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)