JAKARTA. IDX urges all issuers who made profits from their company's performance to distribute dividends to shareholders.

IDX Transaction Supervision Director Kristian Manulang said this was related to his response to the many issuers who succeeded in making profits but did not distribute dividends to shareholders. "We hope that all issuers who make a profit should distribute dividends. This is just a fundamental problem for the company," he said in Jakarta, Monday (8/7/2024).

The company stock that has received a lot of attention from investors recently is PT KDB Tifa Tbk (TIFA). At the General Meeting of Shareholders (GMS), KDB Tifa decided not to distribute dividends for its performance results throughout 2023 to shareholders. In fact, in its financial report, KDB Tifa posted a net profit in 2023 of IDR 59.66 billion. So all net profits are kept as retained earnings to increase working capital, after deducting IDR 50 million for reserve funds.

Investors also responded to TIFA management's attitude as unreasonable. Because, since it was acquired by the Korean Development Bank in September 2020, TIFA has not paid any dividends. In 2023, shareholders also agreed not to distribute dividends for the 2022 fiscal year as the Company posted a net profit of IDR 57.06 billion. Even the company's official website also explains that not a penny of net profit from the 2019 - 2023 fiscal year was distributed as dividends to shareholders.

Head of Customer Literacy & Education PT Kiwoom Sekuritas Octavianus Audi Kasmarandana said companies that do not distribute dividends, even though they make a profit, will be subject to negative sanctions from market players. This means that the KDB Tifa shares sold might not sell on the market. 

"This will be a burden on investors and market speculation will have a negative impact. Market players will not be interested in buying KDB Tifa shares," he explained.

Free Float

KDB Tifa also has not complied with the minimum free float shares of 7.5% according to current capital market regulations. So that 84.6% of TIFA's shares have the status of foreign ownership, in this case the Korean Development Bank.

Until now, the OJK does not seem to have budged in responding to the provisions of the free float regulations they created. Likewise, TIFA seems to not care about facing the threat of delisting from the stock exchange floor because it does not comply with the provisions of Stock Exchange Regulation No. 1A concerning the Listing of Equity Shares. (AM/LM)