Jakarta, Indonesia Sentinel — The Financial Services Authority (Otoritas Jasa Keuangan, OJK) of Indonesia is actively investigating potential market manipulation in the shares of two prominent companies: PT Barito Renewables Energy Tbk. (BREN) and PT Petrindo Jaya Kreasi Tbk. (CUAN). The investigation follows allegations of “fictitious trading” or other forms of market manipulation.
Aditya Jayaantara, Deputy Commissioner for Investment Supervision of OJK, confirmed that the examination has been ongoing for several weeks.
“The investigation has been underway for some weeks,” Aditya stated during an interview at the Indonesia Stock Exchange (IDX) headquarters, Thursday, October 10.
He clarified that the OJK’s investigation focuses on transaction patterns and the timing of these activities. However, no exact timeline for the completion of the investigation has been provided. “There are specific periods we are looking into. We are checking.”
Scrutiny of Prajogo Pangestu’s Companies
The companies in question, BREN and CUAN, are both owned by Indonesian conglomerate Prajogo Pangestu.
OJK has made it clear that any violations discovered during the investigation will be addressed with strict enforcement.
Inarno Djajadi, Chief Executive of Capital Markets Supervision at OJK, emphasized that the investigation is thorough and comprehensive.
“Every finding will be evaluated in accordance with existing regulations. If violations are found, OJK will enforce the law strictly as per the applicable regulations,” Inarno stated in a written statement on Wednesday, October 2.
The OJK’s focus is not just on individual companies but also on the overall monitoring of stock transactions. Inarno noted that the agency regularly analyzes stock price movements to identify any irregularities or suspicious activities. BREN’s recent stock price fluctuations have drawn particular attention.
BREN’s Stock Surge and Recent Decline
When BREN first went public on the IDX on October 9, 2023, the stock was priced at IDR 780 per share. The stock later surged dramatically, reaching an all-time high of IDR 12,200, reflecting an increase of 1,464%.
However, BREN’s shares have recently experienced a sharp decline after being removed from the FTSE Global Equity Index. FTSE Russell, which manages the index, removed BREN from its calculation due to concerns that four shareholders held 95% of the company’s shares, violating the free float requirements.
According to FTSE Russell’s rules, for a company to be included in the FTSE Global Equity Index, it must have a free float ratio of more than 5%. Despite this, the IDX stated on September 24, 2024, that BREN’s free float ratio stood at 11.73%.
In the IDX’s official announcement, BREN’s stock was included in the Jakarta Composite Index (JCI) as part of the market’s minor evaluation for the period from October 1, 2024, to December 31, 2024. According to the evaluation, BREN’s weight within the JCI reached 4.25%, with 11.73% of its shares classified as free float
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CUAN’s Spectacular Growth
Another company under scrutiny is CUAN, which launched its initial public offering (IPO) in March 2023 with an offering price of IDR 200 per share. CUAN has seen a remarkable stock price increase of 6,775%, reaching a high of IDR 13,750 per share at its peak.
This extraordinary rise has drawn the attention of OJK, as the agency seeks to determine whether this growth was fueled by legitimate market forces or if there were signs of manipulation.
Both cases underscore the importance of ensuring transparency and fairness in Indonesia’s capital markets, with OJK committed to upholding investor protections and market integrity.
(Agung)
