The Indonesian Ombudsman Urges CoFTRA To Give Strict Sanctions To Troubled Auction Companies

Member of the Indonesian Ombudsman Yeka Hendra Fatika (left). (Photo: Doc. Public Relations of the Indonesian Ombudsman)

The Indonesian Ombudsman appealed to the Commodity Futures Trading Supervisory Agency (CoFTRA) to impose strict sanctions on problematic brokerage companies that harm the public.

RI Ombudsman member Yeka Hendra Fatika asked CoFTRA to impose strict sanctions on brokerage companies and traders who were proven to have cheated on commodity futures trading.

Yeka explained, on January 30, 2015, the reporter submitted a complaint report to CoFTRA. After going through a series of examinations in July 2015, CoFTRA through the Examining Team chaired by the Head of the Administrative Violations Section, CoFTRA has found acts of split, delay and reject.

"This action is against the reporting transactions carried out by traders, namely PT SAM in collaboration with PT MIF brokers," Yeka said in a written statement, quoted on Saturday, October 7.

Although the results of CoFTRA's examination stated that there were split, delay and reject actions against the complainant's transaction, Yeka said, CoFTRA did not impose sanctions on the two traders and brokers.

Because, according to CoFTRA's explanation, at that time there were no technical regulations including sanctions for the split, delay and reject.

"Therefore, the Ombudsman asked the Head of CoFTRA to give administrative sanctions firmly and measurably to PT MIF and PT SAM," he said.

This is based on the provisions of Article 69 of Law Number 32 of 1997 concerning Commodity Futures Trade and Article 156 of Government Regulation Number 49 of 2014 concerning the Implementation of Commodity Futures Trading.

"For this reason, the Indonesian Ombudsman gave the Head of CoFTRA 30 days to carry out the corrective action," said Yeka.

The case has been reported since January 30, 2015, when a complaint emerged to CoFTRA. Then, in April 2016, the complainant complained to the Ombudsman.

After going through examination and clarification, in February 2018 the Ombudsman issued a Final Examination Report (LAHP) ordering CoFTRA to impose administrative sanctions on PT MIF and PT SAM.

However, until now, the Ombudsman's LAHP has not been followed up by CoFTRA. CoFTRA only submitted a warning letter to the two companies in question.

According to Yeka, his party has reviewed the implementation of corrective actions by CoFTRA which was submitted by the Ombudsman in 2018. However, the results still left some problems.

"The administrative sanctions did not solve concrete problems, because the administrative sanctions did not contain the values of punishment but instead benefited the interests of the two brokerage companies and traders. The reporting party has yet to receive compensation," he said.

He added that the sanctions given by CoFTRA to PT MIF and PT SAM formally did not mention the legal provisions that were violated and did not contain the punishment properly.

In the period 2022-2023, Yeka said, his party had received 28 public reports with CoFTRA as the reported party. The losses of the complainants in total reached more than Rp. 100 billion.

"I am sure, there are still many people who experience similar losses. Please report to the Ombudsman," he concluded.