The Indonesia Stock Exchange (IDX) on Tuesday summoned the management of PT Kawasan Industri Jababeka on Tuesday to explain a reported default risk over notes issued by Jababeka International BV, a subsidiary of the company.

IDX assessment director I Gede Nyoman Yetna said the meeting between the IDX and the Jababeka management was to seek clarification from the management about the report.

Previously, the IDX had suspended Jababeka’s shares to allow the management to explain the situation at the company.

As quoted by kontan.co.id, Nyoman called on investors to wait for the result of the meeting between the IDX and Jababeka management about the matter before taking any measures.

In its report to the IDX, Jababeka management said the default risk occurred following a change in the board of directors and board of commissioners decided in a shareholders meeting in late June.

Because of the change, Jababeka, whose property project is located in Cikarang, West Java, was required to buy back the notes worth US$300 million. “If the company fails to buy them back, Jababeka International B.V. will be in default status,” according to Jababeka management in the report.

Previously, Jababeka president director Budianto Liman said a number of directors considered that they had been victims of the shareholders meeting in which PT Imakota Investindo, which held 6.39 percent of shares, and Islamic Development Bank, which held 10.84 percent of shares, agreed apparently in concert to appoint Sugiarto as the new president director. (bbn)