Bapepam cancels permits of 10 securities firms

Bapepam cancels permits of 10 securities firms

JAKARTA (JP): Ten local and foreign joint-venture securities
companies on the Jakarta Stock Exchange have lost their licenses
for breaching capital market regulations or ceasing to be active.

Bapepam announced yesterday that the 10 firms were PT Creative
Securities, PT Pancasumber Dhanamandiri, PT Patriatama
Dhanamandiri, PT Saranadana Invesindo, PT Deutsche Morgan
Grenfell Indonesia, PT Schroders Indonesia, PT Gandasurya
Sekuritas, PT Mifcor Sekuritas, PT Buanamas Invesindo and PT
Jardine Fleming Nusantara Investment Management.

Bapepam's secretary, Winarto, said in a statement that the
first three securities firms were no longer allowed to operate as
a brokerage for breaching capital market regulations. The
remainder were suspended for being no longer active in the
market.

He said that Morgan Grenfell lost its brokerage and
underwriting licenses.

"The brokerage license of Schroders Indonesia is revoked while
its underwriting license is limited."

Winarto said that Bapepam also revoked the underwriting
licenses of PT Gandasurya, Mifcor Sekuritas and Buanamas
Invesindo, and the license of PT Jardine Fleming Nusantara
Investment Management as an investment fund management company.

He said the licenses of PT Schroders Indonesia, Deutsche
Morgan Grenfell Indonesia, Mifcor Sekuritas, Gandasurya Sekuritas
and Jardine Fleming Nusantara Investment Management were
suspended because they decided to stop their brokerage and
underwriting business in Indonesia's capital market.

According to earlier reports, Deutsche Morgan Grenfell, for
example, decided to consolidate its Indonesian equities into the
Hong Kong and Singapore hubs as part of its cost-cutting measures
to cope with Indonesia's worst economic crisis.

Head of the company's Equities Asia and Australia division
Mark Cullen said early this year that consolidation was expected
to enable the company to integrate its regional operations more
effectively into its global equities platform.

Bapepam also announced yesterday that it had suspended the
licenses of Johan Yoranouw of Malonda & Partners public
accounting firm and Ronny Wijata Dharma of KPMG Hanadi Sudjendro
and Partners accounting firm for failing to comply with article
66 of Capital Market Law No. 8/1995.

"The agency has to take such measures to enforce the capital
market law and protect the public investors," the statement said.
(aly)