Indonesia Vows Crackdown on ‘Pump-and-Dump’ Schemes as Danantara Signals Market Overhaul

JAKARTA, Investortust.id — Indonesia’s government and top financial authorities have launched a high-stakes campaign to restore integrity to the Southeast Asian nation’s stock market. The move comes after a period of volatile trading and growing concerns over "saham gorengan"—a local term for manipulated "fried" stocks—that has rattled investor confidence and triggered emergency weekend summits.

Following meetings at the Indonesia Stock Exchange (IDX), officials declared a zero-tolerance policy toward price manipulation. The intervention aims to pivot the market toward fundamental-driven valuations and away from the speculative influence of powerful conglomerates.

A Mandate for Transparency

The push for reform is being championed by Rosan Roeslani, CEO of Danantara, the country’s powerful new sovereign wealth entity. Speaking to reporters on Sunday, Roeslani emphasized that stock prices must be the "pure reflection of market supply and demand." He signaled that while high valuations are not inherently problematic, they must be supported by liquidity and natural price discovery to avoid systemic shocks.

Central to this structural shift is a proposal to mandate a 15% free float for listed companies, doubling the current 7.5% requirement. "Foreign investors understand the situation and have signaled a positive response to these reforms," Roeslani said, noting that increased liquidity and transparency are primary demands of global fund managers.

The Power Behind the Bourse

While Danantara is not a regulator—a role held by the Financial Services Authority (OJK)—its influence over the exchange is unrivaled. The agency manages 26 state-linked companies currently listed on the bourse, a portfolio that commands roughly 13% of the total market capitalization. This includes "Big Four" lenders such as Bank Mandiri, BNI, and BRI, which serve as the primary bellwethers for the Indonesian economy.

Furthermore, Danantara’s interest in the exchange is set to shift from stakeholder to shareholder. The agency has disclosed plans to invest in the IDX as part of the bourse’s ongoing demutualization, a move that would formalize its role as a pillar of market stability while the IDX maintains its status as a self-regulating entity.

Ending the Era of Manipulation

The government’s rhetoric has turned uncharacteristically blunt regarding market malpractice. Airlangga Hartarto, Coordinating Minister for Economic Affairs, stated that the administration would no longer tolerate "share pricing" tactics or speculative schemes that erode the credibility of the national financial system.

"Market manipulation is a financial crime," added Jeffrey Hendrik, Director of Development at the IDX. While the OJK maintains its role as the primary overseer of the capital markets, the coordinated messaging between the government, the regulator, and Danantara appears designed to stabilize the Jakarta Composite Index (IHSG) ahead of Monday’s trading.

For a market long dominated by retail enthusiasm and concentrated ownership, Jakarta’s weekend maneuvers represent a definitive attempt to align with international standards—a necessary step if Indonesia hopes to compete for a larger slice of global emerging market portfolios.