Indonesia’s Financial Services Authority imposed Rp2.1 trillion in administrative fines across cases involving trading and IPO allocations as MSCI considers a change to the country’s market classification.
OJK’s Oct. 16 release set a Rp1.5 trillion penalty for transactions involving PT Dian Swastatika Sentosa Tbk (DSSA). It also listed Rp500 billion connected to the initial public offering of PT Barito Renewables Energy Tbk (BREN) and Rp100 billion tied to the offering of PT Petrindo Jaya Kreasi Tbk (CUAN). A follow-up on Oct. 21 identified PT SMT, AH Ltd and TC Pte Ltd as the recipients, in that order. The three listed companies were not named as fine recipients.
Reuters valued the total at $116.67 million using an exchange rate of Rp18,000 per dollar. Reuters also reported that OJK Chair Friderica Widyasari Dewi characterized the fines as the authority’s biggest sanctions action so far.
For the DSSA case, OJK examined trading from 2024 to 2026. The regulator said individual and institutional customers used several brokerages to manipulate trading, which it said drove a significant increase in the stock’s price.
In the BREN and CUAN offerings, OJK said parties affiliated with controlling shareholders concealed their identities to obtain large allocations. The regulator said the allocations concentrated ownership within a group and left fewer shares available in the market. BREN and Petrindo said they respected OJK’s decisions and that their operations continued normally.
The penalties come as MSCI consults on a proposal to move its Indonesia indexes from emerging-market to standalone-market status. The index provider cited opaque shareholding, suspected coordinated trading and insufficient evidence of effective enforcement. MSCI said it may reconsider if consultation responses show substantial improvement in governance and market functioning.
The proposal follows earlier scrutiny of Indonesia’s index classification. The consultation remains open through April 30, 2027, and MSCI plans to decide by June 30, 2027.
