JSX announces new listing regulations

JSX announces new listing regulations

Zakki P. Hakim, Jakarta

The Jakarta Stock Exchange (JSX) announced on Thursday changes in
its listing regulations, which provide tougher sanctions for
companies failing to submit their audited financial reports on
time.

JSX president Erry Firmansyah told a press conference that the
maximum penalty for late submission of financial reports has been
increased to Rp 500 million (US$55,500), compared to only Rp 10
million under the current regulation.

While the new sanctions will be effective on Oct. 1, the
revision to the other parts of the listing regulations will be
effective as of Monday. The full copy of the revised regulations
will be issued to the press on Monday.

The move came amid a growing number of listed companies
failing to submit their audited financial reports on time, which
has created new uncertainty for investors in the local stock
market.

Erry explained that under the revised regulation, the bourse
will first issue a warning letter to companies that fail to
submit their financial accounts by the deadline. There will be a
Rp 1 million fine for each day the submission is delayed.

A second warning letter plus a Rp 50 million penalty will
follow after a 30-day delay, and a third warning letter plus a Rp
150 million penalty will be imposed for another 30-day delay.

The exchange would then consider imposing the maximum fine of
Rp 500 million if the company in question still has not submitted
the financial report. This will be followed with suspension in
the trading of the shares of the companies.

"We sincerely hope that companies do not find themselves in
such a situation," Erry said.

The JSX has previously threatened to delist or suspend 35
firms including blue chip telecommunications company PT
Telekomunikasi Indonesia (Telkom), cement giant PT Semen Gresik,
and tire maker PT Gajah Tunggal for failing to submit their
audited 2003 financial reports by the deadline.

The three companies, however, eventually managed to submit the
reports.

However, until now four firms have not filed the reports, thus
facing the risk of being delisting from the bourse. The companies
are PT Wahana Jaya Perkasa, PT Siwani Makmur, PT Bukaka Teknik
Utama and PT Texmaco Perkasa Engineering.

Meanwhile, JSX listing director Harry Wiguna said that under
the revised regulation, a particular company would be delisted if
its shares had been suspended for 24 consecutive months, or if
the firm is considered to no longer have prospects as a going
concern such as in the case of bankruptcy or closure.

In the case of voluntary delisting, at least two-thirds of a
firm's shareholders must agree on the action and the firm must
have already been listed in the bourse for at least five years.

Companies could re-enter the bourse (relisting) within six
months after being delisted, while the original regulation
required a five to 10 year interval, Harry said.

Harry further said that the revision to the regulations also
covered the area of determining share price in the case of share
buy back.

Zulfikar, a stock market analyst at Mandiri Sekuritas, said
that the revision was a good step in a bid to help protect the
interests of investors.