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

Considering the role and involvement of each person in the violations and in order to create deterrence effect for financial services industry pl​ayers, on February 21th 2024 OJK imposed administrative sanctions and/or Written Orders as f​ollows:

1. OJK imposed PT Emco Asset Management (PT EAM) penalty of Rp3.350.000.000,00 (three billion three hundred fifty million rupiah) and a Written Order as follows:

   a. Written Order to settle redemption debt payments to customers.

   b. Written order to carry out the dissolution/liquidation of Reksa Dana Emco Mantap, Reksa Dana Emco Growth Fund, Reksa Dana Emco Pesona, Reksa Dana Syariah Emco Saham Barokah Syariah after completion of redemption debt payments to customers.

   c. Written Order to carry out the dissolution/liquidation of Reksa Dana Penyertaan Terbatas Emco Properti Fund.

   d. Written Order to complete adjustments to POJK Number 2/POJK.04/2020 in accordance with commitments in the form of dissolution/liquidation in the context of settlement to Reksa Dana Terproteksi EMCO XII's clients and responsible for all losses arising from violation as intended in Article 27 UUPM and Article 2 of the Financial Services Authority Regulation Number 23/POJK.04/2016.

   e. Written Order to fulfill the provisions regarding Independent Commissioners.

2. Written orders as intended in letters a, b, c, d, and e above must be fulfilled within 6 (six) months from the date sanction letter is issued. In the process of fulfilling all the Written Orders above, PT EAM is obliged to continue reporting the progress in fulfilling the Written Orders to OJK. Furthermore, it is conveyed that in addition to the administrative sanctions and Written Orders as referred to number 1 above, OJK may impose administrative sanctions or other firm action to PT EAM for the violations as referred above.The Administrative Sanctions in the form of penalties and Written Orders were imposed because PT EAM was proven to have committed the following violations:

   a. Article 20 paragraph (2) UUPM in conjunction with Article 21, Article 23 paragraph (1) and paragraph (2), and Article 24 POJK Number 23/POJK.04/2016 as amended and regulated the same in POJK Number 4/POJK.04/2023 because PT EAM did not repurchase and did not make paymentonthe repurchase of the Unit Investments in Reksa Dana Emco Mantap, Reksa Dana Growth Fund, Reksa Dana Emco Pesona, and Reksa Dana Syariah Emco Saham Barokah Syariah that sold by the participation unit holders within 7 (seven) trading days after the redemption order is completely received by Investment Manager.

   b. Article 6 Paragraph (1) letter d POJK Number 23/POJK.04/2016 as amended and regulated the same in POJK Number 2/POJK.04/2020 in conjunction with Article 7 paragraph (2) and Article 8 paragraph (2) POJK Number 23/POJK.04/2016 because PT EAM, in managing Reksa Dana Emco Mantap, Reksa Dana Emco Growth Fund, and Reksa Dana Emco Pesona, has a securities portfolio issued by 1 (one) Party which is more than 10% (ten percent) of the Nett Asset Value (NAV) and PT EAM does not adjust the composition of the securities portfolio within the time limit according to the provisions.

   c. Article 14 paragraph (1) and Article 15 POJK Number 33/POJK.04/2019 in conjunction with Article 7 paragraph (2) POJK Number 23/POJK.04/2016 because PT EAM in managing Reksa Dana Syariah Emco Saham Barokah Syariah has securities portfolio issued by 1 (one) party with more than 20% (twenty percent) NAV and PT EAM does not adjust the Securities portfolio composition within the time limit in accordance with the provisions.

   d. Article 31 UUPM in conjunction with Article 2 Paragraph (1) POJK Number 45/POJK.04/2016 and Article 37 paragraph (2) letter a and Article 44 paragraph (1) and paragraph (2) POJK Number 43/POJK.04/2015 as has been revoked and regulated the same in Article 58 paragraph (2) and Article 68 paragraph (1) and paragraph (2) POJK Number 17/POJK.04/2022 because PT EAM through marketing personnel as started from the PT EAM agreement through Mr. Eddy Kurniawan with Mr. Benny Tjokrosaputro has sold Mutual Funds with fixed returns, where this has given customers or potential customers a wrong picture regarding the products he offers, namely by providing marketing materials that contain incorrect information and give the impression that customers will not lose and will obtain profits without risk, which is not in accordance with the nature of Mutual Fund investment.

   e. Article 27 paragraph (1) UUPM in conjunction with Article 2 and Article 18 POJK Number 43/POJK.04/2015 as revoked and regulated the same in Article 2 and Article 23 paragraph (1) POJK Number 17/POJK.04/2022, Article 2 paragraph (1), Article 34 paragraph (1) and paragraph (2), and Article 35 paragraph (6) letter a POJK Number 23/POJK.04/2016 and Article 2 POJK Number 39/POJK.04/2014 because PT EAM in conducting Mutual Fund management is not in good faith and full of responsibility in carrying out its duties solely for the benefit of the Mutual Fund because PT EAM through Mr. Eddy Kurniawan collaborated with Mr. Benny Tjokrosaputro in the form of:

   1) Mr. Benny Tjokrosaputro provides marketing staff from PT Hanson International Tbk. which is not APERD.

   2) PT EAM must include securities related to Mr. Benny Tjokrosaputro into PT EAM's Mutual Fund Securities Portfolio.

   f. Article 37 paragraph (2) POJK Number 43/POJK.04/2015 as revoked and re-regulated in Article 58 paragraph (1) letter b and paragraph (2) POJK Number 17/POJK.04/2022 and Article 44 paragraph (1) POJK Number  43/POJK.04/2015 as has been revoked and regulated the same in Article 68 POJK Number 17/POJK.04/2022 because PT EAMdeliberately gave customers a wrong picture regarding the products offered conveying material by not facts regarding portfolio information Mutual Fund Effects on the Reksa Dana Emco Mantap fund fact sheet for the December 2018 period include the majority of shares with large capitalization and good liquidity, but the total NAV has a very small portion so that customers or prospective customers do not get the material fact that there are shares related to Mr. Benny Tjokrosaputro which are also securities with the largest portion of the Emco Mantap Mutual Fund. This provides misleading information to customers, considering that the fund fact sheet is one of the marketing materials that can influence customers' or prospective customers' decisions in purchasing Mutual Funds.

   g. Article 27 paragraph (1) UUPM junctis Article 18, Article 25, Article 28, Article 33, and Article 34 Paragraph (1) POJK Number 43/POJK.04/2015 as revoked and re-regulated in Article 23 Paragraph (1), Article 31 letter a, Article 36, Article 42, and Article 43 Paragraph (1) POJK Number 17/POJK.04/2022 because PT EAM carried out cross transactions that did not comply with the provisions and pottentially cause losses for the Mutual Funds, i.e.:

   1) cross transactions between Investment Manager Accounts and Investment Product Accounts; and

   2) cross transactions that are not in the best conditions and at arm's length condition at the prevailing market price, without documenting the reasons for the transaction so that potentially cause losses for the Mutual Fund, and benefit PT EAM and/or certain customers.

   h. Article 14 paragraph (2) letter g POJK Number 33/POJK.04/2019 in conjunction with Article 57 POJK Number 33/POJK.04/2019 because PT EAM in managing Reksa Dana Syariah Emco Barokah Syariah has not sold shares within no later than 10 (ten) working days after the shares are no longer listed in the Sharia Securities list.

   i. Number 2 in conjunction with number 8 and number 9 of Regulation Number IV.C.2 because PT EAM determined the Fair Market Value of Securities whose value is not determined by LPHE inconsistently and carried out valuation of Securities that are actively traded on the stock exchange does not comply with the provisions.

   j. Article 27 paragraph 1 UUPM in conjunction with Article 18, Article 21, and Article 28 POJK Number 43/POJK.04/2015 as revoked and declared invalid and re-regulated with the same substance in paragraph (1), Article Article 23 27 paragraph (1), and Article 36 POJK Number 17/POJK.04/2022 because PT EAM carried out non-cross transactions on the shares outside the exchange price range without rational reasons and not accompanied by adequate working papers and not in the best condition.

   k. Article II Number 1 POJK Number 2/POJK.04/2020 because PT EAM as the Investment Manager managing Reksa Dana Terproteksi Emco XII have not yet settled the securities from the Participation Unit holder that are included in Reksa Dana Terproteksi Emco XII.

   l. Article 2 and Article 3 POJK Number 61/POJK.04/2016 in conjunction with Article 6 OJK Regulation Number 33/POJK.04/2019 because PT EAM as an Investment Manager that manages Sharia Mutual Funds does not have Sharia Supervisory Board.

   m. Article 2 letter b POJK Number 24/POJK.04/2014 in conjunction with Article 45 POJK Number 10/POJK.04/2018 because PT EAM, at least from September 2021toOctober 2023, does not have trade function coordinator.

   n. Article 21 Paragraph (2) POJK Number 10/POJK.04/2018 because PT EAM does not have Independent Commissioner.

3. OJK imposed Mr. Eddy Kurniawanas the Director of PT EAM penalty of Rp500.000.000,00 (five hundred million rupiah) because he was proven as the Party that caused PT EAM to commit the violations as referred to number 2 letters a, b, c, d, and e.

4. OJK imposes PT EAM's Mutual Fund marketers administrative sanction(s) and/or Written Order as follow:

   a. Penalty of Rp55.000.000,00 (fifty five million rupiah) and a written order in the form of a prohibition on becoming a shareholder, management and/or employee in a Financial Services Institution in the Capital Market sector for 3 (three) years to Mr. Johannes;

   b. Penalty of Rp55.000.000,00 (fifty five million rupiah) and a written order in the form of a prohibition on becoming a shareholder, management and/or employee in a Financial Services Institution in the Capital Market sector for 3 (three) years to Mr. Khristanto;

   c. Penalty of Rp60.000.000,00 (sixty million rupiah) and a written order in the form of a prohibition on becoming a shareholder, management and/or employee in a Financial Services Institution in the Capital Market sector for 3 (three) years to Mrs. Yuly,

   because they were being proven to violated the provisions of Article 15 letter b POJK Number 17/POJK.04/2019 for marketing and/or selling mutual funds by providing incorrect or misleading information about mutual funds through the provision of fixed returns thereby giving a wrong picture to customers or prospective customers regarding the products offered.