Bapepam issues penalty decree

Bapepam issues penalty decree

JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
has issued a decree requiring that listed companies, stock
exchange operators and their supporting institutions pay a fine
if they fail to submit regular reports to the agency.

Bapepam secretary Pande Putu Raka said in a statement on
Tuesday that the decree, signed by agency chairman Yusuf Anwar on
Aug. 5, aimed to promote transparency and "good corporate
governance".

Under the 1995 law on capital markets, listed companies, stock
exchange operators and supporting institutions -- including
securities companies, mutual funds, clearing agencies, custodian
banks, guarantors -- must submit regular financial reports to the
agency. Otherwise they will face a fine.

The statement however did not specify the amount of the fine.

However, Pande said the government had not issued a regulation
on the payment of the fine, leading to cases of late payment.

Under the new Bapepam decree, a delinquent company has to pay
the fine to the state treasury within 30 days of the issuance of
the penalty statement from Bapepam.

Payment could be delayed for 28 days, but this would incur a 2
percent monthly interest charge.

If a company fails to pay a fine within 28 days, it would have
to settle its debt with the state receivership agency. (jsk)