Market Disappointed at State Gas Company
Tuesday, 16 January, 2007 | 16:04 WIB

TEMPO Interactive, Jakarta: Players and analysts of the capital market acknowledged being dissatisfied over the explanation of PT Perusahaan Gas Negara Ybk (State Gas Company). The management was viewed as not transparent enough when giving a statement on the company's share price decrease by 23.3 percent to Rp7,400 per share, on Friday (01/12).

In addition, according to the analysts, the company's management did not clarify in detail as regards delay of the gas transmission pipeline project of South Sumatera to West Java.

“PGN did not explain how the delay of the project affected the company's revenues in 2007. They only told of the revenues in 2006. Who will pay attention to it?” said Managing Director of PT Danareksa (Persero) Lin Che Wei after a PGN meeting with analysts yesterday (01/15) in Jakarta.

As the guarantor of PGN that was issued in 2006, Che Wei said he was disappointed with this transparent state company. “I feel like not giving any answers,” he said. “The situation will seriously affect investors' confidence.”

Managing Director of PGN Sutikno denied if there was manipulation to hide information. The reason was that even the new management knew a project delay occurred on 18 December 2006—after a two-week general assessment was conducted since 5 December. “When the investigation team gave concrete results, we decided on 26 December that the project will be delayed for two months,” he said.

Managing Director of the Jakarta Stock Exchange (JSX) Erry Firmansyah said that, after examining PGN's statement, “There was not any manipulation.”

In Erry's opinion, the delay of information was actually delivered to JSX. In addition, the company assured that the delay will not hamper gas sales this year.

WAHYUDIN FAHMI