Indonesian Capital Market

It is obvious that anyone taking part in Capital Market needs security and law assurance. In creating an orderly, fair and efficient Capital Market activity, as the authority of Capital Market, Bapepam has the following duties:
a. Monitoring and Market Surveillance
Monitoring is conducted to prevent violations or unlawful act in Capital Market. It is also conducted in compliance to market players according to the existing regulations.
Surveillance towards daily transactions is the responsibility of Capital Market Authority and Stock Exchange, considering the number of crimes is possibly exist more in daily trading process (Secondary Market).
b. Law Enforcement
In implementing firm law enforcement in the Capital Market, Bapepam has the authority to conduct inspection and perform administrative penalty for those who involved in illegal actions.
Bapepam also has the authority to investigate those who are involved in violations and crime in Capital Market. Bapepam is a part of the Criminal Justice System that has the authority to bring a suspect to court of justice.
�� Inspection
According to verse 100 (1) Law No. 8, 1995 regarding Capital Market, Bapepam is permitted to conduct inspection to those who are suspected to be involved in a violation of Law and/or other rules of conduct.
Moreover, according verse (2) it stated that in compliance with inspection in verse (1), Bapepam has the authority to:
1. ask for information and/or confirmation from Party(ies) suspected to violate or have involved in such towards this Law and/or laws of conduct or to other Party if necessary;
2. obligate Party(ies) suspected to violate or have involved in such towards this Law and/or laws of conduct to perform or not perform certain action;
3. inspect and/or copy notes, bookkeepings, and/or other documents, which belong to Party(ies) suspected to violate or have involved in such towards this Law and/or laws of conduct or other Party if necessary; and/or
4. Affirmed requirements and/or permits Party (ies) suspected to violate or have involved in such towards this Law and/or laws of conduct to perform certain action needed to complete loss emerged from the violation.
�� Investigation
In verse 101 (1) and (2), it stated that in opinion to Bapepam that violations towards this Law and/or Laws of Conduct cause impairment towards the existence of Capital Market and/or endangering investors and community, Bapepam affirmed the initiative to start the inspection, and a Civil Officer from Bapepam will be given special authority to conduct inspection to Capital Market criminal act based on rules of Kitab Undang-undang Hukum Acara Pidana.
The inspector is authorized to:
1. Receive reports, announcements, and complains concerning criminal action carried out in Capital Market;
2. Examine the veracity of reports or information concerning criminal action in Capital Market;
3. Examine Party(ies) suspected to conduct or involved in criminal act in Capital Market;
4. Request, inspect, ask for information and evidence from Party(ies) suspected to conduct or witness criminal actions in Capital Market;
5. Inspect bookkeepings, notes and other documents related to criminal act in Capital Market;
6. Inspect every location suspected to have evidence of bookkeeping, notes and other documents, and hold them in custody as evidence to criminal act in Capital Market;
7. Block bank accounts or other accounts in financial institution of Party (ies) suspected to conduct or involved in criminal act in Capital Market;
8. Ask expert opinion in performing the duty as inspector in Capital Market; and
9. affirmed when the inspection starts and ends.
Moreover, Bapepam are in cooperation with Police Department, Board of Attorneys, the Department of Justice and Human Rights, Center of Financial Transaction Analysis Report (PPATK), and Commission for the Supervision of Business Competition (KPPU) of the Republic of Indonesia.
c. International Relations
In compliance to providing improvements to the Indonesian Capital Market, Bapepam joins international relations with foreign market.
Bapepam signed several bilateral MOU’s and LoI’s with foreign regulators in information, experience exchange and law enfocement.
In multilateral perpective, Bapepam actively participated several international organizations, such as ASEAN, APEC, World Bank, ADB, IMF, and IOSCO.
In IOSCO, a world body of Capital Market regulators, Bapepam is one of the first countries outside Americas besides France, Korea and England since 1984. As one of active member of IOSCO, Bapepam are in line with IOSCO’s development and acitivities such as discussions concerning strategic steps of capital market, became a member in several committees, working groups and task force within IOSCO, as host of IOSCO’s meetings, filling out questionaires regarding capital market development, fulfilling several IOSCO resolutions, conducting IOSCO Self Assessment towards IOSCO Objectives and Principles Methodology, and in effort to become one of the signatories of Multilateral MoU.
Link to : http://www.iosco.org/, http://www.world-exchanges.org