Lippo e-Net 'gives misleading info'
Lippo e-Net 'gives misleading info'
JAKARTA (JP): Equity analysts accused listed life insurer PT
Lippo e-Net on Wednesday of presenting misleading information to
fool the public into believing it had transformed itself into an
Internet company.
A number of equity analysts attending the company's public
expose at the Jakarta Stock Exchange office on Wednesday said
they were stunned to find out that thus far Lippo e-Net was a
mere insurance company with practically no involvement in
Internet investment or e-business.
"Lippo e-Net is spreading misleading information obviously
only to stir their own share prices up," said Lin Che Wei of PT
SG Securities Indonesia.
"Why do they already claim to be an Internet company, while
saying they have not yet completed their business plan for the
Internet business?" Lin queried.
Lin said Lippo e-Net's Internet business story was only a
sensation to capitalize on investors' craze for the stock of high
technology and Internet companies.
Lippo e-Net earlier announced it had changed its name to PT
Asuransi Lippo e-Net from PT Asuransi Lippo Life as it had turned
itself into an Internet and e-commerce company.
"Lippo e-Net since today has officially transformed itself
into an Indonesian cyber business and e-commerce company worth Rp
2 trillion (US$266 million)," the company announced in late
January.
Johanes Soetikno from the Indonesian Securities Investors
Society (MISI) regretted what he called Lippo e-Net's
irresponsible move to create such an image, while in fact it had
not yet moved from insurance to Internet business.
"It is against the business code of ethics and the law that
the company tried to convince the public that it was an Internet
company, while actually it had not yet started any Internet
investment or business," he said.
Law No. 8/1995 on Capital Market clearly prohibits any party
from intentionally presenting untrue or misleading information to
the public in a bid to artificially influence share prices on the
stock market.
The law threatens violators with a maximum 10 years of
imprisonment and a maximum Rp 15 billion fine.
Lippo e-Net president commissioner Billy Sindoro denied that
the company had violated the law.
"Internet business is of the company's interest and we would
invest in that to increase the value of stock held by investors,"
he said.
He said Lippo e-Net had about Rp 2 trillion in assets that can
be gradually used for Internet investment.
The Rp 2 trillion assets include Rp 170 billion in cash, Rp
1.2 trillion in marketable securities and the remaining in equity
participation in the non-listed affiliates.
"We are now still an insurance company with investments in the
Internet business," he said.
He said the company would hold an extraordinary meeting in
April to gain shareholders approval for the company's new name,
the company's new statute, and its shift from insurance to
Internet business.
Lippo e-Net, listed on the Jakarta Stock Exchange, currently
manages less than 1 percent of the insurance premium funds placed
by clients in the company as it has already transferred more than
99 percent of the funds to its affiliate, PT AIG Lippo, which is
30 percent owned by Lippo e-Net. (udi)