ASIATODAY.ID, JAKARTA — Indonesia’s Financial Services Authority (OJK) has imposed sweeping sanctions on PT Repower Asia Indonesia Tbk, PT Multi Makmur Lemindo Tbk (MML), and several associated parties over serious violations in the country’s capital market sector.
The enforcement action, finalized on February 6, 2026, follows regulatory investigations aimed at safeguarding market integrity, transparency, and investor confidence in Southeast Asia’s largest economy.
Repower Asia: IPO Proceeds and Material Transactions Under Scrutiny
OJK found that Repower Asia committed violations related to the use of funds raised from its Initial Public Offering (IPO), particularly concerning a material land transaction.
IDR 925 Million Fine Over Land Deal
Repower Asia was fined IDR 925 million (approximately US$58,000) for a land acquisition in Tangerang conducted on February 16, 2024. The transaction exceeded 20% of the company’s equity as of December 31, 2023.
According to OJK, the company failed to comply with mandatory Material Transaction procedures under Indonesian capital market regulations.
CEO Fined IDR 240 Million
Aulia Firdaus, who served as President Director in 2024, was fined IDR 240 million (around US$15,000) for failing to exercise due care and responsibility in managing the company, resulting in regulatory breaches.
IPO Allocation Irregularities and Due Diligence Failures
The regulator also identified serious issues in the IPO share allocation process involving PT UOB Kay Hian Sekuritas, the underwriting firm.
Underwriter License Suspended
Sanctions against UOB Kay Hian Sekuritas include:
– IDR 250 million (approx. US$16,000) fine
– One-year suspension of its underwriting license
– Mandatory compliance updates under Indonesia’s Anti-Money Laundering (AML) regulations
OJK determined that the firm failed to conduct proper Customer Due Diligence (CDD) on eight investors who received fixed IPO allocations. The investors were reportedly linked to Repower Asia and financed through affiliated entities.
Singapore Entity Also Penalized
UOB Kay Hian Pte. Ltd., based in Singapore, was fined IDR 125 million (around US$8,000) for providing inaccurate information used in the IPO allocation process.
Former Director Banned for 3 Years
Yacinta Fabiana Tjang, former director of UOB Kay Hian Sekuritas, received:
– IDR 30 million fine
– A three-year ban from participating in Indonesia’s capital market sector
Multi Makmur Lemindo: Financial Reporting Violations
OJK’s enforcement also targeted PT Multi Makmur Lemindo Tbk (MML) over deficiencies in its 2023 annual financial statements.
IDR 1.85 Billion Fine
MML was fined IDR 1.85 billion (approximately US$116,000) for recognizing assets derived from IPO proceeds without sufficient supporting documentation, violating financial reporting standards and capital market law.
Directors Jointly Liable for IDR 3.36 Billion
Four board members were held jointly liable and fined a combined IDR 3.36 billion (around US$210,000) for misstatements in the company’s 2023 financial report.
CEO Banned for 5 Years
Junaedi, who served as President Director in 2023, was barred from participating in Indonesia’s capital market activities for five years.
Auditor Suspended
The external auditor responsible for reviewing MML’s 2023 financial statements had his registration suspended for two years, after OJK found violations of professional auditing standards.
Strong Warning to the Market
OJK emphasized that the sanctions reflect a broader commitment to strengthening governance and deterring misconduct in Indonesia’s capital markets.
The case sends a clear signal to issuers, underwriters, and auditors that misuse of IPO proceeds, weak governance, and compliance failures will face strict regulatory consequences.
As Indonesia continues positioning itself as a regional financial hub, the enforcement action underscores growing regulatory vigilance amid increasing foreign and domestic investor participation. (AT Network)
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