Securities firms given new deadline

JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam) has extended the deadline for securities firms to meet the new capital requirement to Dec. 31, 1999 from the original date of Dec. 1, 1998 due to the unfavorable economic situation.

The postponement is stipulated in the Bapepam Chairman's Decree no. 52/PM/1998, dated Nov. 9.

The head of the agency's laws and legal aid bureau, I Nyoman Tjager, said in a statement that the current monetary crisis had posed a big obstacle for securities firms in meeting the original deadline.

This encouraged the agency to extend the deadline, he said.

Previously, the agency required securities firms to increase their net adjusted working capital to Rp 5 billion (US$625,000) by Dec. 1 this year from the current Rp 200 million.

Most securities firms operating in the local exchange urged the country's capital market watchdog to postpone the enactment of the net capital requirement as they had problems in raising fresh capital amid a crisis which has pushed most companies to the brink of collapse.

Tjager acknowledged that the national economic situation had had a serious impact on the performance of securities firms and thus made it more difficult for them to meet the capital requirement.

"Taking this into account as well as the aspirations of securities firms, the agency chairman has decided to postpone the implementation of the ruling on capital requirement to Dec. 31, 1999."

Tjager added that the agency had also extended the deadline for securities houses to equip all directors with the necessary licenses to Dec. 31, 1999, from Dec. 26, 1998.

The postponement on this licensing matter is stipulated in the Bapepam Chairman's Decree No. 53/PM/1998, dated Nov. 9. (aly)