Jakarta. Shares of Bank Mandiri (IDX: BMRI), Indonesia’s largest lender by assets, fell sharply as the House of Representatives said it would seek an explanation from the bank over the blocking of an activist’s account.

BMRI's shares dropped 0.71% to Rp4,190 at midday trading on Monday, while the benchmark Jakarta Composite Index (JCI) declined 0.65% to 6,483,

The account belongs to Supriyono, also known as Botok, an activist with the Pati United Community Alliance (AMPB) in Central Java. He said the account was used to hold personal funds and collect donations for a planned rally in Jakarta.

AMPB is scheduled to hold a rally outside the House of Representatives building on Aug. 27, with two main demands related to combating corruption in Indonesia: the passage of the Asset Forfeiture Bill and the introduction of the death penalty for corruption convicts.

Bank Mandiri has previously said it blocked the account in response to a request from law enforcement authorities.

The House’s Commission VI, which oversees trade, industry and state-owned enterprises, will ask the state-owned bank to clarify the chronology and legal basis for the account blocking.

“We will certainly confirm it with Bank Mandiri,” Commission VI Deputy Chairman Andre Rosiade told reporters at Parliament in Jakarta on Monday.

Andre said state-owned banks cannot arbitrarily block customers’ accounts. Any such action must comply with applicable procedures and legal requirements, he said.

Banks can block accounts when they receive requests from authorized institutions, including law enforcement agencies, the Financial Transaction Reports and Analysis Center (PPATK), the Directorate General of Taxes and the Directorate General of Customs and Excise, he said.

“If there is a request, the bank will carry it out in accordance with the existing procedures. We just need to confirm what actually happened,” Andre said.

Commission VI will therefore seek further clarification from Bank Mandiri to establish the circumstances surrounding the account blocking. Andre said state-owned banks are generally required to comply with procedures, legal provisions and good corporate governance principles when taking such measures.

He also urged the public not to worry about the safety of their funds in banks following the case.

“I think the public does not need to be concerned. Once again, Bank Mandiri and other banks will certainly make decisions in accordance with existing procedures and legal regulations,” Andre said.

The Jakarta Metro Police said it did not order the blocking of Supriyono’s account, clarifying that investigators instead requested a temporary suspension of transactions while they examine the purpose and use of funds collected through the account. “What was carried out was not a blocking, but a suspension of transactions. This is still being investigated to determine the purpose and allocation of the funds,” Polda Metro Jaya spokesman Comr. Bhudi Hermanto said Monday.

Bhudi said investigators are coordinating with the Financial Services Authority (OJK) and the Social Affairs Ministry to clarify the fundraising activities. Supriyono will also be asked to explain the transactions and purpose of the funds to determine whether the fundraising complies with applicable regulations and licensing requirements.

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