BPK Interventing Cut Loss Of 6 Stocks, Experts: Exceeding Authority, Making Investors Troubled And Crowded Stocks

Illustration. (Photo: Doc. Antara)

JAKARTA - The Supreme Audit Agency (BPK) is suspected of intervening in the Indonesian stock market. The reason is, some time ago the government agency recommended that BPJS Ketenagakerjaan conduct a loss sale, aka cut loss of six stocks that became their portfolio.

The action was criticized by a Criminal Law expert at Al-Azhar University Indonesia (UAI), Suparji Ahmad. He said that the cut loss instruction suggested by BPK could potentially harm investors.

According to him, the decision to cut loss or take profit actually really depends on price movements in the market.

"However, the policy is technical in nature and is the authority of the board of directors of BPJS. Because one of the tips for locating risk is to minimize the capital loss in the stock portfolio," said Suparji to reporters, Sunday, July 4, 2021.

"But the problem is that this is not done by those who have the authority, in this case, the BPK," he said.

Suparji said that the cut loss and take profit recommendations will affect the BPJS financial statements. Still, he said, whatever the action, BPJS officials have the right to decide.

Because he said, the impact of the cut loss recommendation by the BPK will affect the stock market condition in the midst of the current pandemic. This means that the shares mentioned by BPK will be empty of interest, or investors will hesitate to invest in the six stocks.

"This condition is detrimental for traders or investors, including the issuer mentioned by the BPK," said Suparji.

Potential investors are afraid to invest, considering the cut loss opinion of a number of shares has the potential to cause market upheaval.

"Therefore, caution must be exercised in the process. So as not to make noise in the stock market," he said.

Previously, the former President Director of BEI, Hasan Zein Mahmud, criticized the BPK's instructions to cut losses on the six stocks that are part of the BPJS Ketenagakerjaan portfolio.

The six stocks include PT Salim Ivomas Pratama Tbk (SIMP), PT Krakatau Steel Tbk (KRAS), PT Garuda Indonesia Tbk (GIAA), PT Astra Agro Lestari Tbk (AALI), PT London Sumatra Indonesia Tbk (LSIP), and PT Indo Tambangraya Megah Tbk (ITMG).

He considered that the BPK as a high state institution should be independent and free, having the authority to examine the management and responsibility of state finances. Because, according to him, cut loss and profit-taking are technical terms, so when spoken by BPK it will connote command.

Because according to Hasan, the implementation of cut loss and take profit will directly affect the financial performance of BPJS. In addition, it can directly affect the realization of profit and loss and will have an impact on state finances.

"Can BPK be held responsible for losses or lost profit opportunities suffered by BPJS, due to cut loss or take profit orders?" said Hasan.