Under MSCI Spotlight, Indonesia Stock Exchange Tightens Supervision on Share Manipulation

The Indonesia Stock Exchange (BEI) has affirmed it is continuously improving its trading infrastructure and regulatory enforcement, following the latest review results from MSCI. BEI Acting President Director Jeffrey Hendrik stated that the exchange hopes supervision of share transactions in the capital market can become more effective, thereby suppressing share price manipulation practices. “Going forward, supervision is expected to be more effective, so that notes related to manipulation and orchestrated trading will be handled better. On the other hand, we will continue to maintain market liquidity well,” Jeffrey explained at the BEI Building in Jakarta on Friday (19/6/2026). In line with this, Hasan Fawzi, Chief Executive of Capital Market, Derivative Finance, and Carbon Exchange Supervision at the Financial Services Authority (OJK), said a smart surveillance system has now been implemented for shares suspected of price manipulation. “The Indonesia Stock Exchange has limitations; they can only reach their members but have difficulty reaching the investors. The immediate action we intend provides room for the Indonesia Stock Exchange (BEI) supervisor to even take swift action whenever an indicator exceeds the parameters in its surveillance system,” he stated after being met at the CNBC Market Outlook 2026 event at the BEI building in Jakarta on Tuesday (3/3/2026). Hasan elaborated that the BEI can directly contact and instruct exchange members to further investigate the motives and ultimate beneficial owners of investors who trigger alerts. This step is called Extended Due Diligence (EDD). “So it can truly be known whether the investor is genuine or not, what the motive is, whether there is an indication of price manipulation, or if there is a nominee, for instance, where the investor is being used by another person for the purpose of price manipulation,” he revealed. Hasan mentioned that this immediate action is expected to anticipate the possibility of further share price manipulation or prevent it from going too far and claiming victims. “So we do not wait for the examination results first, if it can be done immediately,” he added. Furthermore, in the medium term, there is strict supervisory action through unusual market activity (UMA) designations for shares moving abnormally. “UMA is a good mechanism to curb trends or, let’s say, bandwagon market sentiment. If there is an excessive increase that is too rapid, or an excessive decrease that is too rapid, we create a pause by first listing the relevant publicly listed company under that unusual market activity,” he stated. Thus, Hasan said, investors have sufficient time to dig up information related to the significant rise or fall in share prices. Additionally, shares moving abnormally can be subjected to gradual or tiered suspension. “Of course, the final decision remains in the hands of the investor concerned,” he said. Hasan added that these efforts are a response to stop violation practices in the capital market, including price manipulation in share trading.