JAKARTA (Yosefardi) – The Indonesia Stock Exchange (IDX) opts not to halt trading in shares of PT Cipaganti Citra Graha Tbk (CPGT), transportation services unit of Cipaganti Group, though the company is now facing serious problem namely fraud allegation.

West Java regional police (Polda) has recently arrested 3 executives of the company for fraud against 8700 partners with total loss of Rp3.2 trillion.

IDX explains that the scandal occurs on cooperative entity which is managed separately by Cipaganti.

Cipaganti, in a disclosure to the Indonesia Stock Exchange (IDX) Tuesday (June 24), said as its financial activity is separated from cooperative’s financial activity, then the case would not impact on its financial condition and projection.

The company will in near term hold shareholders meeting for appointing new management for the sake of the company’s going concern.

At 10.22 am Jakarta time, CPGT gained 3.7% to Rp56 per share.