The Indonesia Stock Exchange (IDX) is under scrutiny following allegations of bribery involving five employees who reportedly solicited substantial kickbacks to facilitate the listing of companies on the exchange.
The alleged misconduct has prompted a deeper investigation into potential corruption practices within the organization.
According to reports, the alleged bribery has been ongoing for several years, with the amounts involved ranging from hundreds of millions to billions of rupiah per company.
A letter received by the IDX press room indicates that the bribery scheme involved several companies whose shares are currently listed on the exchange.
The bribes were allegedly paid in exchange for facilitating the companies’ initial public offerings (IPOs) and ensuring their listings on the IDX.
Further investigations revealed that the employees allegedly established a consultancy firm to systematically channel the illicit payments.
This company reportedly accumulated funds amounting to approximately Rp20 billion (US$1.3 million). The scandal has exposed serious corruption practices within the IDX and is currently under further investigation.
In response to these allegations, IDX management has terminated the five employees from the Corporate Assessment Division during July–August 2024.
This decision was made after it was discovered that these employees had violated company policy by accepting bribes and other forms of gratification in exchange for facilitating the listing of companies on the IDX.
The letter also mentioned that the five employees from the Corporate Assessment Division, responsible for assessing potential IPO candidates, demanded substantial sums of money and other forms of gratification as payment for their favorable analysis of companies’ eligibility for IPOs.
“For the payments received, these employees assisted in the approval process for companies to be listed and have their shares traded on the IDX,” the letter, circulated on Monday, August 26, 2024 stated.
The circular clarified that the case does not currently implicate any heads of divisions or directors responsible for the listing process at the exchange.
Further actions will determine whether the case will be escalated to criminal proceedings due to the fraudulent actions of these employees against the companies listing their shares through inappropriate means. The violations are noted to have been occurring for some time.
Previously, the IDX’s Director of Corporate Valuation, I Gede Nyoman Yetna, said that bribery is strictly prohibited within the organization.
“It’s definitely not allowed,” said Nyoman at the IDX Building in Jakarta on August 8, 2024.
Moreover, the IDX website, as of July 24, 2024, emphasized its stance against accepting gratuities. In line with its commitment to maintaining integrity, independence, and adhering to good corporate governance principles, the IDX has implemented the ISO 37001:2016 Anti-Bribery Management System (ABMS).
The IDX has urged all stakeholders, partners, clients, and others not to offer any form of gratuity, including cash, food, goods, discounts, commissions, interest-free loans, travel tickets, or accommodation.
Other offerings, such as free trips, complimentary medical treatment, or other unreasonable facilities, are also prohibited.
This prohibition applies both directly and indirectly, whether during official duties or otherwise, to all IDX personnel and their family members.
