Bogor (ANTARA) - Indonesia's Finance Minister Purbaya Yudhi Sadewa has ordered the Indonesia Stock Exchange (IDX) and the Financial Services Authority (OJK) to take firm action against individuals involved in market manipulation, commonly known as "pump and dump."
Sadewa said he hopes the cleanup to rid the capital market of speculators can be completed within a year.
“If they clean up for a year, I’ll know which stocks are being manipulated,” he said in Bogor, West Java, on Friday, adding that he actively monitors market movements and recognizes some of the individuals involved.
“I watch the market, too, and I even know some of the players — not the market makers, but those participating,” he remarked.
He stressed that cracking down on manipulators is essential to maintaining the confidence of younger investors. Around half of Indonesia's capital market investors are under 30, he noted, warning that fraudulent practices could damage their trust.
"If we don't clean this up, the interest of Gen Z investors could vanish," he said. "But if the market is fixed, they'll be confident to invest, knowing it's a fair game."
Sadewa added that fiscal incentives, such as tax reductions, might be considered if the capital market demonstrates greater integrity and transparency.
"We'll see what happens, but I can only support that if they work harder to safeguard the market’s integrity," he stated.
He reiterated that tax incentives would only be granted once market authorities effectively curb manipulative practices that harm small investors.
"The IDX director asked for incentives, which I didn't immediately grant," he said. "I told them incentives will come only after they clean up manipulative behavior to protect retail investors."
