OJK Links IPO Irregularities to Widespread Stock Manipulation as Sanctions Mount

JAKARTA, Investortrust.id — Indonesia’s Financial Services Authority said on Monday, Feb 9, 2026 in Jakarta that irregularities in initial public offerings have become a primary trigger for stock price manipulation, citing recent sanctions against two listed companies as part of a broader pattern undermining market integrity. The regulator said the findings reinforced the need for tighter supervision as global investors scrutinized Indonesia’s equity market.

Deputy Commissioner for Capital Market Supervision Eddy Manindo Harahap said the conclusion was drawn from enforcement actions, including cases involving newly listed companies. “Based on OJK examinations, including these two cases, one of the main roots of price manipulation in Indonesia’s capital market is deviation in the IPO process, especially share allocation that does not reflect genuine investor conditions,” Eddy said at a press conference at the Indonesia Stock Exchange.

OJK imposed administrative sanctions and written orders on PT Repower Asia Indonesia Tbk (REAL) and PT Multi Makmur Lemindo Tbk (PIPA), along with related parties, for violations of capital market regulations. The violations were linked to weak prudential practices, inadequate customer due diligence, and the use of inaccurate information during share ordering and allocation.

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In the Repower Asia case, OJK found that proceeds from the company’s IPO were used for a material transaction that did not follow proper procedures. The regulator fined the company Rp 925 million for a land transaction in Tangerang conducted on Feb 16, 2024, with a value exceeding 20 percent of its total equity as of Dec 31, 2023.

OJK also identified violations involving the underwriter, which failed to properly apply customer due diligence to beneficial owners represented by a foreign affiliate. Documents showed that several investors were financed by an affiliated credit entity and listed their occupation as company staff, raising concerns over the authenticity of investor profiles during the IPO process.

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In the Multi Makmur Lemindo case, OJK found that asset recognition in the company’s 2023 annual financial statements was not supported by adequate transaction evidence and originated from the use of IPO proceeds. The company was fined Rp 1.85 billion, while four directors for the 2023 period were jointly fined Rp 3.36 billion for misstatements in the financial report.

OJK also imposed a five year market activity ban on the company’s former president director and suspended the registration certificate of the company’s external auditor for two years for failing to apply professional audit standards adequately.

Beyond the two cases, OJK said enforcement data showed the issue was systemic rather than isolated. Between 2022 and January 2026, the regulator imposed total fines of Rp 542.49 billion on 3,418 parties for various capital market violations.

Of that amount, Rp 382.58 billion related to substantive violations imposed on 512 parties, including Rp 240.65 billion tied directly to stock trading operations involving 151 parties. “There are 32 cases indicated as stock trading manipulation,” Eddy said.

OJK said five criminal capital market cases had reached final and binding verdicts, while 42 suspected criminal cases remained under investigation, with 32 linked to alleged stock manipulation. One case involving PT Sriwahana Aditya Tbk had already been transferred to prosecutors.

The regulatory crackdown unfolded against a backdrop of heightened global scrutiny after MSCI temporarily froze Indonesian equities from certain global index calculations earlier this year. The decision, combined with concerns over market governance and transparency, contributed to sharp foreign outflows and increased volatility in the Jakarta Composite Index.

OJK officials said strengthening IPO governance, underwriter accountability, and disclosure quality was critical to restoring investor confidence following the MSCI action. The regulator reiterated its commitment to safeguarding market integrity, credibility, and public trust in Indonesia’s capital market.