JAKARTA - The Indonesia Stock Exchange (IDX) said that it will not suspend the trade of PT Garuda Indonesia (Persero) Tbk (GIAA) shares as a sanction following irregularities in the state-owned airline’s 2018 financial statements.
IDX Director of Listing I Gede Nyoman Yetna said that the IDX has a corridor of rules for suspension. According to him, there are three factors that can cause an issuer’s shares to be suspended: First, a two-time disclaimer opinion in financial statements.
Second, an adverse opinion in financial statements. Third, a disruption in an issuer’s going concern such as zero revenue in its financial statements.
Currently the IDX continues to monitor Garuda as well as the movement, trade frequency, and volume of its shares in the regular market in order to give the company an opportunity to make improvements. Mr Yetna also said that the IDX is prepared to impose further sanctions if Garuda fails to revise its financial statements in time.
“If they fail to do so, there will be sanctions up to suspension,” said Mr Yetna at the IDX Building as quoted by Kontan.co.id, Monday (1/7). (MS)