Restore trust in the stock exchange

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