The Indonesia Stock Exchange (BEI) has revealed that 41 companies are at risk of being delisted due to prolonged trading suspensions.
These companies have had their shares suspended for over six months, indicating a significant potential for delisting.
Teuku Fahmi Ariandar, Head of the Division of Regulations and Listed Company Services at BEI, told a journalist workshop on Monday, June 3, 2024, that the exchange considers delisting stocks that have been suspended for an extended period.
“Once the suspension exceeds six months, the exchange will assess the potential for delisting,” Fahmi said.
The list of companies facing potential delisting includes prominent names such as PT Waskita Karya (WSKT), PT HK Metals Utama (HKMU), Capitalinc Investment (MTFN), Saraswati Griya Lestari (HOTL), and Triwira Insanlestari (TRIL), among others.
Fahmi noted that many of these companies have been listed on the exchange for a long time, with the most recent addition dating back to 2019.
During a suspension, trading in the company’s shares is halted, preventing buying or selling of the stock. To lift the suspension, companies must address issues in their financial reports or irregularities in their trading patterns.
I Gede Nyoman Yetna, Director of Company Assessment at BEI, said that companies at risk of delisting are those unable to maintain their status as listed entities.
“In cases of forced delisting, we prohibit these entities from re-entering the capital market for a period we determine, typically five years,” he said.
Forced delisting occurs when a company violates exchange regulations and fails to meet minimum financial standards.
Such companies often neglect to submit financial reports, raise concerns about their business continuity, and fail to provide explanations for their status for up to 24 months. Persistent violations can lead to the exchange removing the company’s shares from the market.
“In forced delisting scenarios, responsible parties must buy back shares from the public,” Nyoman said, highlighting the obligation for these companies to repurchase publicly held shares.
