PT Erdhika Mulyatama defies JSX's penalties
PT Erdhika Mulyatama defies JSX's penalties
JAKARTA (JP): PT Erdhika Mulyatama, a securities company registered on the Jakarta Stock Exchange (JSX), has refused to comply with the exchange's penalties, deciding to bring its case to the Jakarta Administrative Court instead.
A law consultant, Indra Savitri, told The Jakarta Post yesterday that although his client, Erdhika, agreed to stop trading on the JSX on Feb. 7, it has decided to fight its case in court.
Besides suspending Erdhika from trading for 30 days, the JSX also slapped it with a Rp 2.5 million (US$1,086) fine. The securities company refused to pay.
The JSX charged that Erdhika failed to execute a transaction it made with another brokerage firm, PT GK Goh Ometraco. On Nov. 2, Erdhika ordered 100,000 shares of PT Sucaco Cable at Rp 5,500 per share. The order was met by Goh Ometraco, which then offered to sell the 100,000 shares Erdhika wanted at Rp 5,700 each. Both parties then made a deal over the phone for Rp 5,500 per share.
Indra, however, contends that there is no legal evidence that Erdhika and GK Ometraco made the deal.
"What we are now looking for is simple: evidence of a deal. I don't understand why the JSX made a decision without evidence," Indra said.
Indra said he had reported the case to the Capital Market Supervisory Agency (Bapepam), which, according to the capital market law, acts as a court of appeals for the exchange's members.
"But I didn't get any clarification from the agency. Nor did Bapepam take any action on my complaint," he said.
"Because Bapepam would not function as an appeals court for our client, we then decided to bring the case to the administrative court," he said.
"Our plea is simple: The JSX must postpone its decision until my client can be legally proved guilty," Indra said.
Indra insisted his client would have no difficulties paying the Rp 2.5 million fine if found guilty.
"The biggest loss is the suspension. Erdhika will lose money for being suspended from trading," he said.
The JSX's president, Hasan Zein Mahmud, declined to comment on the case when contacted by the Post.
The JSX's director for supervision, Stanislaus Say, said yesterday that the JSX would not reverse its decision because it was based on conclusive findings that Erdhika and GK Ometraco had committed to a transaction.
"How can Bapepam handle more complicated cases with larger transaction values if won't handle this simple case?" Indra asked.
Last October Bapepam took over a JSX investigation of several brokerage firms suspected of insider trading on the shares of PT Bhuwanatala Indah Permai.
While Bapepam's investigation was underway, the JSX suspended the trading of Bhuwanatala shares on Oct. 7 because of rumors that businessman Johannes Kotjo was to take over the company.
Although the Bhuwanatala share prices increased sharply and the insider trading rumors proved true, Bapepam has not acted against the brokerage firms. (08)