Bapepam has not imposed penalty on erring firms

JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam) has yet to penalize 35 listed companies which missed the April 30 deadline on submitting their 1997 financial reports, the agency's chairman said yesterday.

I Putu Gede Ary Suta said a penalty would be handed down only after the agency received complete information on the reason for the delay.

In previous years, Bapepam imposed the penalty one month after the deadline passed.

Putu did not elaborate on why the agency was delaying extending the penalty, but emphasized he would remain strict and never allow any companies to breach the capital market regulations.

He said the economic crisis should not be used an excuse by the delinquent firms.

"Whatever results they have, whether they record earnings or losses, they should report to Bapepam," he said. "Listed companies are required not only to report the good earnings but losses as well."

Capital market regulations stipulate that publicly listed companies must submit their annual financial reports to Bapepam and stock exchange operators three months at the latest after the end of their book years.

Sanctions

Bapepam and the stock exchange impose different sanctions against tardy companies.

The agency imposes a fine of Rp 1 million (US$100) for each overdue day. The Jakarta Stock Exchange (JSX) metes out a lesser amount of fine but companies are liable to be delisted.

According to the JSX, about 35 companies have not submitted their annual balance sheets, including Bakrie and Brothers, Steady Safe, Eterindo Wahanatama, Ometraco Corporation, Gajah Tunggal, Bank Danamon, Bank PDFCI, Bank Surya, Bank Tiara Asia, Bank Umum Nasional, Modern Bank, Bank Dagang Nasional Indonesia (BDNI) and Barito Pacific Timber.

Putu acknowledged the Rp 1 million fine per day was probably "peanuts" for many publicly listed companies but warned that the relatively insignificant penalty was no reason for foot-dragging on submitting the reports.

"Though they can pay the Rp 1 million penalty fee, it should not be the reason to persistently delay their financial report," he said.

A JSX spokeswoman announced yesterday the exchange would temporarily suspend the trading activities of the 35 listed companies if they failed to pay a previously announced penalty fee of Rp 10 million each ($1,000) by June 12 for the delay in submitting their financial reports.

"If they fail to pay the penalty fee by June 12, I think the JSX management will have to suspend the trading activities of those companies on June 15," Intania Abdams said. (aly)