IDX Announces Potential Delisting of Garuda Shares

TEMPO.CO, Jakarta - The Indonesia Stock Exchange (IDX) announced the potential delisting of state airliner PT Garuda Indonesia (GIAA) shares in a letter of announcement signed on December 20. The announcement came after six months of trading suspension for GIAA.

GIAA was suspended from trading activities on June 18 this year. According to IDX regulations on delisting, the exchange is authorized to delist the share of a listed company under certain circumstances, including the inability to show indications of proper recovery, suffering from conditions with significant impact to business continuity both financially and legally, and if the shares are suspended for at least 24 months.

"Garuda Indonesia shares have been suspended for six months. The suspension period will reach 24 months on June 18, 2023," the announcement said.

In July, the IDX's director of corporate assessment, I Gede Nyoman Yetna, said that the exchange may consider resuming GIAA's trading if the company's businesses show improvements.

Nyoman said that the trading suspension was not a sanction, but a way of protecting GIAA investors.

The suspension was also done to provide GIAA's management with time and opportunity to make repairs to "expedite recovery and repair efforts."

Read: IDX Broker Code Removal Policy Deemed Good for Market Behavior

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