SIF: Community Losses Due To Fraudulent Investments Reached IDR 139.67 Trillion

JAKARTA - The Indonesia Securities Investor Protection Fund (SIPAF) states that based on data compiled from the Financial Activity Eradication Task Force of the Financial Services Authority (OJK), losses due to fraudulent (illegal) investments in Indonesia continue to increase from year to year.

"Yes, the fraudulent investment from 2017 to 2023 is IDR 139.67 trillion," said SIPF President Director Naratama Aryanto in Pekalongan, Central Java, quoted from Antara, Tuesday, October 22.

According to him, one of the causes of this is due to the high interest of the public to invest (inclusion) which is not accompanied by an understanding of good financial management (literation) so that fraudulent investment actors often use it to seek profit.

This, he said, if anticipatory steps are not taken, it is feared that it will cause a decrease in the level of public confidence in investing.

"This is a task and challenge for regulators and financial service industry players to be able to tackle fraudulent investment cases and grow public trust in investing again, of course in legal and trusted investment products," he said.

It is said, one way that can be taken to prevent illegal investment problems is by carrying out massive education to the public about safe and trusted investments.

Indonesia SIPF or PT Organizer of the Indonesia Stock Investor Protection Program is a subsidiary company of PT Bursa Efek Indonesia (IDX), PT Kliring Penjaminan Efek Indonesia, and PT Kustodian Sentral Efek Indonesia which obtained an OJK permit to organize and manage investors' protection funds.

The implementation and management of the financier protection fund (PDPP), he said, was listed in OJK Regulation Number 49/POJK.04/2016 concerning the Investment Protection Fund and Number 50/POJK.04/2016 concerning the Implementation of the Investment Protection Fund (DPP).

"The legal basis for the DPP and PDPP is also further strengthened by Law Number 4 of 2023 concerning the Development of Strengthening the Financial Sector (UU PPSK)," he said.

Naratama Aryanto said his party would provide protection against the risk of losing investors' assets entrusted to the Kustodian by providing compensation for the value of lost investor assets using investor protection funds.

"The maximum amount of compensation by the DPP currently in effect is Rp. 200 million per investor or Rp. 100 billion per incident in Kustodian," he said.

According to him, as of September 2024, the DPP collected and managed by Indonesia SIPF was IDR 341.80 billion, an increase of IDR 41.53 billion (13.83 percent) year to date.

"The value of investor assets in the capital market protected by Indonesia SIF until the end of September 2024 reached IDR 8,042 trillion. This figure has increased year to date by IDR 521 trillion (6.93 percent)," he said.