JSX sets deadline for Semen Cibinong

JAKARTA (JP): The Jakarta Stock Exchange (JSX) warned cement maker PT Semen Cibinong on Thursday to disclose the status of its undisclosed US$250 million fund by Friday or risk being delisted.

"We need to have their report on where the fund is deposited and whether it has been used as a cash pledge for any of its loans," JSX director Harry Wiguna said.

The country's third largest cement maker said earlier that it deposited the money in several overseas banks in 1997. It refused to name the banks because it feared its creditors would attempt to freeze or take over the funds.

JSX president Mas Achmad Daniri said a committee for the evaluation of company delisting would immediately start working to make a decision on the fate of Semen Cibinong if a disclosure report was not submitted on Friday.

"Within five working days, they will come up with a decision on whether Semen Cibinong should be delisted," Daniri said.

One of the committee's considerations in deciding the fate of Semen Cibinong would be whether the company's refusal to make the disclosure would dampen investor confidence in the country's overall capital market.

"If it is the case, we will have to delist it," he said.

Trading of Semen Cibinong on the JSX has been suspended since Aug. 20.

Harry also said the JSX told PT Asuransi Harta Aman to hold a public expose to disclose information regarding its share price, which jumped from Rp 550 on Dec. 9 to Rp 2,000 four days later.

The irregular share price increase prompted the JSX to suspend trading in the insurance company's shares.

Harry said the JSX was investigating a number of securities companies that were active in trading Harta Aman's shares over the four consecutive days.

The JSX, he said, was also investigating suspected insider trading of salt producer PT Fiskaragung Perkasa's shares days before it was declared bankrupt by the Jakarta Commercial Court late November.

"There was active selling of the company's shares prior to its bankruptcy verdict," Harry said.

Fiskaragung was sued for bankruptcy in May by its 10 foreign creditors for failing to repay $29 million in matured debts.

The court declared Fiskaragung bankrupt after the majority creditors of the company rejected Fiskaragung's debt restructuring proposal. (udi)