OJK Raids Mirae Asset Office, Probes BEBS IPO Manipulation
The Financial Services Authority (OJK) conducted a search of the office of PT Mirae Asset Sekuritas Indonesia (MASI), located in the Sudirman Central Business District, Jakarta, on Wednesday. This is part of the law enforcement process into alleged criminal acts in the capital market, specifically relating to an initial public offering (IPO).
Ismail Riyadi, Head of the Department for Literacy, Financial Inclusion and Communications at OJK, explained that the raid by OJK investigators was carried out in the context of developing the investigation into alleged manipulation of material information.
These acts are said to violate Article 104 in conjunction with Article 90 subsidiarily Article 107 of Law Number 8 of 1995 on the Capital Market, relating to the failure to report affiliated parties receiving fixed allotments in an IPO.
‘As well as the submission of IPO use-of-funds reports that do not reflect actual conditions. The alleged manipulation of these reports and information is believed to involve the securities firm,’ he said in an official statement on Wednesday (4/3).
Additionally, investigators uncovered alleged fictitious transactions as regulated by Article 104 in conjunction with Article 91 of Law Number 8 of 1995 on the Capital Market, involving inter-party related-party transactions among seven corporate entities, and 58 individual nominee entities, executed by six operators under the control of the suspects.
‘The sequence of transactions, Ismail continued, is alleged to have caused the share price of PT Berkah Beton Sadaya Tbk (BEBS) on the regular market to rise significantly by up to around 7,150%.’
‘The suspected capital market crime occurred between 2020 and 2022 and is alleged to involve ASS as the beneficial owner of PT BEBS,’ he explained.
‘The case also involves MWK as former Director of Investment Banking at PT MASI, as well as the corporation PT MASI, with modus operandi including insider trading, IPO manipulation, and fictitious transactions.’
During the investigation, OJK investigators have questioned 25 witnesses, including from PT MASI, PT BEBS, banks, nominee entities, and other related parties.
OJK emphasises that in handling crimes in the financial services sector, OJK consistently coordinates and collaborates with the District Court as well as Korwas PPNS Bareskrim Polri.
Enforcement is conducted consistently and continuously as part of OJK’s commitment to upholding the integrity of the financial services sector, protecting investors’ and the public’s interests, and ensuring confidence in the national financial system remains intact.