JSX suspends Semen Gresik and four others

JAKARTA (JP): The Jakarta Stock Exchange (JSX) said yesterday it had suspended trading in state-controlled cement company PT Semen Gresik until it selected a strategic partner.

The JSX also said it had suspended trading on PT Alumindo Perkasa, PT Modern Bank, PT Bank Umum Nasional (BUN) and PT Bank Surya for not submitting their 1997 financial reports.

"Since Semen Gresik is in the final stages of selecting a strategic partner to buy part of the government's stake in the company, the Jakarta Stock Exchange has decided to temporarily suspend trading in this stock until further notice," JSX said.

Semen Gresik is one of 12 state enterprises being privatized. Two international companies -- Switzerland's Holderbank Financiere Glarus AG and Mexico's Cemex SA -- have submitted bids for the company.

Two weeks ago, Semen Gresik jumped onto center stage when the Capital Market Supervisory Agency (Bapepam) launched an investigation into allegations of insider trading in the stock. The investigation is on-going.

The JSX said the four suspended companies, except for Bank Surya, may resume trading if they submit their financial reports.

Bank Surya, previously controlled by Sudwikatmono, a cousin of former president Soeharto, was closed by the government in April due to its severe liquidity problems. However the bank was not delisted from the stock exchange.

The cash-strapped BUN and Bank Modern are still under the supervision of the Indonesian Banking Restructuring Agency.

Publicly listed companies are required to file their year-end financial reports within four months of the end of their financial year.

But the JSX extended the deadline until June 30 provided they paid a Rp 10 million (US$680) fine for the delay.

The JSX also announced yesterday that 16 listed companies are also facing suspension for not submitting their first-quarter reports.

Reports for the first quarter, which ended in March, should have been reported to the JSX within three months. The JSX also extended this deadline, until July 15, but imposed a fine of Rp 10 million on the companies involved.

The 16 listed companies are Alumindo Perkasa, Anwar Sierad, Aster Dharma Industri, Bakrie & Brothers, Barito Pacific Timber controlled by Prajogo Pangestu, Duta Anggada Realty, Dharmindo Adiduta, Bakrie Land Development, Indorama Synthetics, Modern Bank, Miwon Indonesia, Bank PDFCI, Polysindo Eka Perkasa, Putra Surya Perkasa and Sierad Produce.

The JSX said that if the companies do not pay the fine and submit their first quarter reports by the July 15 deadline, they will be suspended.

JSX director Felia Salim said yesterday the JSX had to take such measures to improve the transparency of the capital market.

"We have to suspend their trading if they do not comply with the stock market regulations," she told The Jakarta Post yesterday

JSX president Cyrill D. Noerhadi had said previously that the current crisis should not become an excuse to delay submitting financial reports to the JSX management. (aly)