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Two govt institutions join investment-alert taskforce

The Taskforce for Investment Alert has been strengthened with the addition of the Cooperatives and Small-Medium Enterprises Ministry and Investment Coordinating Board (BKPM) to its team, as there has been indication of widespread bogus investment operations occurring in the sector.

The two institutions join several existing government institutions, namely the Financial Service Authority (OJK), National Police, Communication and Information Ministry, Attorney General’s Office (AGO) and Trade Ministry. The government is working with a new joint-ministerial decree (SKB) to legally bind the cooperation.

“The Communication and Information Ministry will monitor internet-based fund-raising activities. The AGO and Police will monitor activities through permit issuance for crowd gathering,” said OJK chairman Muliaman Hadad in Jakarta on Tuesday.

The Cooperatives and Small-Medium Enterprises Ministry, he further said would monitor cooperatives attempting to offer illegal investments. The taskforce, formed in 2007, will also expand to the regional level where the local police will work with BKPM and OJK regional branches and their personnel.

Based on a public report to the OJK, as of June 11, there were 430 companies offering illegal investments with 370 of them without clear legal standing.

Based on the investment type, 388 companies offered equity, bonds and gold-based investments and 23 companies offered commodity-based investments. “Also there are 66 investment offers from fictitious cooperatives and money schemes,” Muliaman said.

Source: www.thejakartapost.com, 22 June 2016