Manipulation of SWAT Stock Transactions Reaches IDR 230 Billion, OJK Hands Over Case to Prosecutor

Illustration. (Photo: Dok. Antara)

JAKARTA - The Financial Services Authority (OJK) has officially completed the investigation of the alleged misleading transaction in the trading of PT Sriwahana Adityakarta Tbk (SWAT) shares and submitted the case file to the Public Prosecutor.

Head of the OJK's Literacy, Financial Inclusion and Communication Department, M. Ismail Riyadi, said this step marked the entry of the case into the prosecution stage after the file was declared complete (P-21).

"The capital market criminal act occurred in the period from June to July 2018," he explained in his statement, Thursday, January 15.

He explained that in this case, the suspects were suspected of manipulating the price of SWAT shares by using the nominee's securities account through nine securities companies, thus creating a false impression of the price of SWAT shares on the Regular Market.

Ismail said the transaction created the illusion of stock price movement in the regular market, with a total volume of 639.78 million shares or around 14.7 percent, and a transaction value of Rp. 230.89 billion.

"Transactions through the nominee's securities account resulted in 60,121 transaction meetings or about 10.0 percent, with a transaction volume of 639,778,200 shares or 14.7 percent, and a transaction value of Rp. 230,892,423,600 or 13.3 percent," he said.

He added that the transaction pattern was indicated by market dominance, transaction meetings, buy initiators to raise prices, and buying market impact in the period from June 8 to July 5, 2018.

OJK emphasized that this practice violates the provisions of Article 91 and/or Article 92 juncto Article 104 of Law Number 8 of 1995 concerning the Capital Market, with a maximum penalty of imprisonment of up to 10 years and a maximum fine of IDR 15 billion.

"The OJK investigators have handed over the case file to the Public Prosecutor and the case file has been declared complete (P-21). Furthermore, on Tuesday, January 13, the OJK investigators carried out Phase II in the form of handing over the suspects and evidence to the Boyolali District Attorney's Office," he said.

Ismail said that in its handling, OJK continued to coordinate with law enforcement officials, including the prosecutor's office and the police, to ensure that the legal process was transparent, accountable, and professional.

According to him, this law enforcement is part of OJK's efforts to maintain the integrity of the capital market and protect investor interests.

"OJK reiterates its commitment to continue to enforce the law firmly and continuously against any violations in the financial services sector, as part of efforts to maintain the integrity of the capital market and provide protection to investors and the public," he said.