JSX plans relief for troubled firms

JAKARTA (JP): The management of the Jakarta Stock Exchange (JSX) plans to give some 100 firms on the verge of being delisted from the bourse two additional years to complete their restructuring programs.

In return, these companies must submit monthly progress reports to the stock exchange and the public, JSX president Mas Achmad Daniri said.

The extension is contingent upon progress being made in the restructuring programs, he said.

If there is no progress in their corporate plans, then the companies will be delisted, Daniri said.

He was outlining a number of proposals aimed at strengthening transparency in the capital market. The plan has yet to be approved by the Capital Market Supervisory Agency.

Another proposal is to divide listed companies into three trading boards based on their track records and business prospects.

"This way investors could better identify the risks in the capital market," Daniri said.

The main board would consist of companies with proven track records. The second, the development board, would comprise companies showing good prospects despite drops in performance. The third, the special board, would be for companies whose share prices had dropped below prescribed levels.

If the plan is approved, the JSX's Composite Price Index would be based on the prices of shares on the two upper boards, rather than on all listed companies, he said. (03)