27 firms face delisting from JSX

JAKARTA (JP): Twenty-seven companies which received a disclaimer from auditors in their 1998 financial reports will be delisted from the Jakarta Stock Exchange (JSX) if their 1999 reports show no improvement.

"If these companies receive disclaimers again in their December 1999 audited financial statement, they will automatically be delisted," said the Jakarta Stock Exchange in a statement on Tuesday.

The companies include salt producer PT Fiskaragung Perkasa, which is in a liquidation process.

The move, according to JSX, was strictly to preserve a healthy investment climate at JSX.

"Public companies with disclaimers are considered to have failed to provide the public with a fair basis for making their investment decisions," JSX said.

The companies which received auditors' disclaimers include PT Bank Duta, PT Bank Rama, PT Dharmala Sakti Sejahtera, PT Lippo Pacific, PT Jakarta Kyoi Steel Works Limited, PT BDNI Capital, PT Inti Indorayon Utama and PT Mandiri Intifinance.

Most listed companies will have their audited December 1999 financial statement completed and released to the public some time in late March.

Public accountants give disclaimers when the company it audits shows no concern or faces uncertainties in the continuation of its business, which, among other things, is due to a poor financial performance or a threat of being declared bankrupt.(udi)