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apital Market and Financial Institutions Supevisory Agency (Bapepam-LK) demands explanations from five companies for failing to realize buyback programs.

The buyback plan, set up after the October stock market collapse, covering a total of 32 publicly listed companies helped create a boost in confidence among the investors in a depressed, demoralized market.

However, the failure to honor the plans presented in that time of crisis is tantamous to providing the public with misleading information.

"We sent them letters early this week asking for the reasons why they haven't started their buyback programs," said Anis Baridwan, Bapepam's bureau chief of financial report inspection for real sector companies

In the aftermath of the October battering, Bapepam issued a regulation which allowed publicly state companies to buy back a maximum 20 percent of their shares.

Under the regulation, a company is allowed to buy back shares during a three-month period without the approval of a shareholders' meeting.

Normally, the shareholders' prior approval is needed before buying back shares, usually limited to a maximum 10 percent of total stock.

Thirty two publicly-listed firms, including ten state companies, have submitted their buyback plans.

However, as of Jan. 7 these firms only spent Rp 1.76 trillion (US$156.6 million) out of a total of Rp 22.17 trillion planned for buybacks, while five firms did not take part in the scheme at all, right up until their stated buyback period ended.

The five are state pharmaceutical company PT Kimia Farma, state tin mining company PT Timah, construction company PT Bakrieland Development, and shipping firms PT Berlian Laju Tanker and PT Arpeni Pratama Ocean Line.

Aside from five companies that failed to buy back their shares, five other firms have not so far bought back shares as planned, although their buyback period is not yet over.

They are construction firm PT Jaya Real Property, trading and distribution company PT Multi Indocitra, coal mining company PT Bumi Resources, mining service company PT Perdana Karya Perkasa and food firm PT Indofood Sukses Makmur.

"We will question the other five if they fail to buy back their shares as planned," Anis said.

Anis added printing company PT Jasuindo Tiga Perkasa has asked for an extension to its buyback period.