OJK Firmly Addresses Stock Price Manipulation, Vows Continued Investigations
Jakarta (ANTARA) - The Financial Services Authority (OJK) has emphasised that it will not stand idly by regarding allegations of stock price manipulation, continuing to conduct examinations and investigations while ensuring the results are published transparently to the public.
This was stated by the Executive Head of the Capital Market, Derivatives, and Carbon Exchange Supervisory Unit (PMDK) of OJK, Hasan Fawzi, in response to concerns from members of the House of Representatives’ Commission XI about suspected stock price engineering, including unjustified rapid price surges.
Hasan, when met by reporters after the Working Meeting of Commission XI of the House of Representatives in Jakarta on Wednesday, assured that his side would further probe the allegations, but stressed that indications of manipulation are evident from rapid price increases without clear reasons or sharp declines after reaching a peak.
“One of the main indications (of stock price manipulation) is certainly a rapid rise without any reason, or conversely, suddenly dropping after rising to the peak without reason. That is an initial indication. And of course, we will not remain silent,” said Hasan.
He explained that the handling process is carried out in stages, starting from examinations to evidence gathering. Several cases that have been announced previously, said Hasan, also stemmed from similar indications with handling conducted in stages.
Once the examination is complete, the evidence is deemed sufficient, and the basis for violations and relevant articles are met, OJK will impose sanctions in accordance with regulations and publicise them to the public.
Regarding questions from Commission XI members about indications of a company’s stock price surging from Rp200 to Rp8,000 within three months, Hasan assured that his side has conducted tracing.
In the last one to two months, clarified Hasan, the authority has also enforced the law and imposed sanctions on issuers and related parties involved in price manipulation, dissemination of false information, and coordinated trading practices.
“If you look at (previous capital market cases where OJK has announced sanctions), the phenomena or characteristics roughly reflect the concerns of the leaders in the members of Commission XI. We certainly will not hesitate to impose and enforce the law,” said Hasan.
During the question-and-answer session at the Working Meeting on Wednesday (1/4), Commission XI member Melchias Markus Mekeng highlighted previous regulations that allowed a minimal portion of shares to be floated to the public (free float), thus opening room for price engineering in the market.
He stated that such conditions often involve collaboration with securities parties, including underwriters, which then form a kind of syndicate to control stock price movements in the market.
Such practices, emphasised Mekeng, damage the price formation mechanism that should reflect the fundamentals and performance of the company.
He also mentioned stocks that newly listed on the exchange at Rp200 but surged to Rp8,000 in just two to three months, which he deemed unreasonable.
Furthermore, Mekeng warned of the potential subsequent impacts from such price surges, where the company’s market capitalisation can increase sharply and be used as collateral to obtain large loans from banks.
This condition is seen as carrying double risks because it not only potentially damages the capital market but also spills over into the banking sector.
He questioned OJK’s supervisory role regarding the phenomenon, including whether there are systems or mechanisms capable of detecting abnormal stock price movements early on.
Mekeng also stressed the importance of proactive steps from OJK while urging the institution to be firm and transparent in law enforcement.