JSX told to be strict on securities firms

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)