OJK Fines Stock Influencer Rp 5.35 Billion for Share Price Manipulation

OJK Fines Stock Influencer Rp 5.35 Billion for Share Price Manipulation Jakarta. Indonesia’s financial watchdog has imposed a Rp 5.35 billion ($316,586) fine on a social media stock influencer for manipulating share prices, underscoring tighter enforcement as regulators seek to strengthen integrity in the country’s capital market. The Financial Services Authority (OJK) said the individual, identified by the initials BVN, was found to have engaged in stock price manipulation — commonly known as “pump and dump” — involving three listed companies during the 2021–2022 period. According to OJK, the violations involved trading in Agro Yasa Lestari, MD Pictures, and Bintang Samudera Mandiri Lines. Regulators said BVN disseminated misleading information on social media platforms about potential price increases or planned corporate actions, while simultaneously trading the same stocks to profit from market reactions generated by followers. The transactions were carried out through multiple securities accounts, creating artificial prices and distorting investment decisions, OJK said. The conduct was deemed to have violated Articles 90, 91 and 92 of the Capital Market Law, as revised under the Financial Sector Development and Strengthening Law (P2SK), which prohibits misleading information, market manipulation, and transactions that create false or deceptive market conditions. “The practices clearly caused market distortion and posed risks to retail investors,” OJK said in a statement. OJK board member Hasan Fawzi, who also serves as acting head of capital markets, derivatives, and carbon exchange supervision, said the sanctions were based on findings that BVN had provided false or misleading information and issued buy or sell recommendations, while executing opposing trades at the same time. “BVN conveyed information that was not accurate and provided recommendations on specific stocks, but at the same time conducted transactions that were contrary to what was shared on social media,” Hasan said. He added that BVN also traded the same stocks through multiple accounts, resulting in prices that were not formed through organic market forces. “This led to artificial trading,” he said. Separate Sanctions Over IMPC Trades In a separate case, OJK also imposed administrative fines on three parties linked to manipulation in trading shares of Impack Pratama Industri during the January–April 2016 period. OJK fined Dana Mitra Kencana Rp 2.1 billion after finding it conducted cross trades involving 17 clients, with matched transactions totaling Rp 43.7 billion. The scheme created trading activity that did not reflect genuine supply and demand, the regulator said. Two other parties, identified as UPT and MLN, were each fined Rp 1.8 billion for similar practices involving 12 clients and matched transactions totaling Rp 49.1 billion. OJK said the trading patterns misled investors and exerted artificial pressure on IMPC’s share price. OJK said the enforcement actions are part of a broader push to reform and strengthen capital market integrity. The regulator pledged to intensify supervision and apply sanctions consistently and proportionately to ensure a fair, orderly and efficient market. “These steps are aimed at ensuring a clean, transparent capital market that protects investors,” OJK said, adding that further enforcement actions may follow. Tags: Keywords: