OJK Freezes NH Korindo's Capital Markets Activities Following Bentjok Case
Jakarta — Indonesia’s Financial Services Authority (OJK) has imposed administrative sanctions against PT Nonghyup Korindo Sekuritas Indonesia (PT NH Korindo Sekuritas Indonesia) as a result of the misuse of IPO funds at PT Bliss Properti Indonesia Tbk, which also involved notorious capital markets figure Benny Tjokrosaputro, also known as Bentjok.
NH Korindo has been subjected to administrative sanctions comprising a fine of Rp525 million and a one-year freeze on its licence to operate as an underwriter of securities, effective from the date the sanction was imposed.
For securities underwriting activities related to registration statements already submitted to the OJK before the sanction was imposed, these activities may continue.
PT NH Korindo was sanctioned for allocating share allocations to Kahar Anwar, Francis Indarto, and Yenny Sutanto, who were nominees of Benny Tjokrosaputro, the controlling shareholder of PT Bliss Properti Indonesia Tbk. NH Korindo also allocated shares to Agung Tobing, another nominee of Tjokrosaputro, who placed orders for shares without submitting original share order forms.
PT NH Korindo Sekuritas Indonesia failed to conduct adequate customer due diligence procedures for investors receiving fixed allocations as nominees of Bentjok in the initial public offering of PT Bliss Properti Indonesia Tbk, specifically regarding verification and identification of beneficial owners and the source of funds.
Amir Suhendro Samirin, Director of PT Nonghyup Korindo Sekuritas Indonesia during 2019, was also penalised with a fine of Rp40 million and a one-year prohibition from engaging in capital markets activities.
Fund Flow from IPO
The sanctions were imposed because PT Bliss Properti Indonesia Tbk presented receivables from a related party, PT Bintang Baja Hitam, totalling Rp31.25 billion in the 2019 annual financial report and advance payments to PT Ardha Nusa Utama totalling Rp116.7 billion in the 2019 to 2023 annual financial statements.
These transactions were found to provide no future economic benefit that would justify their recognition as assets of PT Bliss Properti Indonesia Tbk, as the receivables and advance payments were sourced from IPO proceeds that were subsequently diverted to Benny Tjokrosaputro (Rp126.6 billion) and PT Ardha Nusa Utama (Rp116.7 billion).
Ibrahim Hasybi, Director of PT Ardha Nusa Utama, also serves as a member of the Audit Committee of PT Hanson International Tbk, a company also controlled by Benny Tjokrosaputro.
Gracianus Johardy Lambert and Astried Damayanti, who served as Directors of PT Bliss Properti Indonesia Tbk during 2019, were penalised with a fine of Rp110 million each, jointly and severally liable.
Gracianus Johardy Lambert, Basuki Widjaja, and Eko Heru Prasetyo, who served as Directors of PT Bliss Properti Indonesia Tbk from 2020 to 2023, were penalised with a fine of Rp1.95 billion, jointly and severally liable.
Gracianus Johardy Lambert, who served as Chief Executive Officer of PT Bliss Properti Indonesia Tbk from 2019 to 2023, has been prohibited from engaging in capital markets activities for five years.
Chartered Accountant Patricia, a partner at KAP Kanaka Puradiredja, Suhartono at the time of engagement, was penalised with a fine of Rp150 million. Patricia failed to fully apply the Professional Standards for Public Accountants in performing audit services on the 2019 and 2020 annual financial statements of PT Bliss Properti Indonesia Tbk.
The audit indicated deficiencies in internal controls concerning cash disbursement procedures and the unauthorised delegation of cash disbursement authority on the IPO account of PT Bliss Properti Indonesia Tbk to parties other than the Board of Directors. This demonstrated poor corporate governance, a matter flagged by Patricia in the management letter.
Chartered Accountant Helli Isharyanto Budi Susetyo, a partner at KAP Kanaka Puradiredja, Suhartono, was also penalised with a fine of Rp150 million for failing to fully apply the Professional Standards for Public Accountants in performing audit services on the 2021 annual financial statements of PT Bliss Properti Indonesia Tbk.
The OJK has announced that the total fines imposed for violations of capital markets regulations related to PT Bliss Properti Indonesia Tbk amount to Rp5.625 billion.