Jakarta. The Financial Services Authority (OJK) is drafting new regulations to rein in influencer activity in the financial sector, as authorities simultaneously investigate dozens of alleged market violations following recent turmoil on the stock exchange.

The financial watchdog said the planned rules are aimed at curbing misleading digital promotions, undisclosed paid endorsements, and market manipulation that could harm retail investors.

Friderica Widyasari Dewi, acting chair and deputy chair of OJK, said existing provisions under the Capital Market Law already apply to influencers operating in the stock market. However, a new OJK regulation (POJK) is being prepared to cover influencer activity beyond capital markets, particularly across digital platforms.

“We do not regulate the person, but the activity,” Friderica said on Monday. “Anyone who conveys information that could cause losses to the public can face strict sanctions.”

She pointed to cases in which influencers claimed to be ordinary users of financial products while secretly receiving commissions, as well as so-called pump-and-dump stock schemes — locally known as pompom saham. The regulation has been finalized and is awaiting formal enactment, with issuance targeted for the first half of 2026.

Separately, Hasan Fawzi, acting head of capital markets, financial derivatives, and carbon exchange supervision at OJK, said the new rule will clearly spell out what information disseminators — including influencers — may and may not do when promoting financial products and services.

“With this POJK, we expect all information providers to comply with clear standards, strengthening enforcement and investor protection,” Hasan said.

Dozens of Market Cases Under Review

The regulatory push comes as OJK investigates 32 alleged violations in Indonesia’s capital market. The cases involve a range of suspected misconduct, including misleading disclosures, fraud, price manipulation, and sham trading.

Hasan said not all of the cases involve influencers, stating that several investigations concern corporations and individual market participants. “Each case has different characteristics and must be examined thoroughly,” he said.

One high-profile enforcement action saw influencer Belvin Tanadi fined Rp 5.35 billion (about $318,000) for stock trading manipulation. OJK stressed that the broader investigations extend well beyond influencer-related activity.

The increased scrutiny follows sharp volatility on the Jakarta Composite Index in late January. On Jan. 28, the benchmark index plunged as much as 8% intraday, forcing the Indonesia Stock Exchange (IDX) to halt trading. Two additional trading halts were imposed the following day as selling pressure intensified.

The sell-off was triggered by an announcement from MSCI Inc., which introduced interim measures linked to concerns over market transparency and the free float of Indonesian-listed companies. While MSCI acknowledged minor improvements in free-float data, it warned that fundamental investability risks remain, including potential coordinated trading that could distort prices and amplify volatility.

As a precaution, MSCI froze several index-related changes for Indonesian securities, including the February 2026 rebalancing. It cautioned that insufficient progress by May 2026 could lead to a reduced weighting in emerging-market indexes or, in a worst-case scenario, a reclassification to frontier-market status.

The market shock was followed by a leadership shake-up, including the resignations of IDX President Director Iman Rachman and OJK Chairman Mahendra Siregar. OJK subsequently appointed interim commissioners to ensure continuity in regulation and supervision.