Investigative report reveals significant manipulation of stock market by Narada Asset Management

The Special Economic Crimes Directorate of the Indonesian National Police (INP) recently uncovered a significant market manipulation scheme orchestrated by PT Narada Asset Management. This scheme involved the use of a network of affiliates and nominees to control underlying assets in mutual fund products, ultimately distorting market prices and creating artificial demand. According to Brigadier General Ade Safri Simanjuntak, these patterns were specifically crafted to give a false appearance of stock prices, leading to a market value that did not accurately reflect the fundamental values.

Upon investigation, capital market experts confirmed that these inter-party transactions deceived investors and generated what they term as “artificial demand.” As a response to these findings, the police have identified two key suspects in this case: MAW, the President Commissioner of PT Narada Asset Management, and DV, the President Director of PT Narada Adikara Indonesia. In addition to the identification of suspects, authorities have taken action by freezing and seizing securities sub-accounts totaling around Rp 207 billion as part of their ongoing efforts to uncover and address market distortion and portfolio falsification.

The revelations made by the Indonesian National Police shed light on the intricate and deceptive practices employed by PT Narada Asset Management. By meticulously controlling underlying assets in mutual fund products through intermediaries, the firm was able to manipulate market prices and mislead investors. Such manipulative tactics, as confirmed by experts, not only misled investors but also artificially inflated demand, creating a distorted image of market conditions.

With the identification of key suspects and the freezing of assets, the authorities are taking significant steps to address the market manipulation scheme and hold those responsible accountable for their actions. The ongoing probe into PT Narada Asset Management’s activities aims to uncover the extent of market distortion and portfolio falsification perpetrated by the company and its affiliates. As the investigation unfolds, further details may emerge regarding the methods employed by the firm to carry out this elaborate scheme and the impact it had on the wider financial market.

The exposure of this market manipulation scheme serves as a reminder of the importance of regulatory oversight and enforcement in ensuring the integrity of financial markets. By actively investigating and bringing to light such fraudulent activities, the Indonesian National Police is working to protect investors and maintain the transparency and fairness of capital markets. The uncovering of such deceptive practices also highlights the need for increased vigilance and scrutiny in the financial sector to prevent similar incidents in the future.