Indonesia's Financial Services Authority (Otoritas Jasa Keuangan/OJK) has imposed administrative sanctions and enforcement orders in three capital market violation cases involving stock manipulation, misleading financial statements, and misuse of customer securities accounts (04/11).

The sanctions cover stock trading activities involving PT Panorama Sentrawisata Tbk (PANR), financial reporting violations by three directors of PT Bintang Oto Global Tbk (BOGA), and violations committed by Lianiwati, a former licensed Securities Broker Representative (Wakil Perantara Pedagang Efek/WPPE).

The measures form part of OJK's ongoing efforts to strengthen capital market supervision, improve market discipline, and protect investors. OJK stated that enforcement is intended to ensure securities trading operates in an orderly, fair, efficient, and integrated manner.

OJK Imposes Sanctions Over PANR Stock Market Manipulation

OJK found violations in PANR share trading between September 6, 2022, and May 29, 2023, involving Satrijanto Tirtawisata, Melani, and Upita Amalia.

The investigation identified violations of Articles 91 and 92 of Law No. 8 of 1995 on the Capital Market, as amended by Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector.

According to OJK, the parties were involved in trading patterns intended to create a false or misleading picture of market activity and influence PANR share price formation.

The investigation also identified communications between the parties aimed at maintaining PANR share price movements. The trading patterns involved 20 customer accounts suspected of being connected to the activities and did not reflect genuine supply and demand.

OJK calculated that the unlawful gains generated from the trading activities amounted to Rp5,073,291,914.

Based on its findings, OJK ordered Satrijanto Tirtawisata to return the full amount of unlawful gains. Meanwhile, Melani and Upita Amalia were each prohibited from conducting activities in the capital market, derivatives finance, and carbon exchange sectors for five years.

OJK also ordered securities companies to close 18 securities accounts identified as having been used in the trading activities under investigation.

The account closure orders involved several securities companies, including PT Artha Sekuritas Indonesia, PT Waterfront Sekuritas, PT Indo Premier Sekuritas, PT MNC Sekuritas, PT Mirae Asset Sekuritas, PT Sucor Sekuritas, and other securities firms.

OJK stated that transactions designed to create false market activity or manipulate securities prices constitute serious violations. Such practices can undermine fair price formation and reduce investor confidence in the capital market.

BOGA Directors Fined Rp2.475 Billion Over Misleading Financial Statements

In a separate case, OJK imposed administrative fines on three directors of PT Bintang Oto Global Tbk (BOGA) for violations involving the company's financial statements covering the 2017–2020 period.

The directors were Arif Andi Wihatmanto, Yayan Heryanto, and Hendricus A. Hormein, who signed the company's financial statements during the period.

OJK's investigation found inaccurate and misleading information concerning the recording of advances in BOGA's financial statements. The reported information did not reflect the actual conditions regarding the use of funds obtained through the company's Initial Public Offering (IPO).

OJK determined that the presentation of inaccurate and misleading information in financial statements submitted to the regulator violated Article 107 of the Capital Market Law, as amended by Law No. 4 of 2023.

Each director received an administrative fine of Rp825 million, bringing the total fines to Rp2.475 billion.

OJK stated that directors of publicly listed companies are responsible for ensuring the accuracy, completeness, and reliability of information disclosed to the public.

The regulator also emphasized that accurate disclosure is important for investment decision-making and maintaining investor confidence in Indonesia's capital market.

OJK Bans Lianiwati from Capital Market Activities for 10 Years

OJK also imposed a 10-year prohibition on Lianiwati, a former holder of a Securities Broker Representative (WPPE) license numbered KEP-1365/PM.212/PJ-WPPE/2018, which expired on November 18, 2020.

Based on its investigation, OJK found that Lianiwati had falsified customer portfolio reports and carried out stock sale transactions without instructions from customers.

The violations included falsification of customer portfolio reports under Article 107 of the Capital Market Law, as amended by Law No. 4 of 2023.

OJK also identified violations of the provisions governing securities transactions conducted on behalf of customers without their instructions, as well as integrity requirements under Article 14, paragraph (1), of OJK Regulation No. 20/POJK.04/2016.

After considering the nature and seriousness of the violations and the investigation findings, OJK ordered Lianiwati to refrain from conducting activities in the capital market, derivatives finance, and carbon exchange sectors for 10 years.

OJK emphasized that individuals working in the capital market, particularly those authorized to manage or execute customer transactions, must uphold integrity, professionalism, regulatory compliance, and the protection of customer assets and interests.

OJK Continues Efforts to Strengthen Capital Market Supervision

OJK stated that the administrative sanctions and enforcement orders are part of its ongoing efforts to strengthen supervision and improve the effectiveness of capital market law enforcement in Indonesia.

The regulator said enforcement decisions are made consistently, objectively, and proportionately based on investigation findings, the seriousness of violations, their impact, the responsibilities of the parties involved, and investor protection considerations.

OJK also stressed that it would not tolerate market manipulation, misleading information, abuse of authority, or other activities that could harm investors and undermine capital market integrity.

The regulator said enforcement measures are intended not only to penalize violations but also to strengthen market discipline, improve accountability among market participants, and prevent similar violations from happening again.

OJK will continue improving the supervision of securities transactions, the quality of information disclosure, and governance practices among publicly listed companies and securities firms.

The regulator will also strengthen coordination with Self-Regulatory Organizations (SROs) and other relevant parties to detect, prevent, and take action against capital market violations.

OJK urged all market participants to comply with applicable laws and regulations, implement good corporate governance, and prioritize integrity and investor protection in their business activities and securities transactions.

PHOTO: OJK

This article was created with AI assistance.

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