CAPITAL MARKET PUNISHMENT LAW

Capital Market Law is a Law governing all aspects related to capital market forces. While the Capital
Market (Capital Market) is an activity concerned with public offerings and securities trading public
companies related premises securities, as well as institutions and professions related to securities.
Target or Juridical Objectives Capital Market Law, among others:
1. Information disclosure,
2. Professionalism and responsibility of capital market actors,
3. The market is orderly and modern,
4. Efficiency and fairness,
5. Protection of investors.
Crime and Violations in the Capital Market Field
1. The types of criminal offenses in the capital market are:
a. Fraud. (Article 378 of the Criminal Code & Article 90 UUPM.
b. Market Manipulation. (Articles 91, 92 and 93 UUPM).
2. Type of Market Manipulation such as:
a. Marking the close,
b. Painting the tape,
c. Price formation is related to margin, consolidation, or acquisition,
d. Cornering the market,
e. Pools,
f. Wash Sales,
g. Insider Tradi.
3. Sanctions
a. Administrative Sanctions (Government Regulation No. 45 of 1995),
b. Civil Sanction Article 1365, UUPM Article 111 & Company Law Limited),
c. Criminal Sanctions (UUPM Section 103-110).

C. DEVELOPMENT OF PROBLEMS
In Indonesia, the Capital Market consists of the following institutions:
1. Capital Market and Financial Institution Supervisory Agency (Bapepam-LK).
2. Stock exchanges, currently there are two: the Jakarta Stock Exchange and the Surabaya Stock
Exchange but since late 2007, the Surabaya Stock Exchange merged into the Jakarta Stock Exchange
to become the Indonesia Stock Exchange (IDX).
3. Securities companies.
4. Clearing and Guarantee Institution, currently conducted by PT. Indonesian Clearing Guarantee
Securities (PT KPEI).
5. Depository and Settlement Institution, currently conducted by PT. Kustodian Sentral Efek
Indonesia (PT KSEI).
D. INSTITUTIONS INVOLVED IN CAPITAL MARKET
1. BAPEPAM (Capital Market Supervisory Agency)
Duties of the Capital Market Supervisory Agency according to Presidential Decree no. 53 of 1990
concerning the Capital Market are:
a. Following developments and regulating capital markets so that securities can be offered and
traded regularly and efficiently and protect the interests of the public financiers.
b. Carry out coaching and supervision of the following institutions:
1. Stock exchange.
2. Clearing, settlement and storage institutions.
3. Mutual funds.
4. Securities companies and individuals
c. Giving opinion to the Minister of Finance concerning capital market
Bapepam as a capital market supervisory agency shall stipulate provisions for securities and orderly
securities to be protected in order to protect the investors and the public in the form of:

1) Information disclosure
2) Storage of records and reports provided
3) Allotment of securities

2. Primary Market Support Institution

a. Underwriter
b. Public Accountant
c. law consultant
d. Notary Public
e. Selling Agent
d. Appraisal Company

3. Supporting Institutions in Bond Issuance

In bond issuance, in addition to supporting institutions for stock issuance is also known as the
following institutions:
a) Trustee (Trustee)
b) Insurers (Guarantor)
c) Paying Agent (Paying Agent)

4. Secondary Market Support Institution

Secondary Market Supporting Institution is an institution that provides services in the execution of
sale and purchase transactions on the exchange. Supporting institutions consist of:
a) Securities Dealer
b) Securities Trading Broker (Broker)
c) Securities Company
d) Securities Administration Agencies
e) Mutual Funds