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)