PGN Broker

SOE Ministry has threatened to place some brokers to negative list for any transaction of publicly listed SOEs.

The Secretary of SOE Ministry Muhammad Said Didu said that Bapepam LK also has to punish the brokers committed to the illegal trading.

"There was huge sale from a broker when the stock price declined. Even the broker still sold huge amount of stocks when the price has recovered. We see that at least there has been ethical violation by the brokers during the illegal trading."

He said that the illegal trading has included some brokers. "Other SOEs have to watch the brokers that have traded PGN stocks in huge size."

He said that when there is abnormal trading based on unpublished information, it must be closely watched.

"The government has asked the authority to see the two sides. We agree with law enforcement, but it must be seen from the two sides as brokers have posted lots of profit."

Said said that the way Bapepam handles the case will drive brokers to do the same thing by seeking insider information to get abnormal profit.

"Brokers will keep seeking insider information to get abnormal profit to get trust from investors."

Bapepam-LK has investigated 12 brokers but it did not find any evidence that they have committed to insider trading.