Jakarta. The Financial Services Authority (OJK) has imposed a combined Rp 2.1 trillion ($117 million) in administrative fines on three listed companies for capital market violations, raising fresh concerns about transparency in Indonesia’s stock market.

The companies are Sinar Mas Group’s Dian Swastatika Sentosa (DSSA), which was fined Rp 1.5 trillion; Barito Group’s Barito Renewables Energy (BREN) and Petrindo Jaya Kreasi (CUAN) were fined Rp 500 billion and Rp 100 billion respectively.

All three stocks had previously been included on the regulator’s High Shareholding Concentration (HSC) list, which identifies stocks with highly concentrated ownership.

Hasan Fawzi, OJK’s executive head of capital market, derivatives and carbon exchange supervision, said an investigation found evidence of stock price manipulation involving DSSA, as well as indications of violations in the public offering processes of BREN and CUAN.

“Of the 61 stocks included on the HSC list, 31 have undergone examinations and have shown indications of potential capital market criminal violations,” Hasan told a news conference in Jakarta on Friday.

The findings come amid pressure on Indonesia’s benchmark Jakarta Composite Index (JCI) and scrutiny of the country’s market standards by global index provider MSCI. OJK did not directly link the three companies’ cases to the JCI’s decline.

DSSA stock manipulation

OJK found evidence of market manipulation involving individual and institutional investors trading DSSA shares through several securities brokerage firms between 2023 and 2026.

The transactions were allegedly carried out in a planned and coordinated manner, resulting in a significant increase in the company’s share price, Hasan said.

To investigate the case, OJK requested data and documents from the securities firms involved and traced the flow of funds among parties connected to the transactions.

The regulator also summoned 12 securities company directors, 15 individuals, and 11 foreign legal entities as part of its investigation.

OJK said it had uncovered evidence of violations by securities company directors and suspended the licenses of those involved.

The investigation concerns alleged breaches of Articles 91 and 92 of Indonesia’s Capital Market Law, as amended by the Financial Sector Development and Strengthening Law, known as the P2SK Law.

Article 91 prohibits market manipulation, while Article 92 addresses trading practices that create misleading market conditions.

BREN and CUAN share allocations

In separate examinations of BREN and CUAN’s public offerings, OJK found that shares had allegedly been earmarked from the outset for groups linked to the companies’ controlling shareholders.

The regulator also identified indications of misleading practices in the share allocation process. Several parties linked to the controlling shareholders allegedly received large allocations while concealing their identities.

This resulted in share ownership being concentrated among certain groups, limiting the number of shares available for trading on the open market.

As part of its investigation, OJK requested data and documents from four securities firms that acted as underwriters and three custodian banks.

The regulator also traced fund flows and summoned parties suspected of involvement, including five securities company directors, representatives of three custodian banks, and seven parties linked to the fixed-allocation process.

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