Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)

Abstract

Re-Conceptualizing the Legal Standing Claim by Financial Services Authority (FSA): Its Challenge in Indonesian Capital Market

Author(s): Ema Rahmawati, Lastuti Abubakar, Efa Laela Fakhriah

 There is small number of civil claims submitted by aggrieved investor in some cases over the Indonesian capital market. The above circumstance is caused by, inter alia, less access to justice, lack of trust to the court in examining the capital market dispute, complexion of litigation against the huge issuer company, and many other reasons. Although some cases in capital market are inflicting financial loss to the public investors, however, most of such aggrieved public investors prefer not to take any legal action (file civil claim) against the counter parties to pursue the financial indemnification under Article 1365 Indonesian Civil Code in conjunction with Article 111 Indonesian Capital Market Law. Referring to such condition, the law shall take place and play its ideal function to indemnify the aggrieved investor. The main purpose of the regulation in capital market is to protect the investor and create fair, organized and efficient market. The law enforcement shall be applied in any circumstance, including in the event of the breach of law is occurred. Due to the limited access to justice in committing litigation, the aggrieved retail investor shall be protected, including by performing legal standing claim by FSA as an alternative action for the investor protection. Since the relationship among the parties in capital market is not fully similar with the other FSS, the concept of legal standing requirements shall be strictly clarified, to be able to accommodate the position of consumer in capital market which is not only as consumer, but might also as the investor [public investor]. The implementation regulation of legal standing claim by FSA shall be stipulated in regulation of FSA (Peraturan OJK) rather than stipulated in regulation of Board of Commissioner of FAS (Peraturan Dewan Komisioner OJK). Regulation of FSA is legally binds in general and promulgated in staat gazett.

 

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