The Financial Services Authority (OJK) has announced the formation of a special task force dedicated to tackling the issue of manipulated stocks, often referred to as “gorengan saham” in the Indonesian market. This announcement was made by Inarno Djajadi, Chief Executive Supervisor of Capital Markets, Financial Derivatives, and Carbon Exchange at OJK.
According to Djajadi, the government is committed to strengthening oversight of stock trading practices that have the potential to create price distortions or engage in market manipulation. These practices, commonly known as stock manipulation, are a key area of concern for the OJK.
“The OJK, together with the Ministry of Finance, the Indonesia Stock Exchange (IDX), Self-Regulatory Organizations (SROs), KPEI, and KSEI, has formed a cross-institutional task force primarily focused on deepening the market,” Djajadi explained in Bali on Saturday, November 15th. “However, one of its key functions is to enhance law enforcement.”
Concerns surrounding the prevalence of manipulated stocks were previously raised by Finance Minister Purbaya Yudhi Sadewa. He urged the IDX and OJK to penalize capital market players engaged in manipulative practices, specifically those involved in inflating stock prices.
Sadewa expressed his hope that within the next year, numerous individuals found guilty of stock manipulation will face sanctions from both the IDX and OJK.
“If it’s just cleaning up for a year. Meanwhile, I can see shares being manipulated; I also observe the stock market, there are those manipulating, some of whom I know,” said Sadewa, who attended the Ministry of Finance’s Media Gathering online in Bogor, West Java, on Friday, October 10th.
Summary
The Financial Services Authority (OJK) has formed a cross-institutional task force with the Ministry of Finance, the Indonesia Stock Exchange (IDX), and other Self-Regulatory Organizations. This task force is dedicated to tackling manipulated stocks, known as “gorengan saham,” and strengthening oversight to prevent price distortions. Its key functions are to deepen the market and enhance law enforcement against manipulative practices.
Finance Minister Purbaya Yudhi Sadewa had previously urged the IDX and OJK to penalize capital market players engaged in stock price manipulation. He expressed hope that numerous individuals found guilty of such practices would face sanctions from both regulators within the next year.