JSX suspends Indofarma shares

The Jakarta Stock Exchange (JSX) suspended on Friday trading in shares of state-controlled pharmaceutical company PT Indofarma, over reports that the company's 2003 losses would widen due to a planned write-off of old medical equipment and drugs.

The JSX said it suspended trade in the shares over fears of speculation by investors. Indofarma shares were trading at Rp 160 when the suspension took effect.

Bisnis Indonesia daily reported on Friday that Indofarma expected to register a 2003 financial loss of Rp 110 billion (US$12.94 million), compared to Rp 59.2 billion in 2002.

The troubled company said last year that its net loss in the third quarter increased to Rp 40 billion from Rp 34 billion in the second quarter, on account of huge borrowing expenses.

It is not known when the JSX will lift the trading suspension. -- JP