JSX told to be strict on securities firms

JAKARTA (JP): The Capital Market Supervisory Agency expressed concern yesterday over the financial reports of Indonesian securities companies.

The agency's securities and transaction bureau head, Agus Muhammad, said PT Bursa Efek Jakarta (BEJ), which manages the Jakarta Stock Exchange (JSX), should monitor securities companies' financial reports more vigorously.

He said this was necessary because of the increased volume of transactions on the JSX.

"Securities companies should improve their auditing to enable them to provide proper financial reporting," he said.

He said the agency issued a directive last month stipulating the guidelines for securities companies' financial reports.

The directive stipulates securities companies' financial reports and administrative activities should be based on the Indonesia's generally accepted accounting principles.

The directive states securities companies' financial reports should include a balance sheet, income statement, loss and profit statement, footnotes and other reports which are integral parts of financial statements.

He said securities companies which violate the guidelines could lose their operating licenses.

Last year three securities companies did not provide the agency and PT BEJ with complete financial statements and were suspended. They were PT Tunas Perdana Sekuritas, PT Transpacific Securindo and PT Putrajuang Sekupindo.

"Improper financial reporting can damage the public's trust in the securities industry," he said. (09)