Public participation needed to stamp put illegal investments: OJK

Trading

Public participation is necessary to eradicate illegal investments through early detection, head of the Financial Services Authority’s (OJK’s) Investment Alert Task Force, Tongam L. Tobing, has said.

“There are a lot of illegal investments because of the existence of victims; so, early detection that involves the public is needed,” he stressed during a webinar on ‘Exploring Traces of Binary Options and Illegal Trading Robots,’ accessed from here on Monday.

According to Tobing, public losses due to illegal investments reached US$8.1 billion or Rp117.5 trillion in the period from 2011 to 2022.

Therefore, he said, the government needs the public to report investment offers with returns that are too high or illogical so that decisive actions or crackdowns can be conducted before people fall prey to them.

“For example, they say that (the victim) can get 1 percent of benefit (or return) without risk every day. This is misleading,” he informed.

Public participation is still less massive because people tend to only report illegal investments after they fall victim to them, he said.

“We need to change this behavior. We invite people to take a role in making the awareness, that (the illegal investment perpetrators’) advantage is others’ disadvantage,” he added.

He pointed out that many victims of illegal investments in binary options or trading robots are educated people with high incomes, but they do not have proper awareness.

Therefore, Tobing said that the Investment Alert Task Force will keep increasing public awareness by educating them on the importance of OJK’s or Bappebti’s recognition of investment platform actors or organizers.

“Education for the public needs to be enhanced so that they understand that the legality check is required,” he said.

“How is an investment legal or not, ask the regulator. (One can) ask and check about financial investment to OJK, commodities trade to Bappebti, cooperatives to the Cooperatives (and SMEs) Ministry. If there is no license, do not join them,” he advised.

Source: Antara News