LEGAL PROTECTION FOR INVESTOR IN CAPITAL MARKET STOCK TRADING
ABSTRACT: Protection for
investor is the crucial issue because it has been found many evidence of the misuse of company’s
resources for extensive period. Moreover, there are also the case of stock
lose, case in IPO, short selling, securities fraud, market manipulation, and
insider trading. Stock market is abouttrust, if it lose, the market will collpase and it will affect
the other sector, mainly economic sector. Undang-UndangNomor 8 Tahun 1995
tentangPasar Modal (UUPM) is one of the legal order to support the development
of economy. UUPM have regulatethings that very important in activities in security
market, especially the regulation of protection for investor. However, there
are still problems that have not been regulated proporsionally,
insinkronisasirule of law, and the needs for further explanation for the
existing norm. The purpose of this research is to discuss the problem of the
needs of investor to get a legal protection, and to discuss the problem of the
right of investor in security market that is not provided legal certaintyin Undang- Undang
Nomor 8 Tahun 1995 tentangpasar Modal. Furthermore, this researchalso tried to
analyze the law conception problem that
can be developed in the legal protection for the rights of investors in
security market in the future so that it can contribute to the development of
law in Indonesia. The theory that used to analyze the law material in this
research is the contract theory from Grotius, justice theory from John Rawls,
legal protection theory from Fitzgerald, Utility theory from Jeremy Bentham,
and social engineering theory from Roscoe Pound. The method that used in this
research is normative law research with rule of law approach, philosophy of
law, and law history. The result of the research shows that investor is one of
the most important element in security market activities because it fulfill the
need of addiltional capital for issuers, develop the market, and one of the
stakeholders beside the other stakeholders, that is the issuers, management,
commissioner, employee, and creditor. But the rights of the investor are
oftenly forgotten because of the lack of information towards company’s
resources compared to that of issuers. Because of that it needs protection from
law that fair and balanced, with the norm of law interference that purposefully
made by the state because the legal protection that is not sufficient with just
the norm of free contract. Regardingthe
relationship betweenthe investor and theissuerhasregulated in UUPT,
includingtheir rights, butit was not enoughtogivelegal protection toinvestorsin
the capital market. Relationship between UUPM and UUPT is Lex Specialis with
Lex Generalis. UPM as Lex Specialis and UUPT as Lex Generalis, and as we know
that Lex Specialis may differrent from the general provisionsor Lex Generalis.
UUPT has authorized the forming of the Act to regulate the rights of investors
in UUPM in the future in order to give more legal certainty, especially in the
regulated of compensation, full disclosure and criminal provisions. Because of
that, the approach of UUPM in security market can be classified in two, that is
the institutional approach and activity approach. The Institutonal approach are
the existence of Bapepam, stock market, LKP, and LPP. They don’t just having in
charge of Perdata but also in charge of public authority that run some of the
government function. From activity approach, UUPM consist of limitation for
certain party based on the spirit of “fair competition”.such as the necessity
of transparency, reporting requirements, and restrictions such as market
manipulation, insider trading, misleading information, and the regulation of
sanctions in administrative, civil, and criminal. The consept that can be
developed to increase the protection for investor is to make UUPM give stronger
legal framework in the future through the regulation of the protection of investor’s
right and maximize the transparency of information for go public company and
for company that have not go public yet, as the guarantee of certainty of law
that is needed by investor with this step : (1) Make Good Corporate Governance
refer to the principle of OECD 2001 as reference for UUPM norm; (2)
Demutualisasi stock market to increase the transparency of information and
quality of the management as an entity; (3) The development of reporting system
and the disclosure of data electronically; (4) Strengthen Bapepam authority as
supervisor in supervising the behavior of market player for the organized,
fair, and efficient market.
Author: Tito Sofyan
Journal Code: jphukumgg130036
