KONTAN.CO.ID - JAKARTA. PT Mandala Multifinance Tbk (MFIN) or Mandala Finance has responded to the Indonesia Stock Exchange's (IDX) move to suspend MFIN shares from trading on October 31, 2024.

Mandala Finance Managing Director Christel Lesmana explained that MFIN shares were suspended by the IDX to maintain market stability and avoid volatility due to circulating information.

"Therefore, Mandala Finance respects this decision and will continue to coordinate with the IDX regarding the next steps," Christel told Kontan.co.id, Friday (8/11).

Christel said that Mandala Finance will provide the public with the latest information regarding the distribution of bonus shares in accordance with applicable provisions. He also said that Mandala Finance will conduct a re-evaluation.

"Thus, the implementation of the distribution of bonus shares will not be carried out in accordance with the information that has been previously announced, until further information in accordance with applicable laws and regulations," he said.

In addition, he emphasized that regarding the suspension of MFIN shares, there was no material impact on operational activities, financial conditions, or the continuity of the company's business.

For this reason, MFIN continues to operate as usual and continues to be committed to serving the interests of all stakeholders.

Furthermore, he said that until now, MFIN's financial condition is still in a healthy condition. This is reflected in the company's profit which reached IDR 403.181 billion in October 2024.

Christel said that MFIN's performance until October 2024 also showed positive growth with total financing distribution growing by 18% compared to the same period in the previous year.

"We also continue to strive to maintain the Non-Performing Financing (NPF) level below the financing industry average, which is 2.3% in October 2024," he said.

According to him, with the NPF condition still safe because it is below the average for the multifinance industry, it means that the quality of Mandala's financing portfolio remains stable and well maintained.

Also Read: Mandala Finance Considers Increased Financing Potentially Increases Bad Debts

Previously, the IDX announced a temporary suspension of trading in Mandala Finance securities. In its letter, the Exchange stated that the suspension was carried out considering OJK Letter number S-1636/PM.211/2024 dated October 29, 2024 concerning the Decision of the Extraordinary General Meeting of Shareholders (EGMS) of Mandala Finance regarding the plan to increase issued and paid-up capital through the distribution of bonus shares.

The OJK has stated that the decision of the EGMS results on October 14, 2024, regarding the approval of the distribution of bonus shares originating from the capitalization of the company's retained earnings as of December 31, 2023, cannot be implemented because it does not comply with the provisions of Article 8 of OJK Regulation (POJK) Number 27/POJK.04/2020 concerning bonus shares.