Indonesia’s Financial Services Authority (OJK) has conducted a search at the headquarters of PT Mirae Asset Sekuritas Indonesia (MASI) in Jakarta, as part of an investigation into suspected capital market violations.
The search was carried out by OJK investigators to further examine allegations of manipulation involving material information, which may breach Law No. 8/1995 on Capital Markets, according to a statement on Wednesday (March 4).
The investigation relates to the alleged failure to disclose affiliated parties that received fixed allotments during an initial public offering (IPO), as well as the submission of IPO fund utilisation reports that were allegedly inconsistent with actual conditions. The suspected manipulation of disclosures is believed to involve a securities firm.
Investigators also uncovered indications of suspected fictitious trading activities. The alleged transactions involved affiliated parties across seven corporate entities and 58 nominee individuals, carried out by six operators under the direction of a suspect.
Authorities believe the transactions contributed to a sharp surge of around 7,150% in the share price of PT Berkah Beton Sadaya Tbk (BEBS).
The suspected offences occurred between 2020 and 2022 and are believed to involve ASS, the beneficial owner of BEBS; MWK, a former investment banking director at Mirae Asset Sekuritas Indonesia; as well as the brokerage firm itself as a corporate entity.
Authorities say the scheme involved insider trading, IPO manipulation, and artificial trading activities.
So far, OJK investigators have questioned 25 witnesses, including individuals from Mirae Asset Sekuritas Indonesia, BEBS, banking institutions, nominee account holders, and other related parties.
OJK said it continues to coordinate with the district court and the police’s supervisory unit for civil servant investigators at the National Police’s criminal investigation department. The regulator stressed that consistent law enforcement is essential to safeguard the integrity of the financial sector, protect investors and the public, and maintain trust in Indonesia’s financial system.
Following the search, Mirae’s spokesperson stated, “As part of an ongoing legal process, PT Mirae Asset Sekuritas Indonesia received officials from the National Police’s Criminal Investigation Department (Bareskrim) and the OJK for clarification and the collection of information.”
“The company respects the ongoing examination and is cooperating fully by providing the data and information requested. We also confirm that business operations continue as usual and that services to clients remain unaffected,” it added.
The latest probe comes as regulators intensify oversight of capital market intermediaries involved in IPO transactions. In a separate enforcement action, the authorities previously searched the office of PT Shinhan Sekuritas Indonesia in Jakarta as part of an investigation into alleged stock manipulation practices linked to the 2023 IPO of PT Multi Makmur Lemindo Tbk (PIPA), where the firm acted as the underwriter. Authorities said the search was aimed at collection evidence related to potential capital market crimes.
Following that, OJK suspended UOB Kay Hian Sekuritas’ underwriting licence for a year and fined Rp 250 million for breaches linked to the 2019 initial public offering of PT Repower Asia Indonesia Tbk (REAL). OJK also fined its former director and barred him from capital market activities for three years; moreover, UOB Kay Hian’s Singapore parent was also fined for providing incorrect information that contributed to the breach.
