Taming Indonesia’s financial digital wild west
We need to regulate financial influencers as they crowd the country’s capital market
Ahmad is a regulatory compliance lawyer and a PhD researcher at the University of Cambridge. Randy is a legal counsel and University of Oxford alumnus specializing in corporate and tech law. This article reflects the authors’ own analysis and views and does not necessarily represent those of The Reformist.
Indonesia’s digital financial ecosystem is now expanding at unprecedented speed, but regulatory scrutiny has struggled to keep pace with the growing influence of social media personalities who provide investment commentary to millions of followers.
This governance gap was sharply exposed in February 2026, when the Financial Services Authority (OJK) imposed a Rp 5.35 billion fine against Belvin Tannadi, an online financial influencer, for manipulating stock prices and disseminating misleading information through social media platforms.
Investigators found that the influencer used multiple securities accounts to “pump and dump” shares of at least three listed companies, posting promotional recommendations while executing counter-directional trades and profiting from followers’ reactions. The conduct was found to violate Articles 90, 91, and 92 of Law No. 4/2023 on the Development and Strengthening of the Financial Sector (UU P2SK), which prohibit market manipulation and deceptive practices in the capital market. This episode underscores how unchecked social media influence can distort markets and undermine investor protection.
The problem extends beyond isolated misconduct. Across social media platforms, influencers routinely promote cryptocurrency tokens, speculative stocks, and alternative investment schemes, and often frame their content as “financial education” while monetizing engagement through advertising, affiliate links, or undisclosed commercial arrangements.
Retail investors, as many of them are first-time participants in capital markets, may struggle to distinguish between independent analysis and paid persuasion. In volatile markets, such narratives can amplify herd behavior and exacerbate losses. Without clear regulatory classification, enforcement agencies face difficulty determining when online commentary crosses the threshold into regulated advisory activity.
Indonesia’s legal framework for financial advisory services remains anchored in the Capital Markets Law and implementing regulations issued by the OJK. Licensed investment advisors must satisfy competency standards, ethical obligations, and fit-and-proper requirements. These safeguards exist because financial advice directly influences capital allocation and public trust. However, the regime was designed for conventional advisory firms, not a decentralized digital ecosystem where influence is algorithm-driven and monetized through visibility.
The core legal question is thus substantive rather than formal. If a person provides investment recommendations that influence market behavior and receives economic benefit directly or indirectly, should that activity fall within the scope of regulated advisory services?
If regulatory responsibility depends solely on formal titles, then digital actors can operate in a gray zone while licensed professionals bear disproportionate compliance burdens. Such asymmetry undermines fairness and weakens investor protection. The OJK possesses the authority to clarify this boundary through interpretative guidance or regulatory refinement.
Law often trails behind technological innovation and social development, resulting in delayed and fragmented regulation. Proactive measures, such as predictive frameworks and comparative studies, are essential for governing emerging innovations, particularly in the financial sector.
Regulating financial influencers
The OJK has adopted a regulatory sandbox approach, allowing new business models to be tested in isolation from general regulations, helping authorities assess potential risks before full-scale implementation. Under OJK Regulation No. 3/2024, which replaced OJK Regulation No. 13/2018, digital financial business models, processes, and products may undergo limited testing before obtaining full licensing. The challenge lies in striking the right balance between oversight and innovation.
The sandbox framework should extend beyond business models to include influencers or other entities functionally tied to financial innovation. Such an approach is critical to prevent individuals from exploiting regulatory gaps for personal gain at the expense of retail investors. While criminal provisions exist to address violations, preventive and administrative regulations are equally vital, ensuring that punitive measures remain a last resort rather than the primary regulatory response.
Comparative jurisdictions provide useful guidance. In the United Kingdom, the Financial Conduct Authority (FCA) requires authorization for regulated investment advice and has warned that unauthorized financial promotion on social media may constitute criminal offenses.
In the United States, the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) enforce registration requirements and fiduciary duties under the Investment Advisers Act. Enforcement increasingly targets unregistered crypto promoters and influencers who fail to disclose paid endorsements. The principle is consistent: the substance of influence determines responsibility.
In China, financial advisors are overseen by the National Administration of Financial Regulation (NAFR) as of 2023, while the China Securities Regulatory Commission (CSRC) continues to supervise securities and futures markets. Regulations require firms and individuals to hold CSRC licenses, a framework that has now been extended to internet-based financial services. Authorities have introduced rules to address risks linked to online platforms, covering cross-border service provision, internet information management, and activities such as client profiling, asset allocation, and trade execution.
Indonesia stands at a regulatory crossroad. Digital participation in the capital market is expanding exponentially, particularly among younger demographics. Which is why the objective is not to criminalize online discussion, but to ensure that those who materially shape investment behavior meet proportionate standards of competence, transparency, and accountability.
A credible reform agenda should therefore begin with definitional clarity. The OJK must articulate when digital financial commentary becomes a regulated advisory activity. Disclosure obligations should apply to monetized investment content. Coordination between financial regulators and digital platforms should be institutionalized to address cross-sector risk. Trust is the foundation of the capital market, and it cannot thrive in regulatory ambiguity.
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