OJK imposes 1,277 sanctions over capital market regulation violations

The Financial Services Authority (OJK) will continue to take firm action in accordance with its authority. The OJK has imposed 1,277 administrative sanctions, prohibitions, and/or written orders on issuers, public companies, capital market supporting professionals, and/or other related parties for violations of capital market regulations and breaches of reporting compliance.

“OJK will continue to take firm action according to the authority it possesses to encourage industry compliance, as well as to provide a deterrent effect against parties committing violations, so that the Indonesian capital market can operate in an orderly, fair, efficient, and high-integrity manner,” said Agus Firmansyah, Head of the Surveillance and Integrated Financial Services Sector Policy Department at OJK, in an official statement in Jakarta on Monday.

Based on the results of ongoing supervision and examinations in the capital market sector, OJK has issued 93 administrative sanctions, prohibitions, and/or written orders for capital market regulation violations. These include administrative sanctions in the form of fines totalling Rp73.99 billion, eight written warnings, five written orders, ten prohibitions, and six licence suspensions.

Agus explained that these actions were directed at issuers, boards of directors, and boards of commissioners of issuers, securities companies acting as underwriters, directors of securities companies, public accountants, accounting firms, shareholders of issuers, controlling shareholders of issuers, and/or other parties responsible for the violations.

The violations serving as the basis for these sanctions include issues related to the flow of funds from public offerings, the allotment process of initial public offerings (IPOs), the presentation of financial statements, the auditing of financial statements by public accountants, and the obligation to transfer shares resulting from share buybacks.

“Furthermore, violations occurred regarding affiliated transactions, conflict of interest transactions, material transactions, the convening of Annual General Meetings of Shareholders (AGMS), the process of appointing public accountants and/or accounting firms, information disclosure obligations, and issuer governance,” said Agus.

Additionally, based on monitoring of reporting compliance by issuers, public companies, and other related parties, OJK has imposed 1,184 administrative sanctions with total fines amounting to Rp253.07 billion, as well as 304 written warnings.

These administrative sanctions were issued due to delays in submitting reports, with the following details:

• Delays in submitting periodic reports: 876 administrative sanctions with total fines of Rp243.33 billion and 126 written warnings.

• Delays in submitting incidental reports: 91 administrative sanctions with total fines of Rp7.87 billion.

• Delays in submitting governance-related reports: 209 administrative sanctions with total fines of Rp1.83 billion and 178 written warnings.

• Delays in reports from Capital Market Supporting Professionals: 8 administrative sanctions with fines totalling Rp32.3 million.