PRESIDENT ORDERS STATE COMPANIES TO BUY BACK SHARES IN STOCKS MARKET

Jakarta, Oct 9 (ANTARA) - President Susilo Bambang Yudhoyono has ordered a number of state-owned enterprises (BUMN) to buy back their shares at the Indonesian Stocks Exchange (BEI) in an effort to restore confidence in the BEI.

"BUMNs which have enough funds are ordered to buy back their shares," State Minister for BUMN Sofyan Djalil, who is also interim minister for finance, said at the wee hours on Thursday.
The minister made the remark after a meeting with President Yudhoyon at the Presidential office to discuss the temporary suspension of the Indonesian stock market on Wednesday due to the on-going financial crisis in the United States.
Sofyan said that BUMNs which were instructed to buy back their shares in the stock market included PT Semen Gresik, PT Bukit Asam, PT Timah, PT Aneka Tambang and PT Perusahaan Negara (PGN).
"PT Telkom has implemented the program," the minister said.
He said that in order to carry out the buy-back program, his ministry would coordinate with the Capital Market Supervisory Board (Bapepam).
The coordination is intended to allow Bapepam to ease its regulation and shorten the issuance of a license for a buy-back from 30 days to seven days.
"We will discuss it so that Bapepam would draw up a special rule which will allow an extra-ordinary shareholders' public meeting to be held without the need to wait for 30 days," he added.
In the meeting which was also attended by executives of BUMNs and Bank Indonesia (BI/the central bank), the president also asked all BUMNs to carry out financial sector polices based on the program laid down by the government.
"Thus, BUMNs would not conduct speculative foreign exchange buying because to buy one they have to coordinate with BI and the BUMN ministry," Sofyan said.
On Wednesday evening, the president held a limited cabinet meeting to discuss a temporary suspension until Thursday of the BEI.
Vice President Jusuf Kalla, bankers and BEI leaders also attended the meeting.