Two securities companies suspended for low capital
Two securities companies suspended for low capital
JAKARTA (JP): The Jakarta Stock Exchange (JSX) has temporarily
suspended the trading activities of two securities firms because
of their poor capital reserves.
The stock market operator said in a statement yesterday that
the net adjusted working capital of PT Transpacific Securindo and
PT Monas Buana Securities was lower than the minimum requirement
of Rp 200 million.
"The capital base of the two companies is negative," the
statement said.
A JSX public relations official said yesterday that the
management of the two securities firms would have to increase
their capital base if they wanted to resume trading.
"The management of the two companies will have to increase
their working capital before they are allowed to trade on the
local exchange again," he said.
In a later development, the JSX management said it was
considering delisiting 25 poorly performing companies from the
exchange.
The stock market operator said the net losses of the 25
companies had swelled to more than 50 percent of their paid-up
capital and their total equities were less than the minimum
requirement of Rp 3 billion.
An exchange official said yesterday that some of the listed
companies had explained the reasons for their poor earnings and
low capital base to the JSX management.
A source said the companies could be delisted from the
exchange if their executives took no action to improve financial
performance.
The 25 companies which are in danger of being delisted from
the local exchange are PT Alumindo Perkasa, PT Aneka Kimia Raya,
PT Bank Umum Nasional, PT Bukaka Teknik Utama, PT Central
Proteina Prima, PT Dharmala Agrifood, PT Surya Hidup Satwa, PT
Fajar Surya Wisesa, PT Anwar Sierad, PT Argo Pantes, PT Concord
Benefit Enterprises, PT Ometraco Corporation, PT Inter Delta, PT
Miwon Indonesia, PT Modern Bank, PT Perdana Inti Investama, PT
Sierad Produce, PT Steady Safe, PT Aster Dharmala, PT Darya-Varia
Labotaria, PT Dharmindo Adiduta, PT Intinusa Selareksa, PT Putra
Surya, Multidana, PT Putra Surya Perkasa, and PT Trypolita
Indonesia.
The monetary crisis has caused the rupiah to slump in value
against the U.S. dollar by almost 80 percent since last July and
has been a big blow to most companies in Indonesia. The rupiah is
currently trading at around 13,000 to the dollar compared to its
pre-crisis level of 2,450.
The crisis has forced most companies listed on the local
exchange into technically bankruptcy because their total debt
obligations are now much higher than their equities. (aly)