IPPE Penalised Rp 4.6 Billion for Misrepresenting IPO Assets
JAKARTA – The Financial Services Authority has imposed an administrative penalty of Rp 4.625 billion against PT Indo Pureco Pratama Tbk for violations in the capital markets.
M. Ismail Riyadi, Head of the Literacy, Financial Inclusion and Communication Department at the OJK, stated that the company had misrepresented the balance of assets from Initial Public Offering proceeds, which were allocated as advances for factory building and machinery.
“For the error in presenting asset balances in the form of advances for factory building and machinery derived from IPO proceeds of PT Indo Pureco Pratama Tbk,” said Ismail in an official statement on Saturday, 28 February 2026.
“Since these did not provide future economic benefits to be recognised as assets,” Ismail added.
Other violations concerned the obligation to disclose information. PT Indo Pureco was found to have failed to convey material facts to the OJK and did not announce material information or facts relating to the cessation of operational activities.
“(Violation of) Article 6 in conjunction with Article 2 Paragraph (1) of POJK 31/POJK.04/2015,” said Ismail.
The OJK also imposed a fine on Najiburrahman Awali, Director of PT Indo Pureco for the period 2021 to 2023, of Rp 840 million as joint and several liability. Responsibility for the inconsistency of the factory building and machinery advance assets from IPO funds was deemed to be jointly borne.
“Administrative penalties in the form of fines of Rp 840 million are imposed,” Ismail stated.
He was found to have violated Article 66 Paragraph 1 of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector in conjunction with Articles 21(c), (d), and (e) of POJK Number 9 of 2023 concerning the Use of Public Accountant Services and Public Accounting Firms in Financial Services Activities.
“Mr Ben Ardi did not apply public accountant professional standards in the implementation of audit services for the 2021 and 2022 annual financial reports of PT Indo Pureco Pratama Tbk,” he said.
The auditor of the 2023 annual financial report, Rizki Damir Mustika, was also fined Rp 265 million for similar reasons.
The Public Accounting Firm Jamaludin, Ardi, Sukimto and Partners was penalised Rp 525 million.
“(Because it) did not apply quality control standards in the implementation of audit services for the 2021, 2022, and 2023 annual financial reports of PT Indo Pureco Pratama Tbk,” Ismail emphasised.