Indonesian authorities are investigating allegations of insider trading and market manipulation, freezing bank and securities accounts of several brokerage firms.

The frozen bank and securities accounts are worth a combined Rp 674 billion, which is approximately US$40 million.

Indonesia Investigates Insider Trading, Market Manipulation

According to a report by the Jakarta Globe, among the firms being investigated are Narada Asset Management and Minna Padi Asset Management.

In the case of Narada Asset Management, two suspects have already been identified by the police. The first is the firm's president commissioner, while the other is the president director of Narada Adikara Indonesia, an affiliate companies.

Authorities have also confirmed the freezing of accounts worth about Rp 207 billion.

As for Minna Padi Asset Management, three suspects have been named, including the president director, a shareholder, and said shareholder's wife.

14 securities sub-accounts linked to the firm and its affiliates have already been frozen.

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Chaos in the IDX

The investigation follows the release of the MSCI report that raised concerns on transparency in the Indonesia Stock Exchange (IDX), as well as alleged coordinated transactions.

The report led to two days of market decline, which wiped out an estimated US$84 billion loss in market value.

As a result, IDX CEO Iman Rachman announced his resignation. MSCI has given Indonesia until May to show signs of progress as a reassessment will take place that month, according to Reuters.

Related Article: IDX CEO Iman Rachman Resigns Following $84 Billion Market Loss