Thursday, 21 May 2009

BEI to require mining companies to have minimum mineral reserves

The Indonesia Stock Exchange (BEI) is preparing a rule that will require mining companies wishing to be publicly listed to have mineral reserves enough for production over a minimum period of seven years. "The rule is aimed at giving investors a reference before deciding to invest in stocks in the sector. There must be a reference so that investors will not be like buying a pig in a poke," BEI president director Erry Firmansyah said here on Monday. The draft rule for listing in the BEI also contains listing and relisting fee which is set at Rp1 million per Rp1 billion of capitalization with a minimal fee amount of Rp25 million and maximum fee amount of Rp250 million. The current regulation sets the minimal amount of fee at Rp10 million and the maximum amount of fee at Rp150 million.The annual cost of listing meanwhile will be set at Rp500,000 per Rp1 billion of current paid-up capital with a minimum cost of Rp20 million and maximum cost of Rp200 million. Currently the minimum cost is Rp5 million while the maximum cost is Rp100 million.

The cost of listing is set at Rp25 million and no differentiation is made on primary and secondary listing. Currently the cost is Rp15 million for primary listing and Rp10 for secondary listing.BEI`s director of listing Eddy Sugito meanwhile said the rise in the minimum and maximum cost of initial listing and annual cost was reasonable.He said the cost of initial listing and annual cost had never been raised for the past 10 years. "The authorities have never raised the costs since 10 years ago," he said.

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