Jakarta Stock Exchange threaten to delist 35 companies
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.