Jakarta Stock Exchange threaten to delist 35 companies

Rendi A. Witular, Jakarta

The Jakarta Stock Exchange (JSX) has threatened to delist 35 firms, including bluechip state-owned telecommunications company PT Telekomunikasi Indonesia (Telkom), from the stock market if they fail to submit their 2003 audited financial reports by mid- June.

JSX listing director Harry Wiguna told The Jakarta Post on Wednesday the bourse would issue a second warning letter to each the 35 firms this week for failing to submit their financial reports. The letter fines the companies Rp 10 million (US$1,160).

"The 35 companies are at risk of being delisted from the bourse if they fail to comply with the JSX regulations. There will be no dispensation given," Harry said after attending the JSX annual general shareholders meeting.

The second warning letter comes after the companies failed to submit their financial reports by the revised April 30 deadline. The bourse sent its first warning letter to the companies in early April after they failed to submit their reports by March 31.

Aside from Telkom, other companies at risk of being delisted include state cement producer PT Semen Gresik and tiremaker PT Gajah Tunggal. Telkom is currently the largest counter on the JSX, with around 17 percent market capitalization.

Telkom, which also has its shares listed on the New York Stock Exchange, failed to submit its financial report on time after trying to settle its 2002 financial report, which was rejected by the U.S. Securities and Exchange Commission as deficient.

Telkom settled the problem in February and is currently racing to finish its 2003 audited financial report by June 30.

Harry said the latest letter gave the companies an extension period of 30 days. The bourse would then suspend trading of the companies' shares for two weeks if they failed to submit their reports after this date.

If they again failed to comply within the two-week suspension, the JSX had no other choice but to delist them, he said.

"We have to maintain the rules so the bourse can develop in a healthy environment. The companies cannot make excuses," Harry said.

During the meeting, JSX shareholders appointed Telkom president Kristiono a commissioner of the JSX along with Kim Eng Securities president Mustofa, Merryl Lynch president Lily Widjaja, secretary to the minister of state enterprises Bacelius Ruru and public notary Fathiah Helmi.