JAKARTA – The authority of Indonesia Stock Exchange (IDX) advises companies on the verge of delisting to arrange a shares buyback as a means of investor protection.

I Gede Nyoman Yetna, Director of Listing of IDX, confirmed that there have been many companies under monitoring of IDX authority that meet the criteria for being delisted.

“One of them includes the stock transaction has been long suspended and has yet to show any adequate improvement regarding to the reasons behind their suspension in the first place,” Yetna explained in Jakarta, Wednesday (7/8).

According to Yetna, the suspension might involve several factors, including legal and going concern issues of the company. In order to determine the delisting status and period, the authority must consider applicable regulations regarding the stock market in IDX and Financial Services Authority (OJK).

“One thing that should be considered is how to maintain investor protection from future potential delisting; from the issuers’ perspectives, they must consider buyback,” Yetna said.

According to Yetna, IDX shall not force issuers on the verge of delisting to conduct a buyback should they not agreed to, yet.

“We continue to communicate to issuers to seek parties that have adequate finance position to facilitate a buyback,” he added.

For the record, IDX reported 49 issuers potentially delisted as of June 28, 2024, including PT Trikomsel Oke Tbk (TRIO), PT Sugih Energy Tbk (SUGI), PT Nipress Tbk (NISP), and PT Bakrie Telecom Tbk (BTEL). (LK/ZH)