Bapepam imposes fine on Indofarma

JAKARTA: Publicly listed pharmaceutical firm Indofarma was fined Rp 28.9 billion (some US$3.1 million) on Monday, for failing to apply the proper accounting practices in the drawing up of its 2001 financial report.

The Capital Market Supervisory Agency (Bapepam) said that, after a lengthy inquiry, it had found the company guilty of overstating the value of its assets -- in the form of its goods supply -- by Rp 28.9 billion.

The sanction would be imposed on the firm's board of directors who were in charge when the report was published, Bapepam said in a media statement.

Aside from the fine, the state-controlled company has been ordered to improve its bookkeeping ability, as well as its internal control mechanism. The process will be overseen by an independent public accountant, which would reports its finding to Bapepam. -- JP