JSX warns firms for failing to adopt GCG

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