“Pump-and-Dump” Stock Practices Must Be Prosecuted: Agency

RRI.CO.ID, Jakarta - The head of the Indonesian National Agency for Consumer Protection (BPKN), Mufti Mubarok, has urged law enforcement agencies to crack down on price manipulation in the capital market, describing “pump-and-dump” practices as white-collar crimes that erode public trust in the financial system.

The National Consumer Protection Agency (BPKN) is an independent advisory body that provides policy recommendations to the government and protects consumer rights in Indonesia. It also conducts research and receives public complaints related to consumer issues.

Mufti said such manipulative practices distort price trends and trading momentum, causing significant harm to retail investors and violating Law No. 8/1995.

“These practices have the potential to destroy public trust and undermine the market’s function as a provider of long-term financing,” Mufti said in Jakarta on Monday, February 2, 2026.

The Indonesia Stock Exchange (IDX) recorded rapid growth in the number of issuers, reaching 956 companies in 2025, a sharp increase compared to early 2023. 

Domestic investors also rose significantly, with 21,037,426 single investment identities registered in January 2026. Of these, nine million are retail stock investors who remain highly vulnerable to speculative risks.

BPKN has called on the Financial Services Authority (OJK), IDX, and the National Police’s Criminal Investigation Unit (Bareskrim Polri) to immediately conduct preliminary investigations into suspected market violations. 

Mufti stressed that strict law enforcement must target investment managers and brokers found to have engaged in pseudo-transactions.

To protect investors, BPKN recommends accelerating public education programs to help people distinguish between healthy investments and speculative practices. Massive education efforts are needed to safeguard public capital from misleading information spread by certain parties.

Mufti also emphasized the importance of transparency in the ownership structures of new issuers before they conduct initial public offerings (IPOs). He said high standards for securities listing are essential to prevent the stock exchange from becoming an instrument of corporate crime that harms small investors.

OJK has committed to tightening supervision of financial influencers’ activities on social media, while the government is preparing structural reforms to improve trading quality and strengthen the integrity of the national capital market. (Gusti Panji/Lasti Martina)