OJK will take strong action against BREN and CUAN if market manipulation is proven

Jakarta, CNBC Indonesia – The Financial Services Authority (OJK) said it would take strong action against two companies owned by the conglomerate Prajogo Pangestu, PT Barito Renewables Energy Tbk. (BREN) and PT Petrindo Jaya Kreasi Tbk. (CUAN), if violations are found in trading on the capital market.

OJK Head of Capital Markets, Financial Derivatives and Carbon Exchange Monitoring, Inarno Djjadi, said that the investigation of the two issuers was still ongoing. According to him, the authorities conducted a detailed and thorough investigation, including an investigation for false trademarks or other market manipulation.

“All findings will be evaluated according to relevant rules and standards. If a violation is confirmed, OJK will strictly enforce the law in accordance with relevant laws and regulations,” Inarno said in his written statement, Wednesday (2/2). 10/2024).

In addition to investigative activities, in monitoring stock transactions, including BREN, Inarno said that the OJK always analyzes stock price movements according to appropriate procedures in order to – to find any regularities in stock trading.

When it was first listed on the Indonesia Stock Exchange (BEI) on October 9, 2023, BREN’s share price was offered at 780 IDR per share. If you look at the highest price BREN ever achieved at IDR 12,200, the increase in BREN share price reached 1,464%.

BREN’s share price fell sharply recently after FTSE Russell excluded the stock from its index calculations. FTSE Russell said it would remove BREN shares from the FTSE Global Equity Index because its four shareholders control 95% of the shares. One of the requirements for a public company to enter the FTSE Global Equity Index is that a number of outstanding shares ​​(free float) is above 5%.

However, in the official statement of the IDX, on Tuesday (24/9/2024), the stock exchange authority showed in BEI Publication Link No. Peng-00193/BEI.POP/09-2024 dated 24 September 2024 that BREN shares have a free float ratio of 11.73%.

The free float rate of BREN shares was published by the IDX in the results of a detailed evaluation report on the Composite Stock Price Index (IHSG) that will be effective from October 1, 2024 to December 31, 2024.

IDX also stated that the number of BREN shares for the IHSG calculation after evaluation is 15.69 billion. BREN’s weighting to JCI reached 4.25%, while BREN’s free float ratio was 11.73%.

Meanwhile, CUAN shares made an initial public offering (IPO) at a price of IDR 200 per share in March 2023. CUAN has skyrocketed 6,775% when it reached its highest price of 13,750 per share.

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