5 brokerage campanies suspended

JAKARTA (JP): The Capital Market Supervisory Agency temporarily suspended yesterday five brokerage companies for their poor performance.

The agency said that the five companies, PT Artha Adya, PT Creative Securities, PT Danagajah Sakti, PT Pancasumber Dhanamandiri and PT Saranadana Investindo, no longer met the operational standards.

None of the five brokerage houses, for example, had carried out any activities for at least one month in a year, the agency said.

Agency chairman I Putu Gede Ary Suta said earlier the companies had been repeatedly warned to improve their operations but to no avail.

Last year, the agency warned about 17 securities houses to improve their operations and set clear business plans.

They included Aperdi, Artha Adyanugraha, Arya Shinta Finance, Asprina Prima Sentosa, Aldiracita Corporitama, Danagajah Sakti, Garudapara Investindo, Interindo Danapaya, Putera Master Sekuritas, Sekurindo Pratama and Srikandi Securities Investindo.

Early last month, the agency urged shareholders of small securities houses to inject fresh funds into their businesses to strengthen their capital in a bid to improve their operations in the capital market.

Securities houses, by regulation, are required to have a minimum paid-up capital of Rp 10.5 billion.

He said around 100 securities firms, or almost half of the 214 securities houses at the Jakarta Stock Exchange, were operating with a weak capital structure.

If these firms do not increase their capital, it is predicted that they will face problems when trading activities increase, Putu said. (aly)