On June 9 2023, the Indonesia Stock Exchange has implemented the Decree of the Board of Directors of the Indonesia Stock Exchange Number Kep-00081/BEI/05-2023 which regulates the Placement of Equity-Type Securities Listing on the Special Monitoring Board. Revitalization of the Listing Board is carried out because the Exchange considers it necessary to develop a transfer mechanism between Share Listing Boards, so that there are clearer differences between the Listing Boards in the Exchange.
Criteria for Listed Companies on the Special Monitoring Board
The Listed Company will be placed on the Special Monitoring Board if the Listed Company or Equity-Type Securities from the Listed Company meet one or more of the following criteria:
- The average price of shares for the last 6 (six) months on the Regular Market and/or Periodic Call Auction Regular Market is less than IDR 51.00 (fifty one rupiah). This provision does not apply to the Company’s shares listed on the Acceleration Board. The evaluation period is carried out by the Exchange every May and November.
- The last Audited Financial Report received a disclaimer of opinion;
- Did not record income or there was no change in income in the latest Audited Financial Statements and/or Interim Financial Statements compared to the financial statements previously submitted;
- For Listed Companies that:
- engages in the mineral and coal mining business which has carried out the production operation stage but has not yet reached the sales stage or which has not yet started the production operation stage; or
- is a holding company that has a Controlled Company engaged in the mineral and coal sector that has carried out the production operation stage but has not yet reached the sales stage or has not yet started the production operation stage, at the end of the 4th (fourth) financial year since being listed on the Exchange, has not received income from main business activities (core business);
- Has negative equity in the last financial statements;
- Does not meet the requirements to remain listed on the Exchange
- Has low liquidity with the criteria of an average daily transaction value of shares of less than IDR 5,000,000.00 (five million rupiahs) and an average daily transaction volume of less than 10,000 (ten thousand) shares during the last 6 (six) months in Regular Market and/or Periodic Call Auction Regular Market; The evaluation period is carried out by the Exchange every May and November.
- Companies or subsidiaries whose revenue contribution is material to the listed companies and subsidiaries in the condition requested:
- postponement of debt payment obligations;
- bankrupt; or
- cancellation of reconciliation, which has a material impact on the condition of the Listed Company based on the Exchange’s assessment and/or based on the disclosure of the Listed Company’s information;
- Subject to temporary suspension of Securities trading for more than 1 (one) Exchange Day caused by trading activity; and/or
- Other conditions determined by the Exchange after obtaining approval or order from the Financial Services Authority.
Provisions for Listed Companies to Leave the Special Monitoring Board
Listed Companies can leave the Special Monitoring Board with the following conditions:
- is no longer in the condition of:
- The average price of shares for the last 6 (six) months on the Regular Market and/or Periodic Call Auction Regular Market is less than IDR 51.00 (fifty one rupiah). This provision does not apply to the Company’s shares listed on the Acceleration Board.
- The last Audited Financial Report received a disclaimer opinion;
- Does not record income or there is no change in income in the latest Audited Financial Statements and/or Interim Financial Statements compared to the financial statements previously submitted;
- Has negative equity on the last financial statements;
- Does not meet the requirements to remain listed on the Exchange
- Companies or subsidiaries whose revenue contribution is material to the listed companies and subsidiaries in the condition requested:
- postponement of debt payment obligations;
- bankruptcy; or
- cancellation of the settlement, which has a material impact on the condition of the Listed Company based on the Exchange’s assessment and/or based on the disclosure of the Listed Company’s information;
- has recorded income based on the latest financial statements for Listed Companies that:
- engages in the mineral and coal mining business which has carried out the production operation stage but has not yet reached the sales stage or which has not yet started the production operation stage; or
- is a holding company that has a Controlled Company engaged in the mineral and coal sector that has carried out the production operation stage but has not yet reached the sales stage or has not yet started the production operation stage, at the end of the 4th (fourth) financial year since being listed on the Exchange, has not received income from main business activities (core business);
- is no longer in a low liquidity condition, namely the average daily transaction value of shares is less than IDR 5,000,000.00 (five million rupiahs) and the average daily transaction volume of shares is less than 10,000 (ten thousand) shares for 6 (six) months lastly in the Regular Market and/or Periodic Call Auction Regular Market or already have Liquidity Provider Shares;
- has been on the Special Monitoring Board for 30 (thirty) calendar days for Listed Companies that are subject to temporary suspension of Securities trading for more than 1 (one) Exchange Day caused by trading activities
- is no longer in other conditions determined by the Exchange after obtaining approval or order from the Financial Services Authority
- the share price of the Listed Company is at least IDR 50.00 (fifty rupiah), except for shares previously listed on the Acceleration Board.
The Listed Company will effectively leave the Special Monitoring Board according to the date specified in the Exchange announcement and will again be listed on the Listing board before the Listed Company is placed on the Special Monitoring Board. The Exchange has the authority to keep Listing Companies on the Special Monitoring Board based on an evaluation conducted by the Exchange by not only considering the formal aspect, but also considering the substance of the requirements.
Suspension of Securities for Listed Companies on Special Monitoring Board
The Exchange suspends Securities if the Listed Company has been on the Special Monitoring Board for more than 1 (one) consecutive year. Suspension of Securities is carried out at the Regular Market and Cash Market.
The Exchange will revoke the Securities Suspension if the Listed Company has left the Special Monitoring Board, unless there is another matter that grounds the Securities Suspension in accordance with other Exchange Rules.
That’s the contents of the decision of the board of directors of the Indonesia Stock Exchange. This letter concerns the special monitoring board and its provisions. Hopefully this information can be useful!
Adapted by: Lavy El Harisy