Police, Bapepam join forces to prevent crime

JAKARTA (JP): National Police and the Capital Market Supervisory Agency (Bapepam) agreed yesterday to jointly investigate crimes in the local stock markets.

A memorandum of understanding was signed by National Police chief Gen. Dibyo Widodo and Bapepam's chairman I Putu Gede Ary Suta, with Minister of Finance Mar'ie Muhammad overseeing the event.

Dibyo said the memorandum was aimed at convincing the market that the authorities would act in unison to enforce the law.

"It is expected that the involvement of police to uphold the law and regulations in the market could convince foreign investors that they can do business here safely."

He said it was vital for police and the agency to ensure investors had a strong legal standing.

Police officers will act as the coordinators and supervisors of agency interrogators who investigate alleged violations of market law.

Under the memorandum, the agency can ask police to hunt down, arrest and detain any party which is believed to have committed a crime in the market.

The police will also provide assistance in the agency's internal inquiries and train staff in the procedures of criminal investigation, especially economic-related crimes.

In return, the agency will allow its experts to help police improve the latter's capability in investigating crimes related to stock market activity. The capital market will be included in the police academy's curriculum.

Minister Mar'ie said the stock market, like banks, should maintain its credibility to foster investor confidence.

"If a capital market has no credibility, it is finished."

But the minister urged those involved in the market to follow the market rules and avoid violations.

"In order to stick to the rules of the game, we need law enforcement."

Mar'ie also warned personnel, who would be in charge of implementing stock market rules, not to abuse their position.

"You know the basic characteristic of bureaucrats all over the world is to take advantage of the powers given to them.

"Therefore I ask officials (at Bapepam) to act proportionally in enforcing the law in the capital market."

Putu said there had yet to be a crime uncovered in the capital market and, so far, investors had followed market rules and felt secure to make investment.

"But, this is a an anticipatory move to ensure people in the capital market stick to the capital market rules," he said. (aly/cst)