JSX told to provide more evidence on Lippo e-Net
JSX told to provide more evidence on Lippo e-Net
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
has asked the management of the Jakarta Stock Exchange (JSX) to
provide more evidence on alleged misleading information given by
publicly listed PT Lippo e-Net.
"We want clarification from the JSX about what specific
capital market rules have been breached (by Lippo e-Net)," head
of the company financial assessment bureau at Bapepam Freddy
Saragih said on Tuesday.
The JSX reported the insurance company to Bapepam in early
April, saying it had found some inconsistencies in the statements
made by Lippo e-Net. The inconsistencies, according to the JSX,
caused misinterpretation among the public about the company.
The JSX reported the case to Bapepam as many analysts
expressed concern over possible share price manipulation by the
company.
Lippo e-Net share prices doubled within a week in mid-January
after the company made a high profile public announcement that it
had transformed itself from an insurance firm to an Internet
company and planned an immediate allocation of Rp 1 trillion for
the business.
The stated fund allocation has not been realized to date.
The JSX, in its report, said Lippo e-Net was not ready to
enter the e-commerce business.
Lippo e-Net had purposely directed "certain" interpretations
about the company to form a certain public perception, the report
added.
And finally, the report said, Lippo e-Net purposely took
advantage of the market euphoria about the Internet industry.
The chief commissioner of Lippo e-Net Billy Sindoro has denied
the allegation, saying that the plan to enter the Internet market
was one of the company's long-term business interests.
"We never tried to mislead the market," he told securities
analysts in a meeting recently.
Freddy said the JSX had to explain further from what point of
view Lippo e-Net was not ready for the e-commerce business.
It was also not clear who had the problem with the
interpretation, Freddy added.
"That might be the interpretation of the JSX. How about the
public's interpretation?" Freddy queried.
"About the market euphoria, what kind of euphoria does the JSX
mean?" he asked again.
Bapepam's chairman, Herwidayatmo, said the agency did not only
ask for more evidence from JSX management, but also from Lippo e-
Net in carrying out its investigation.
Freddy earlier said Lippo e-Net was required to provide
evidence to Bapepam that the company was serious in entering the
Internet sector.
But Freddy avoided discussing whether Lippo e-Net had to
present evidence that the company's Rp 1 trillion commitment to
the Internet business, as widely announced to the public,
existed.
He said, however, that Bapepam had received evidence in the
form of Lippo e-Net's minutes of meetings which showed that some
years ago the company was interested in the Internet business.
Freddy said Bapepam would have a final decision on Lippo e-Net
next Monday.(udi)
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
has asked the management of the Jakarta Stock Exchange (JSX) to
provide more evidence on alleged misleading information given by
publicly listed PT Lippo e-Net.
"We want clarification from the JSX about what specific
capital market rules have been breached (by Lippo e-Net)," head
of the company financial assessment bureau at Bapepam Freddy
Saragih said on Tuesday.
The JSX reported the insurance company to Bapepam in early
April, saying it had found some inconsistencies in the statements
made by Lippo e-Net. The inconsistencies, according to the JSX,
caused misinterpretation among the public about the company.
The JSX reported the case to Bapepam as many analysts
expressed concern over possible share price manipulation by the
company.
Lippo e-Net share prices doubled within a week in mid-January
after the company made a high profile public announcement that it
had transformed itself from an insurance firm to an Internet
company and planned an immediate allocation of Rp 1 trillion for
the business.
The stated fund allocation has not been realized to date.
The JSX, in its report, said Lippo e-Net was not ready to
enter the e-commerce business.
Lippo e-Net had purposely directed "certain" interpretations
about the company to form a certain public perception, the report
added.
And finally, the report said, Lippo e-Net purposely took
advantage of the market euphoria about the Internet industry.
The chief commissioner of Lippo e-Net Billy Sindoro has denied
the allegation, saying that the plan to enter the Internet market
was one of the company's long-term business interests.
"We never tried to mislead the market," he told securities
analysts in a meeting recently.
Freddy said the JSX had to explain further from what point of
view Lippo e-Net was not ready for the e-commerce business.
It was also not clear who had the problem with the
interpretation, Freddy added.
"That might be the interpretation of the JSX. How about the
public's interpretation?" Freddy queried.
"About the market euphoria, what kind of euphoria does the JSX
mean?" he asked again.
Bapepam's chairman, Herwidayatmo, said the agency did not only
ask for more evidence from JSX management, but also from Lippo e-
Net in carrying out its investigation.
Freddy earlier said Lippo e-Net was required to provide
evidence to Bapepam that the company was serious in entering the
Internet sector.
But Freddy avoided discussing whether Lippo e-Net had to
present evidence that the company's Rp 1 trillion commitment to
the Internet business, as widely announced to the public,
existed.
He said, however, that Bapepam had received evidence in the
form of Lippo e-Net's minutes of meetings which showed that some
years ago the company was interested in the Internet business.
Freddy said Bapepam would have a final decision on Lippo e-Net
next Monday.(udi)