JSX plans relief for troubled firms

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)