Bapepam issues new rule

Bapepam issues new rule

JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
issued a new ruling on Wednesday allowing publicly listed
companies to carry over their foreign exchange losses arising
from the rupiah's sharp depreciation against the U.S. dollar to
the following years.

The agency said that listed firms would have to clearly state
the amount of foreign exchange losses to be carried over and the
amount of foreign exchange losses to be charged in the current
year if they want to benefit from the tax incentive.

The head of the agency's accounting division, Indarto, said
that the new ruling would prevent Indonesia's cash-strapped
companies from posting negative equity on their balance sheets
and from being delisted from the local exchange.

Last month, the agency issued several new rulings, including
regulations related to the revaluation of assets and the
simplification of the limited public offering procedure to help
listed firms improve their capital structure. (aly)