KPK Targets Sneaky Schemes in the Capital Market

The KPK is beginning to target fraud in the capital market. The KPK is urging actors in the capital market industry to make improvements. This was conveyed by the Director of Community Participation Development (Permas) of the KPK, Kunto Ariawan, during an anti-corruption socialisation on Friday (17/4/2026). He stated that fraudulent schemes range from market manipulation (pump and dump) to the misuse of customer fund accounts (RDN) that disadvantage investors. “In cases of misuse of customer funds or securities, there are practices of using customer fund accounts without permission, even selling customers’ shares without valid instructions,” Kunto said in a written statement on Monday (20/4/2026). Kunto mentioned that the fraudulent schemes frequently encountered by the KPK include market manipulation. He said that practices such as excessive transactions for commissions (churning), engineering closing prices (marking the close), as well as market manipulation through fictitious transactions and the spread of false rumours that potentially harm investors and damage public confidence in the capital market, also often occur. The KPK noted there are fraud practices such as promising guaranteed profits on risky stock instruments. He said there are also parties who deliberately hide material facts about issuers. He emphasised that the private sector must participate in preventing corrupt practices. “Corruption prevention in the private sector focuses on building systems that are self-assessing, practical, and adaptable to the size and capacity of corporations,” he stated. The KPK, he said, has programmes to strengthen the private sector’s role in eradicating corruption. Based on KPK data, out of 1,827 corruption cases since 2004 up to the first quarter of 2026, 1,132 or 62% involved gratuities and bribery. “With synergy between regulators, business actors, and society, the KPK is optimistic that Indonesia’s capital market sector and business world can grow healthily, transparently, and free from corruption,” he said.