Jakarta – Indonesian financial authorities have imposed administrative sanctions and written directives on several companies, including PT Repower Asia Indonesia Tbk (REAL), PT Multi Makmur Lemindo Tbk (PIPA) and related parties, for violations of capital market regulations. The actions, announced by the Financial Services Authority (OJK) on , are part of ongoing enforcement efforts to maintain integrity and public trust in the Indonesian capital market.
The OJK’s scrutiny focused on transactions involving funds raised through initial public offerings (IPOs) and compliance with anti-money laundering (AML) regulations. Specifically, regarding material transactions conducted by PT Repower Asia Indonesia Tbk using funds from its IPO, the OJK levied an administrative fine of Rp 925 million (approximately $60,833 USD based on current exchange rates). Aulia Firdaus, who served as Director of PT Repower Asia Indonesia Tbk during 2024, was also fined Rp 240 million (approximately $15,800 USD).
The regulatory actions extend to firms involved in the IPO process. PT UOB Kay Hian Sekuritas was sanctioned with a Rp 250 million (approximately $16,400 USD) fine and faces a potential one-year suspension of its license as an underwriter, effective upon receipt of the official sanction notice. The OJK directed UOB Kay Hian Sekuritas to update its account opening forms for UOB Kay Hian Pte. Ltd. Dating back to 2001.
Further penalties were assigned to individuals within UOB Kay Hian Sekuritas. Yacinta Fabiana Tjang, a former Director of PT UOB Kay Hian Sekuritas (serving from December 2018 to February 2020), received a Rp 30 million (approximately $1,980 USD) fine and a three-year ban from participating in capital market activities.
UOB Kay Hian Pte. Ltd. Was also penalized with a Rp 125 million (approximately $8,200 USD) fine for contributing to the violations committed by PT UOB Kay Hian Sekuritas.
PT Multi Makmur Lemindo Tbk faced a substantial Rp 1.85 billion (approximately $121,666 USD) fine for misrepresenting assets derived from its 2023 IPO proceeds, lacking adequate supporting transaction documentation. This constituted a breach of existing regulations.
Directors of PT Multi Makmur Lemindo Tbk from 2023 – Junaedi, Imanuel Kevin Mayola, Hendri Saputra, and Airlangga – were collectively fined Rp 3.36 billion (approximately $221,400 USD). Junaedi, the company’s Director during 2023, received the most severe individual penalty: a five-year ban from the capital market sector.
According to M. Ismail Riyadi, Head of Financial Literacy, Inclusion, and Communication at the OJK, these sanctions represent a firm response to violations and are intended to safeguard public confidence in the Indonesian capital market. “The imposition of administrative sanctions and/or Written Orders against PT Repower Asia Indonesia Tbk and PT Multi Makmur Lemindo Tbk and related parties is given as a firm step by the OJK in enforcing the law against parties who commit violations to maintain public trust in the Indonesian Capital Market industry,” Riyadi stated.
The OJK emphasized its commitment to continued rigorous enforcement to deter misconduct and ensure the orderly, fair, and efficient operation of the Indonesian capital market. The agency indicated it will pursue further legal action against any parties found to be engaging in illicit activities within the sector.
These actions follow a broader trend of increased regulatory scrutiny in Indonesia’s financial markets. In , Singapore’s market regulator lifted a ban on UOB Kay Hian Private Ltd after nearly two years, following a separate investigation. This demonstrates a regional focus on strengthening compliance and accountability within the financial services industry. The Singaporean regulator had previously fined UOB Kay Hian S$267,000 in 2022 for failures in compliance, IPO due diligence, and anti-money laundering procedures.
The penalties levied by the OJK underscore the importance of robust internal controls and adherence to regulatory requirements for companies operating in the Indonesian capital market. The cases highlight the risks associated with inadequate due diligence during IPOs and the potential consequences of misrepresenting financial information to investors.
