JSX warns firms for failing to adopt GCG

The Jakarta Stock Exchange (JSX) has warned 15 listed companies for failing to appoint independent commissioners immediately to supervise their operations as part of the bourse's efforts to improve good corporate governance (GCG) at listed companies.

"There are 15 companies that have not appointed independent commissioners. This is not good. We will give them until this year to comply with the regulation or face penalties," said JSX Harry Wiguna on Monday.

Harry, however, refused to name the 15 companies.

"We have not decided on the penalties yet. It can be financial or administrative, depending on the decision by the Capital Market Supervisory Agency (Bapepam)," he said.

The JSX and Bapepam have been upping their efforts to get publicly listed companies to comply with GCG regulations, one of which is to appoint an independent commissioner.

An independent commissioner is necessary to boost the transparency of listed companies and to supervise their operations with a more objective eye.

Many publicly listed companies have been reluctant to implement corporate transparency concerning key action plans over fears that it may disrupt the plans, or as part of suspected attempts to carry out insider trading and raise the price of their shares.

As has mostly been the case, companies have become willing to disclose their corporate actions only after they were leaked to the media. -- JP