49 firms face delisting

JAKARTA (JP): The Jakarta Stock Exchange (JSX) said last week that 49 listed companies were put on the watch list for possible delisting due to poor financial performance and/or qualified comment from their public accountants.

Companies on the watch list are those with unsound equity or doubtful business prospects as declared by their respective public accountants, JSX said in a statement referring to its existing listing regulation.

Listed companies -- that have been operating at a loss for the last three years, that have a net equity of less than Rp 3 billion, a net equity in deficit of over 50 percent of paid-up capital, or have received a "qualified comment" from a public accountant -- are put on the watch list as a warning, according to JSX listing regulation.

The 49 companies are to meet with JSX officials within 10 days of receiving the warnings to present plans to improve their financial performance.

The companies include state-owned Bank Negara Indonesia, Bank Bali, Bank Tiara Asia, Bank Danamon, Bank PDFCI, Lippo Pacific, Bakrie & Brothers, Astra International, Indomobil Sukses Internasional and United Tractors. (udi)