Few companies heed government call to register

Few companies heed government call to register

JAKARTA (JP): The Ministry of Trade and Industry has received
a low response from private and state-owned companies to its call
to register.

Director General of Domestic Trade Teddy Setiadi said on
Saturday that only 877 companies, or 29.2 percent, of the 3,000
eligible limited-liability entities had registered and submitted
their annual financial reports as required.

Teddy said the response from local firms remained low although
the regulation has been effective since April.

The companies that are required to register with the
ministry's directorate of corporate registration include publicly
listed companies, issuers of bonds or promissory notes or those
with assets worth more than Rp 50 billion.

Besides annual financial reports, these companies are also
required to provide data and information on their shareholders
and business profiles.

Teddi said at least 3,000 private and state companies met the
criteria to be required to register with the ministry's
directorate of corporate registration.

"But until July 1, only 877 companies, or only 29
percent of the targeted 3,000 companies, have submitted their
reports."

According to data from the ministry, only 134 publicly listed
companies had registered their financial reports with the
ministry as of early July.

The number accounted for only 44.7 percent of the country's
more than 300 publicly listed companies.

The ministry data also indicated that only 15 state companies
had submitted their financial reports, or only 9.7 percent of the
country's 154 state-owned companies.

The obligation to submit financial reports was imposed to
comply with Government Regulation No. 24/1998 and a Minister of
Industry and Trade Decree on Annual Financial Information and
Financial Report Registration of Companies, both issued late last
year.

The annual financial reports will be re-audited by an
independent public accountant before being submitted to the
ministry.

The registration is free of charge.

Teddy said companies were obliged to submit financial reports
and other information to provide to the public clear and
transparent information about companies and their performance.

"The data would enable us to observe companies' conditions and
performance, whereby the government could see which company
should be helped," he said.

He added that people who wanted to get information about a
company would be allowed access to the ministry's corporate data
network.

The ministry's director of company registration, Edy Suseno,
said the government had set up several penalties for companies
failing to meet the obligation.

The government would revoke the business licenses of public
accountants who failed to submit their clients' financial
reports, he said.

A company not meeting the requirement would face a maximum
fine of Rp 1 million and two months' jail terms for its
executives, he added.(gis)