​Indonesia Financial Services Authority (OJK) herewith announces the results of the Formal Investigation in the case of violations of Capital Market regulations by PT Kresna Asset Management (PT KAM).

Considering a deterrent effect for financial services industry players, on June 8, 2023 OJK imposes Administrative Sanctions and Written order for PT KAM as follows:

1. Imposes penalty of Rp1.800.000.000,00 (one billion eight hundred million rupiah); and

2. Written order to terminate the Discretionary Fund product managed by PT KAM that are not in accordance with the applicable provisions, within a period of 3 (three) months after the Written Order is stipulated.

The administrative sanctions and Written Order were impose by OJK to PT KAM because PT KAM was proven to have committed the following violations:

1. The provisions of Article 4 letter b POJK 43/POJK.04/2015 as revoked and regulated the same as in Article 4 letter b POJK Number 17/POJK.04/2022 because PT KAM did not disclose in writing to customers regarding the conflict of interest of PT KAM for the placement of the Discretionary Fund portfolio in KREN and/or ASMI shares prior to the share transaction.

2. Provisions of Article 17 paragraph (1) POJK Number 21/POJK.04/2017 because PT KAM does not have good faith for the benefit of PT KAM's Discretionary Fund customers in terms of portfolio selection which is only limited to KREN and ASMI shares and does not replace the KREN stock portfolio even though the value is continued to fall, causing Discretionary Fund customers to suffer losses. 

3. Provisions of Article 28 POJK Number 21/POJK.04/2017 juncto Article 44 paragraph (1) and paragraph (2) POJK Number 43/POJK.04/2015 as revoked and regulated the same as in Article 68 paragraph (1) and paragraph (2) letter a, letter b, and letter d POJK 17/POJK.04/2022 because PT KAM markets and/or sells Discretionary Fund through PT Kresna Sekuritas freelance marketing by providing promises of definite returns to customers. 

4. The provisions of Article 22 and Article 23 juncto Article 21 POJK Number 21/POJK.04/2017 because PT KAM does not have written procedures and written agreement with PT Kresna Sekuritas in using marketing services for offering PT KAM's Discretionary Fund products and did not submit the written agreement to OJK in accordance with the provisions.

5. The provisions of Article 31 letter a, letter c, and letter d POJK 43/POJK.04/2015 as revoked and regulated the same as in Article 40 letter a, letter c, and letter d POJK 17/POJK.04/2022 because PT KAM did Securities transactions of Discretionary Fund through PT Kresna Sekuritas by always buying ASMI and KREN shares where the transactions are not in arm's length conditions and the best execution standards.

Furthermore, apart from PT KAM, OJK also imposes Administrative Sanctions in the Form of Penalty against parties who were proven caused PT KAM to commit the violation referred to above, which are:

1. Mr. Yohannes Yobel H as President Director of PT KAM in the amount of Rp500.000.00,00 (five hundred million rupiah) for being proven violated the provisions of number 3 letter b number 1) letter g) and letter h) Regulation Number V.A.3 Attachment to the Decree of the Chairman of Bapepam and LK Number Kep-479/BL/2009 dated 31 December 2009;

2. Mr. Michael Steven as the Controlling Shareholder and Chairman of the PT KAM Investment Committee in the amount of Rp5.700.000.000,00 (five billion seven hundred million rupiah) for being proven violated the provisions of number 2 letter b number 1) letter c) and letter d) Regulation Number V.A.3 Attachment to the Decree of the Chairman of Bapepam and LK Number Kep-479/BL/2009 dated 31 December 2009;

3. Mr. Deddy Haryanto as ex Branch Manager PT Kresna Sekuritas Surabaya Branch in the amount of Rp80.000.000,00 (eighty million rupiah) for being proven violated the provisions of Article 4 letter a number 6 POJK Number 20/POJK.04/2018 juncto Article 28 letter c POJK Number 21/POJK.04/2017;

4. Mr. Sandjaja Oejana Hartawan as Freelance Marketing PT Kresna Sekuritas in the amount of Rp100.000.000,00 (One hundred million rupiah) for being proven violated the provisions of Article 4 letter a number 6 POJK Number 20/POJK.04/2018 juncto Article 28 letter c POJK Number 21/POJK.04/2017;

5. PT Kresna Sekuritas in the amount of Rp300.000.000,00 (three hundred million rupiah) for being proven violated the provisions of Article 22 and Article 23 juncto Article 21 POJK Number 21/POJK.04/2017.