JakartaGlobe-Feb 3
The Indonesian Police said on Tuesday they have frozen bank and securities accounts belonging to several stock brokerage firms worth a combined Rp 674 billion, approximately $40 million, as part of an investigation into alleged insider trading and market manipulation. The probe follows a turbulent week for Indonesia’s capital market after a report by MSCI Inc flagged transparency issues and alleged coordinated transactions on the local exchange. The report triggered a sharp sell-off that sent the benchmark index down nearly 7% and wiped about $74 billion off the market capitalization of the Indonesia Stock Exchange (IDX). The turmoil led to the resignation of IDX chief executive Iman Rachman, followed by the departure of top officials at the Financial Services Authority (OJK). One case centers on brokerage firm Narada Asset Management, where investigators found indications that the underlying assets of certain mutual fund products consisted of project-related shares controlled by insiders through affiliated networks. Police suspect the transactions were deliberately structured to create a false impression of stock prices, causing market prices to diverge from companies’ underlying fundamentals. In the Narada case, police have questioned 70 witnesses and sought expert opinions from capital market specialists. Two suspects have been identified by initials MAW, the firm’s president commissioner, and DV, president director of affiliated company Narada Adikara Indonesia. Authorities also froze accounts worth about Rp 207 billion. Read more at: https://jakartaglobe.id/news/indonesia-probes-market-manipulation-freezes-broker-accounts-worth-40-million
