Tue, 06 Jun 2000

Start-ups need one year for JSX listing

JAKARTA (JP): President of the Jakarta Stock Exchange (JSX) Mas Achmad Daniri said on Monday that start-up companies should have been established for a minimum of one year to qualify for listing on the exchange.

"These companies have to be established for at least one year," Daniri said on the sidelines of an e-commerce seminar arranged by the Indonesian Management Institute (IPMI).

During the one-year period, companies should also have been involved in their core businesses for at least six months, Daniri added.

The exchange is still waiting for approval from the Capital Market Supervisory Agency (Bapepam) to revise its listing regulations to accommodate start-up Internet companies.

Under the draft revision regulation, trading will be divided onto two boards -- a main board and a development board.

Start-up companies (also called new economy stocks), which include Internet and mining companies, will be listed on the development board, according to the draft.

Companies on the development board have to have at least Rp 10 billion total assets.

By contrast, companies on the main board must have a total assets of at least Rp 300 billion, a minimum annual gross income of Rp 20 billion and minimum accumulated profits of Rp 30 billion, the draft states.

Aprt from a ruling stipulating that 60 percent of their revenue has to come from their core business activities, companies to be listed on the main board are also required to have booked profits for the last two consecutive years.

The ownership of non-affiliated shareholders of the listed companies, both on the main board and the development board, should be at least 35 percent.

The exchange and the Capital Market Supervisory Agency (Bapepam) are holding a series of final discussions regarding all sections of the draft revision of the listing regulations, said an informed source at Bapepam.

The exchange has said it was still confident of making the target of implementing the revised listing regulations by late June.(udi)