Restore trust in the stock exchange

The credibility of the stock exchange is in jeopardy in connection with the potential loss caused by the cancellation of transactions of HM Sampoerna's shares at the Jakarta Stock Exchange (JSX). The capital market weekly, Prospektif, mentioned that the losses suffered by investors would reach approximately Rp 70 billion.

The huge losses prompted investors to react strongly by filing a lawsuit through their lawyers as well as making claims against the stock exchange management and securities companies.

The Capital Market Supervisory Board (BAPEPAM) has issued a statement that it will take stern legal measures, pending investigations conducted by the JSE. These include the closure of relevant securities companies, should they be found of having committed a serious felony.

In uncovering who is to blame, the Consortium for Transparent Public Information (KUTIP) would like to express the following:

1. The entire stock exchange community is urged to act wisely in order to restore public trust.

2. It is warranted that BAPEPAM take the necessary stern measures and reveal the guilty party without bias.

3. It is better for JSX to prevent the cancellation of transactions, because it will further damage its image and it will be unfair to all parties concerned.

4. A public relations campaign is required to restore the image of the stock exchange, because lengthy court procedures will dampen the development of the country's capital market.

Ultimately not only the stock exchange and related agencies will suffer a great loss, but other national bodies as well. This, of course, will tarnish the image of the country in the eyes of the world.

BUDI PURNOMO

Coordinator of KUTIP

Jakarta