Goverment will tightens the capital markets sanction

Goverment will tightens the capital markets sanction

BI

2/3/2010

Irvin Avriano A. & Christine Felicia A. (M04)

Bisnis Indonesia

JAKARTA: Capital Market and Financial Institution Supervisory Agency (Badan Pengawas Pasar Modal dan Lembaga Keuangan/Bapepam-LK) intend to tighten sanctions in case of violation of capital market in the revision of the law (undang-undang) of capital markets.

Legislation and Legal Assistance Bureau Chief of Bapepam-LK Robinson Simbolon said there are three main sanctions increase that are the maximum amount of fines, the maximum amount of confinement, and replacement of customer losses.

"The fine discourse are increased five times, from now mximum IDR15 billion to IDR25 billion-IDR50 billion. We will also increased the cage penalty, and later proposed a reimbursement clause of embezzled customers' funds whose numbers are not restricted to fines," he told the press at the Bapepam-LK Building this afternoon.

He explained the replacement of the customer loss of funds is a new proposal which will be included in the revision of Bapepam-LK Law No.8/1995 of the Capital Market because it considers several cases in the capital market that has ever happened.

According to him, several embezzlement cases that have occurred and considered by the authority are Sarijaya Permana PT Securities by Herman Ramli and customer embezzlement of PT Bank Mutiara Tbk (formerly called Bank Century)--PT Indonesia Antaboga Deltasekuritas Indonesia by Robert Tantular. In addition, he said, the case of Great River.

According to him, it was also related to the complaint of most of the capital market customers who are not compensated in some cases even the offenders fined and imprisonmented which judged too soft.

"If only enlargement is for a fine or imprisonment, in some cases it was regrettable because the customers usually only want their money back, it was at the core of the proposal."

Robinson also added that the authority is trying to propose a tapping clause that will let their investigators tapped the suspects.

He also tells the revision draft of the laws of capital markets with its new draft proposal was scheduled to be juxtaposed with a bill of financial services authority (OJK).

"It will be discussed further with the Police Bareskrim and Attorney General on March 17th whether or not the proposed the tightening of criminal sanction in this bill."(M04)