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Cipaganti shares will not be suspended: IDX
The Indonesian Stock (IDX) has said it will not suspend the trading of car rental company Cipaganti Citra Gantiâs shares following the detention of its president director on alleged embezzlement charges
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T
he Indonesian Stock (IDX) has said it will not suspend the trading of car rental company Cipaganti Citra Ganti's shares following the detention of its president director on alleged embezzlement charges.
The IDX' director for listing companies, Hoesen, said that the stock market operator would not take any action against Cipaganti regarding its legal issue, as the company had immediately informed the bourse about the case and published the required statement.
Hoesen added that as long as the company's operations were not disrupted by the case and the case did not implicate the company, the legal charges would not be the bourse's concern.
'Cipaganti has ensured investors that the company and the cooperative are not financially affiliated. The cooperative holds about 10 percent of the company's shares and that's as far as they are linked,' Hoesen said.
'Its financial reports show nothing peculiar so, unless the case impacts the company's performance on the stock market, we will not take any action against it.'
The firm's president director, Andianto Setiabudi, along with president commissioner Julia Sri Redjeki and commissioner Yulinda Tjendrawati Setiawan, were detained by the West Java Police on Monday. The three were arrested for suspected fraud and the alleged embezzlement of Rp 3.2 trillion in cooperative Koperasi Cipaganti Karya Guna Persada, following a report from business partners who invested money in the cooperative but never received the promised returns.
On Tuesday, shares of Cipaganti dropped by 26.3 percent compared to the previous day's closing session, and continued to drop by 8.47 percent on Wednesday.
