Criminal Investigation Agency Raids Shinhan in Capital Market Case

In a recent development involving the capital market, the Criminal Investigation Agency (Bareskrim) conducted a search of PT Shinhan Sekuritas as part of an investigation into a capital market crime case. The agency is committed to eradicating market manipulation practices and investment crimes in Indonesia.

The investigation is focused on insider trading and pseudo-trading activities in the capital market carried out by two investment management companies, PT Narada Asset Management and PT Minna Padi Asset Management. Brigadier General (Pol) Ade Safri Simanjuntak, the Director of Economic and Special Crimes, announced that the search at PT Shinhan Sekuritas aimed to gather evidence related to a case involving Mugi Bayu Pratama and Junaedi. The former individuals are convicted in a case related to securities trading irregularities.

Junaedi was found to be involved in improper securities trading practices to manipulate stock prices for personal gain. Investigators also identified three additional suspects, BH, DA, and RE, related to the case. It was revealed that PT Multi Makmur Lemindo Tbk, with the stock code PIPA, was listed on the Indonesia Stock Exchange despite not meeting the valuation requirements.

Furthermore, the investigation uncovered instances of insider trading and pseudo-trading in the capital market involving PT Narada Asset Management. It was found that the mutual fund assets of PT Narada Asset Management stemmed from internal projects. The suspicious transactions were suspected to distort stock prices and mislead investors, potentially leading to market manipulation issues.

In total, the investigators examined 70 witnesses and experts. Substantial amounts of securities were seized, and two suspects, MAW and DV, were named in connection to PT Narada Asset Management. Additionally, another case involved PT Minna Padi Asset Management, where investigators found stock trading irregularities aimed at generating profits through purchasing shares at low prices and selling them at inflated prices.

Three suspects were named in connection to PT Minna Padi Asset Management, and significant actions were taken, including blocking sub-accounts of securities valued at approximately Rp 467 billion. The investigation serves to deter financial crimes and strengthen investor protection in the national financial sector.

The recent correction in the Composite Stock Price Index (IHSG) led to several resignations in key positions within the industry, including Iman Rachman, Mahendra Siregar, Mirza Adityaswara, Inarno Djajadi, and Aditya Jayaantara. Ade emphasized that investigations are ongoing to understand the circumstances surrounding these resignations.

As the probe continues, authorities are dedicated to upholding the integrity of the capital market and safeguarding investor interests against fraudulent activities. The efforts to combat market manipulation and financial crimes remain a top priority for the Indonesian authorities to ensure a secure and transparent investment environment.