OJK: Be Careful of MMM Scheme
10 April 2015 15:16 WIB
TEMPO.CO, Jakarta - The Financial Services Authority (OJK) warns the public about Mavrodi Mondial MoneyBox (MMM) business —known in Indonesia as Manusia Membantu Manusia, which is a financial network scheme initiated by Russian Ponzi schemer Sergei Mavrodi. The regulator says the business has a potential for making people lose money as the system resembles money game.
Additionally, the MMM business is operating without license from financial regulators and institutions.
The OJK plans to summon parties involved in the MMM business. OJK capital market supervision chief Nurhaida said they will seek explanation regarding the business' investment method, and whether they comply with Indonesia's regulations in terms of banking, capital market and other legal requirements.
The MMM is also touted to be a type of pyramid scheme, as it asks investors to pay Rp100,000 per month at minimum, promising a yield of 30 percent each month.
"The promise of a 30-percent a month profit is fantastic," OJK commissioners' board member for education and consumer protection, Kusumaningtuti S. Soetiono, said in Jakarta yesterday.
In the last two years, Kusumaningtuti said, the OJK has received 235 public reports questioning the legality of the MMM business operation.
She discourages people from joining the scheme as its organizational structure and accountability do not meet the Indonesian financial principles.
"They are asking people to deposit Rp1 million, promising a profit of Rp300 thousand [per month], yet they are highly dependent on new applicants," said Kusumaningtuti.
Although there has been no report of losses so far, OJK's chief of industry investigation Rusli Nasution said that MMM's activities are prohibited by OJK's Investment Alert Task Force.
"The Trade Ministry of Commerce and the OJK had asked them to come for questioning, so far they have not shown up," he said.
ANDI RUSLI
