JSX warns of delisting companies

JAKARTA (JP): The management of the Jakarta Stock Exchange (JSX) pledged yesterday to delist companies which no longer meet listing requirements.

JSX director Mas Achmad Daniri said a delisting measure was needed to protect investors and encourage listed companies to improve their business performances.

Media reports said recently that PT Pan Brothers Tex, PT Pool Asuransi, PT Great Golden Star and PT Langgeng Makmur Plastic Industry were some of the companies that had fallen foul of the JSX-set listing criteria.

Daniri said JSX executives acknowledged that some companies could be delisted but he did not name names.

"We will hold a hearing with executives of the companies to find out what is really happening with them," he said after a seminar on strategies to avoid delisting.

Daniri said the hearing would be soon after the companies annual shareholders' meetings in the coming weeks.

"This is important so the company will have the shareholders' approval on what steps to take," he said.

According to the exchange's regulation, listed companies which suffer losses and do not pay dividends for three consecutive years will be suspended from the market, or delisted.

Companies, whose shares are held by fewer than 100 people and those whose equity falls below Rp 50 billion, should be also delisted.

"A company can be also delisted from JSX if there are no trading transactions in the previous six months," he said.

Daniri said since JSX was established, five companies have been delisted: PT Singer Industries, PT Prodenta Indonesia, PT Praxair Indonesia, PT Textronic Permai Indonesia and PT Pfizer Indonesia.

Singer was delisted on May 5, 1995, Pfizer and Prodenta on April 27, 1994, Textronic on May 19, 1995 and Praxair on January 15, 1996. (09)