TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Fraud hurts retail investors

  • Editorial board

    Jakarta

Jakarta   /   Fri, July 3 2020   /  01:00 am
Defendants wear face shields and masks as they sit in chairs configured to comply with physical distancing rules on Wednesday, during a hearing of the Asuransi Jiwasraya trial at the Jakarta Corruption Court. JP/Dhoni Setiawan(JP/Dhoni Setiawan)

Public accountancy and fund management firms, the Financial Services Authority (OJK) and Indonesia Stock Exchange (IDX) comprise the basic infrastructure of the financial market. But they have been increasingly complicit in the shenanigans and outright fraud at financial services companies at the expense of thousands of investors. Left unchecked, this flurry of crimes will damage investor confidence in the financial market. The Attorney General’s Office (AGO) recently named 13 fund management firms, an OJK executive in charge of capital market monitoring and the directors of two publicly listed companies as suspects in the Jiwasraya fraud case, which alleges that the state-owned insurer failed to repay claims worth Rp 16 trillion (US$1.1 billion) to policyholders. The results of the AGO’s preliminary investigation indicate that multinational consultancy PricewaterhouseC...