Firms in exploration stage encouraged to go public
Thursday, January 5 2012 - 02:53 AM WIB
Stock market regulator is drafting a regulation that will allow extractive firms - be it in the oil and gas sector, coal and minerals - to go public even when they are still in the exploration stage.
Listing Director at the Indonesia Stock Exchange (IDX) Edy Sugito said that he was hopeful that the regulation would soon be introduced and eventually provides an opportunity for those firms to tap public funds to bolster their operations.
"The clause that regulates the listing of firms that are still in exploration stage has been incorporated in the draft. It?s still under discussion at the Bapepam (Capital Market and Financial Institutions Supervisory Agency). We expect the regulation to be in effect soon," Edy said.
Commenting on calls to standardize public reports on natural resources and reserves of coal and minerals under the so-called CODE KCMI, Edy said he would have no problem with that as long as it did not run counter to any existing regulation.
KCMI is basically the Indonesian version of JORC (Joint Ore Reserves Committee) Code, which is the widely-used Australasian Code for reporting of exploration results, mineral resources and ore reserves, launched in September 2011.
Editing by Dadan Wijaksana