OJK fines influencer BVN Rp5.35 billion over share price manipulation

Jakarta (ANTARA) — The Financial Services Authority (OJK) has announced a fine totalling Rp5.35 billion against social media influencer BVN for violations involving share price manipulation through the dissemination of information on social media across a number of stock trades during the 2021–2022 period.

“The total sanctions imposed on this influencer amount to Rp5.35 billion. The detailed information regarding the imposition of sanctions was only handed down today,” said OJK Board of Commissioners Member and Acting Head of Capital Markets, Derivatives Finance, and Carbon Exchange Supervision Hasan Fawzi at a press conference at the Indonesia Stock Exchange building in Jakarta on Friday.

Based on the results of OJK’s examination, Hasan explained that BVN was proven to have committed violations in the trading of shares of PT Agro Yasa Lestari Tbk (AYLS) during the periods of 1 to 27 September 2021 and 8 November to 29 December 2021.

Further violations were found in the trading of shares of PT MD Pictures Tbk (FILM) from 12 January to 27 December 2021, and PT Bintang Samudera Mandiri Lines Tbk (BSML) from 8 March to 17 June 2022.

Hasan explained that the actions involved the use of several nominee securities accounts, resulting in the formation of abnormal share prices that were not based on genuine buying and selling forces in the market, nor consistent with fair market mechanisms.

“This is categorised as stock trading manipulation,” said Hasan.

For context, a nominee securities account is a share or investor fund account registered under the name of another person or party (the nominee) in legal terms, whilst the actual beneficial owner is a different party.

In addition, BVN disseminated information via social media regarding one or more stocks, communicated plans to purchase shares, or conveyed forecasts of particular share price movements.

However, at the same time, BVN was conducting sales or purchases of shares by exploiting followers’ reactions to the information he had shared.

On the basis of these findings, OJK concluded that BVN was proven to have violated Article 90 of the Capital Markets Law as amended by Article 22 point 33 of the Financial Sector Development and Strengthening Law (UUPPSK), and Article 91 of the Capital Markets Law as amended by Article 22 point 34 of the UUPPSK.

Furthermore, Article 92 of the Capital Markets Law as amended by Article 22 point 35 of the UUPPSK was violated in relation to the trading of shares of PT Agro Yasa Lestari Tbk (AYLS) during the periods of 1 to 27 September 2021 and 8 November to 29 December 2021, shares of PT MD Pictures Tbk (FILM) from 12 January to 27 December 2021, and shares of PT Bintang Samudera Mandiri Lines Tbk (BSML) from 8 March to 17 June 2022.