Police, Bapepam join forces to prevent crime

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)