Observers: Government support to combat illegal gains protects Jakarta stock exchange stability
Jakarta — Government and parliamentary support for the Financial Services Authority’s (OJK) efforts to eliminate illegal profit-taking practices in stock trading is considered crucial for maintaining stability of the Indonesia Stock Exchange’s Composite Index (IHSG) whilst preventing a recurrence of recent market turmoil, according to a financial sector observer.
Financial observer and consultant Elvi Diana said in a written statement in Jakarta on Monday that government and parliamentary support for addressing stock manipulation practices could prevent a repeat of market volatility that occurred recently.
“In this case, adequate support from the government and the parliamentary Commission XI in firmly and thoroughly eradicating this practice, including publicly disclosing it to the public, is very important,” Diana said.
Diana emphasised the importance of capital market oversight reform to prevent stock price manipulation in the future.
According to Diana, transparency and strong government support in addressing violations is key to maintaining the integrity of Indonesia’s capital market.
“The capital market requires strong, transparent supervision that is free from pressure from any party. Without this, investor confidence will be easily disrupted,” she said.
Earlier, PT Mirae Asset Sekuritas Indonesia (MASI) received a visit from the National Police Criminal Investigation Directorate and the Financial Services Authority regarding capital market criminal offences.
OJK Financial Sector Investigation Executive Director Inspector General Pol. Daniel Bolly Hyronimus Tifaona explained that the case occurred between 2020 and 2022 and was already in the investigation stage.
The alleged material fact information manipulation involved the failure to report affiliated parties receiving fixed allotments in initial public offerings (IPOs), as well as submitting IPO fund usage reports that did not match actual conditions. The alleged manipulation is suspected to involve securities firms.
Additionally, OJK investigators also discovered allegations of sham transactions suspected of causing the share price of PT Berkah Beton Sadaya Tbk (BEBS) in the regular market to increase significantly by approximately 7,150 per cent.
Tifaona disclosed that the illegal gains from this insider trading amounted to Rp14.5 trillion.
From this case, two individual suspects have been named: ASS as the beneficial owner of BEBS, MWK as the former Investment Banking Director of PT MASI, and the corporate suspect PT MASI.