OJK Sanctions Sejahtera Bintang Abadi Textile and Controller for Conflict of Interest
Jakarta – The Financial Services Authority (OJK) has issued a harsh reprimand and sanctions against PT Sejahtera Bintang Abadi Textile Tbk (SBAT), a textile company based in Bandung, and its controlling shareholder, Tan Heng Lok, for violations related to affiliate transactions and conflicts of interest. The sanctions, announced on Saturday, March 14, 2026, underscore the OJK’s commitment to maintaining transparency and accountability in the Indonesian capital markets.
Violation of Conflict of Interest Procedures
The OJK’s written warning stems from SBAT’s failure to adhere to proper procedures for conflict of interest transactions, specifically violating Article 11 paragraph (1) of POJK Number 42/POJK.04/2020. According to the OJK, the violation concerns a reduction in interest rates outlined in Addendum 4 to Credit Agreement Number 54, dated July 8, 2020, between SBAT and PT Mitra Buana Korporindo (MBK).
Further violations were identified in Addendum I of the Debt Recognition Agreement, likewise dated July 8, 2020, between SBAT and PT Celestia Sinergi Indonesia (CSI).
Sanctions Imposed
PT Sejahtera Bintang Abadi Textile Tbk has received an Administrative Sanction in the form of a Written Warning. As reported by Asatu News, Tan Heng Lok, as the controller of SBAT, MBK, and CSI, has been penalized with a fine of IDR 45 million (approximately $2,800 USD as of March 14, 2026).
In addition to the fine, Tan Heng Lok is prohibited from serving as a member of the board of commissioners, directors, or management of companies in the capital markets sector for a period of five years. The OJK determined that Tan Heng Lok benefited from the conflict of interest transaction, which ultimately disadvantaged the company.
Broader Regulatory Action
The OJK’s actions against SBAT and Tan Heng Lok are part of a broader series of sanctions against several issuers and individuals for violations in the capital markets sector. Bisnis.com reports that PT Bliss Properti Indonesia Tbk (POSA) also received sanctions, and Benny Tjokrosaputro was banned from participating in capital market activities for life.
Implications and Future Outlook
These sanctions signal the OJK’s increased scrutiny of potential conflicts of interest and its commitment to protecting investors. The penalties imposed on SBAT and its controller serve as a warning to other market participants to adhere to regulatory guidelines and prioritize corporate governance. The OJK is expected to continue its enforcement efforts to maintain the integrity and stability of the Indonesian capital markets.