Bapepam probes Semen Gresik case
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam) is currently investigating suspected insider trading of state- owned cement maker PT Semen Gresik shares on the Jakarta Stock Exchange (JSX).
Bapepam chairman Jusuf Anwar, who replaced I Putu Gde Ary Suta on Monday, told journalists yesterday that the agency had set up a team to investigate possible fraud in the local bourse.
"We have set up a team to thoroughly investigate suspected insider trading of Semen Gresik stocks... Bapepam will not tolerate any manipulative practices in the market," he said.
But he stopped short of naming any suspects, stressing the importance of upholding the presumption of innocence.
"It is just too early for Bapepam to judge who is doing wrong and who is doing right," he said, adding that the team would require at least one month for the investigation.
Jusuf, however, said that the agency already summoned the managements of the state-owned securities companies PT Bahana Securities and PT Danareksa Sekuritas yesterday to explain their role in the trading of Semen Gresik stock.
Bapepam has also asked representatives from PT Jardine Fleming Nusantara to explain its involvement today, he said.
Bahana, Danareksa and Jardine Fleming are all inhouse advisers for the privatization of Semen Gresik.
Jusuf urged investors and securities houses in the local market to abide by existing regulations to improve the market's flagging image.
"International investors are only interested in putting their funds into a transparent and fair stock market," he said.
Former Bapepam chairman I Putu Gde Ary Suta said Monday that he had suspected illegal transactions of Semen Gresik after its stock prices surged over 50 percent since early May to June 18.
"This insider trading is the biggest scandal in the history of our capital market," Putu said Monday.
Semen Gresik stock prices increased 64 percent to Rp 8,900 on June 18 from Rp 5,450 on May 1.
Putu said Bapepam then looked into the three affiliated securities firms, which turned out to be among the most active traders of Semen Gresik during the period.
In addition to the three firms, Putu said Bapepam was also investigating three other securities houses which also actively traded Semen Gresik shares. They are PT Bhakti Investama, PT ING Barings Indonesia and PT Indosuez WICarr Indonesia.
Stock analysts said the securities houses possibly benefited from their inside information that several foreign investors would purchase part of the government's 65 percent stake in Semen Gresik.
Two international cement producers, Switzerland's Holderbank Financiere Glarus and Mexico's Cemex CA, submitted bids for part of the government's stake in Semen Gresik on June 17.
It is suspected that parties benefited from trading stocks in the publicly listed company based on the information which had not yet been made public.
Parties with such insider information could include directors, officers or key employees and relatives with access to company decisions.
Article 104 of the 1995 Capital Market Law states that people convicted of insider trading could be sentenced to a maximum of 10 years in jail and be fined a maximum of Rp 15 billion (US$1.07 million). (aly)