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IDX admits employees implicated in IPO bribery case
According an anonymous letter, some employees have added costs ranging from hundreds of millions of rupiah to over Rp 1 billion (US$65,000) to expedite initial public offering (IPO) procedures for companies looking to list on the exchange.
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People walk past a large screen showing trading numbers at the Indonesia Stock Exchange (IDX) in Jakarta on March 9, 2020. (AFP/Adek Berry)
T
he Indonesia Stock Exchange (IDX) has admitted that some of its employees committed “ethical violations” in processing companies’ applications to list on the exchange. The firm stated that all the involved employees had been subjected to disciplinary action in accordance with company policy.
The IDX did not reveal the names of the companies involved in the case and did not explain what punishment would be imposed on the employees in question.
“IDX is committed to upholding good corporate governance principles through the Anti-Bribery Management System (SMAP). Employees are strictly prohibited from accepting any form of gratification, including money, food, goods or services, in transactions between IDX and third parties,” the bourse’s secretary, Kautsar Primadi Nurahmad, said in a statement on Monday.
The statement comes in response to an anonymous letter send to the IDX press room where journalists work, claiming that some employees of the bourse had added costs ranging from hundreds of millions of rupiah to over Rp 1 billion (US$65,000) to expedite the initial public offering (IPO) process of companies. The scheme reportedly involved the establishment of an “advisory services firm” that collected around Rp 20 billion ($1.3 million) in revenue.
According to the letter, the scheme had been going on for several years and in July and August led to the dismissal of five IDX employees who were part of the Company Assessment Division tasked with evaluating companies’ eligibility for listing.
Read also: Traders cautious about plan to introduce short-selling on IDX
The letter also reportedly implicates employees of the Financial Services Authority (OJK), but the government agency has dismissed that accusation.
