Revision Of NKE Financial Report Questioned By Shareholders: OJK And IDX Asked To Completely Investigate

Illustration. (Photo: Doc. Antara)

JAKARTA - The revision of the Financial Statements of PT Nusa Konstruksi Enjiniring Tbk (NKE) Quarter I 2023 from the previous loss to profit, was questioned by a number of shareholders. Shareholders asked the Financial Services Authority and the Indonesia Stock Exchange to thoroughly investigate a number of irregularities in the financial report because it has the potential to harm minority shareholders, creditors and potential investors.

This was revealed at the NKE General Meeting of Shareholders (GMS) which was held at the NKE Headquarters at ITS Tower, Jakarta, Thursday, June 22.

Andi LM, one of the GMS participants, said that on April 28, 2023, NKE submitted the Financial Statements of the First Quarter to the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX). In the report, NKE posted a net loss of IDR 5.22 billion.

However, on May 25, 2023, NKE with the stock code DGIK revised the Financial Statements Quarter I and recorded a net profit of IDR 5.12 billion, an increase of 198 percent. The Financial Statements of NKE Quarter I 2023, both before and after the revision, have been published on the IDX's official website.

In his explanation to OJK and IDX, NKE President Director Heru Firdausi Syarif said the change was due to an increase in the inventory value of IDR 5.4 billion and an advance of IDR 4.9 billion. Adjustments must be made to meet applicable accounting standards.

According to Andi, the reason the above NKE Board of Directors violated the Macthing Cost Against Revenue Accounting Principle as stated in the Financial Accounting Standard Statements (PSAK) 14 and 72. Due to the increase in the value of inventory and down payment, it did not come from the addition of availability and down payment, but because the NKE Board of Directors allegedly delayed recording the costs that should have been recorded in the first quarter of 2023.

Allegations of delaying recording these costs, said Andi, made NKE seem like a profit, even though it was a loss. Therefore, OJK and IDX should have examined the Financial Statements of NKE Quarter I 2023 because it has the potential to harm majority shareholders, creditors and prospective investors.

"Financial reports that are prepared not in accordance with accounting principles can result in minority shareholders, creditors and potential investors being wrong in making investment and financing decisions," said Andi.

If that happens, Andi continued, then the Board of Directors of Public Companies can be subject to sanctions in accordance with Law Number 8 of 1995 concerning the Capital Market.

Meanwhile, Ester Septima, another NKE minority shareholder who was met after the GMS, also doubted the truth of the information and material facts in the Revision of the NKE Financial Report. For example, NKE's gross profit recognition of 26.8 percent is very unusual.

That figure is far above the average gross profit of the construction industry which is in the range of 10-15 percent. Such as PT Total Bangun Persada TBK which only recorded a gross profit of 15.25 percent and PT Adhi Karya Tbk of 12.49 percent.

In addition, continued Ester, the acquisition of NKE's new contract is also very minimal. Meanwhile, the current contract (carry over) also remains small. At least this work contract is clearly visible in the Note Number 29 of the NKE Financial Report.

"This is a big question mark for us minority shareholders, how can NKE record a very large gross profit amid the lack of work contracts," said Ester.

In line with Andi, Ester also asked OJK and IDX to immediately examine the Revision of the NKE Financial Report in the first quarter of 2023. The results of the OJK and IDX examinations must also be immediately submitted to the public and all shareholders.

"All irregularities that have the potential to mislead information in the capital market industry should be thoroughly investigated by OJK and IDX," said Ester.