Indonesian stocks tumble 41pc; Jakarta goes after tycoons allegedly behind ‘gorengan’ shares

KUALA LUMPUR, Oct 31 — Indonesian President Prabowo Subianto’s brother has stressed the urgent need for transparency in the domestic equity market, warning that Jakarta must “mitigate the MSCI issue” and demanding that corporate leaders immediately stop “deep frying” stocks.

“I’ve been tasked by the president to help ensure this doesn’t spiral out of control,” Hashim Djojohadikusumo said in Jakarta, speaking in his capacity as the president’s special envoy and advisory board chairman of the Indonesian Chamber of Commerce and Industry (Kadin), according to Bloomberg .

“This is a very, very serious issue,” Hashim said. “Because if foreign investment pulls out of our stock market, the rupiah could weaken further. We’ll have to pay more for our foreign loans. This could become a disaster and catastrophe for the Indonesian economy.”

US index compiler MSCI Inc warned earlier this month that Indonesia could face a downgrade to standalone status, a severe sanction triggered by mounting concerns over opaque shareholding structures and coordinated trading in Southeast Asia’s largest economy.

The warnings have hammered sentiment on the Indonesia Stock Exchange, where the benchmark index has tumbled roughly 41 per cent this year, weighed down by a 3.5 per cent slide on Thursday.

In response to MSCI’s October 15 notice, Indonesia’s Financial Services Authority (OJK) announced penalties against more than a dozen entities involved in market manipulation. OJK head Friderica Widyasari Dewi confirmed on the sidelines of the Kadin forum that sanctioned firms have since paid IDR2.1 trillion (RM512 million) in fines, though the regulator has yet to disclose their identities.

Hashim addressed an audience comprising hundreds of business figures, including tycoons Anindya Bakrie and Franky Widjaja. Widjaja is the ultimate controlling shareholder of PT Dian Swastatika Sentosa, one of the entities under regulatory scrutiny.

His warning came days after President Prabowo asserted that “the Indonesian nation is not afraid of anyone and will not be intimidated.”

Hashim pressed market players to halt the local equivalent of saham gorengan, the coordinated churning and ramping of share prices detached from corporate fundamentals.

“Please stop deep frying stocks immediately because the government intends to take firm action,” Hashim said, cautioning that capital outflows triggered by a potential double downgrade could push the rupiah to 22,000 per US dollar. “This would have an extraordinarily negative political impact.”

Bank Indonesia Governor Destry Damayanti told reporters at the gathering that currency fluctuations reflect multiple dynamics, including global market sentiment. She noted that the central bank remains focused on ensuring currency stability to support real-sector expansion, emphasising that the rupiah is backed by solid underlying fundamentals.

Hashim added that the protracted equity slump directly hurts retail investors across the archipelago.

“There are 32.7 million Indonesian citizens who hold brokerage accounts — in other words, they’re investing through the stock market,” he said. “Well, the problem is that right now, those 32.7 million Indonesians are extremely dissatisfied with the situation. They’re unhappy because the value of their stocks has dropped.”

Hashim, an established conglomerate head who has long served as Prabowo’s key financial and political strategist, played a pivotal role in backing his brother’s path to the presidency.

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吉隆坡，10 月 31 日——印尼总统普拉博沃·苏比安托的弟弟强调了国内股票市场透明度的迫切需要，警告雅加达必须“缓解 MSCI 问题”，并要求企业领导人立即停止“炒股”。

据彭博社报道，哈希姆·佐约哈迪库苏莫在雅加达以总统特使兼印尼工商会（Kadin）顾问委员会主席的身份表示：“总统已委派我帮助确保事态不会失控。”

“这是一个非常非常严重的问题，”哈希姆说。“因为如果外国投资撤出我们的股市，印尼盾可能会进一步贬值。我们将不得不支付更多外债。这可能会给印尼经济带来灾难性的后果。”

美国指数编制公司MSCI本月早些时候警告称，印尼可能面临降级为独立上市公司的处罚，这是由于人们对东南亚最大经济体印尼不透明的股权结构和协调交易日益担忧而引发的严厉制裁。

这些警告重创了印尼股市的情绪，基准指数今年已下跌约 41%，周四下跌 3.5%，进一步拖累了股市。

针对MSCI 10月15日的通知，印尼金融服务管理局（OJK）宣布对十几家涉嫌操纵市场的机构处以罚款。OJK局长弗里德里卡·维迪亚萨里·德维在卡丁论坛间隙证实，受罚公司已支付2.1万亿印尼盾（约合5.12亿令吉）的罚款，但监管机构尚未披露这些公司的具体身份。

哈希姆向数百名商界人士发表了讲话，其中包括商业巨头阿南迪亚·巴克里和弗兰基·维贾亚。维贾亚是PT Dian Swastatika Sentosa的最终控股股东，该公司是目前正接受监管机构审查的实体之一。

几天前，普拉博沃总统断言“印尼人民不怕任何人，也不会被吓倒”，之后他发出了警告。

哈希姆敦促市场参与者停止当地相当于“saham gorengan”的股票操纵行为，即脱离公司基本面的协调炒作和推高股价。

哈希姆警告说：“请立即停止炒股，因为政府打算采取强硬措施。”他同时提醒，如果印尼盾评级被双重下调，可能引发资本外流，导致印尼盾兑美元汇率跌至22000印尼盾。“这将产生极其负面的政治影响。”

印尼央行行长德斯特里·达玛扬蒂在会上告诉记者，货币波动反映了多种因素，包括全球市场情绪。她指出，央行将继续致力于确保货币稳定，以支持实体经济扩张，并强调印尼盾的基本面稳健。

哈希姆补充说，持续的股市暴跌直接损害了整个群岛的散户投资者。

他说：“印尼有3270万公民持有证券账户——换句话说，他们通过股市进行投资。问题是，目前这3270万印尼人对现状极其不满。他们不满是因为他们持有的股票价值下跌了。”

哈希姆是一位资深企业集团负责人，长期以来一直是普拉博沃的关键财务和政治战略家，他在支持其兄长竞选总统的过程中发挥了关键作用。

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