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)