Law Enforcement of Insider Trading in the Capital Market in Indonesia

Abstract

The purpose of this study is to analyze: 1) How law enforcement criminal acts Insider Trading in the capital market in Indonesia? 2) What is the legal protection for investors who are harmed by the practice; Insider Trading in Indonesia?. The research method used is normative juridical with a statutory approach, concept approach, and case studies. The results showed that: 1) Law enforcement in the Indonesian capital market has not run effectively as a result of weak completeness of regulations, commitment, and coordination among law enforcement, so a new orientation and paradigm are needed that have more aggregate power in capital market management, as an effort to create an orderly and transparent capital market. Investor protection is one of the main principles of activities in the modern capital market, where economic activities carried out by investors must run under the umbrella and supervision system (market surveillance), and law enforcement that can determine the degree of market confidence, because philosophically business in the capital market itself is a trust business. 2) The form of legal protection for investors for Insider Trading actions is through UUPM, UUOJK and all laws and regulations related to Insider Trading.