93 firms ignore agency rule

JAKARTA (JP): The chairman of the Capital Market Supervisory Agency (Bapepam), I Putu Gede Ary Suta, disclosed yesterday that 93 of the 288 public companies registered with the agency did not have corporate secretaries, as required by the agency's regulations.

Putu said yesterday in his address to a "corporate secretary lunch" at the Sahid Jaya Hotel that according to the agency's regulation issued in January, all listed and unlisted public companies should have had corporate secretaries by Jan. 1, 1997.

He said 25 of the 60 public financial firms and 36 of the 96 public manufacturing companies did not have corporate secretaries.

A corporate secretary, according to the regulation, functions as a company's contact person to liaise with the agency, investors and journalists.

"Therefore, they must have a comprehensive understanding about the company's performance."

"Moreover, corporate secretaries should be authorized to give reliable statements on behalf of the companies' board of directors," Putu said.

He said that corporate secretaries could clarify market rumors.

Chairman of the Indonesian Public Companies Association Rosano Barack said corporate secretaries could help improve transparency in the capital market.

Responding to a corporate secretary's question on the status of the position in a public company, Putu said that decision should rest with a company's management.

"We actually don't care about a corporate secretary's position. What's more important to us are the corporate secretary's functions, not position," Putu said. (alo)