Indonesia SIPF Pushes for Legal Basis of Investor Protection Institution to Become Law
Jakarta (ANTARA) - The Indonesia Securities Investor Protection Fund (SIPF) is preparing a Consultation Paper regarding the Investor Protection Institution in the Draft Law on Amendments to Law No. 4 of 2023.
SIPF’s CEO, Gusrinaldi Akhyar, explained that the document will contain proposals to enhance the role of investor protection institutions to have a stronger legal basis, elevating it from the current sectoral regulations to a Law (UU).
“Our plan is to submit a Consultation Paper containing proposals for enhancing the existing investor protection institutions in the capital market to be incorporated into the laws of our country,” Gusrinaldi said during an online Capital Market Journalists’ Education session in Jakarta on Wednesday.
He explained that currently, the functions of investor protection institutions are not explicitly regulated in the applicable laws, so they are pushing for the existence of these institutions to be formally stated.
They hope that strengthening the legal basis will increase investor confidence in the Indonesian capital market. Through regulation in the UU, he believes investor protection will be even stronger.
“The goal is to increase confidence among investors in the Indonesian capital market, because with the existence of this protection institution regulated in the Law, investor protection will be stronger and will also provide added value for investors in our capital market,” he said.
Furthermore, Indonesia SIPF considers this initiative relevant to the Indonesian capital market reform agenda being carried out by the Financial Services Authority (OJK), including plans to enhance free float provisions.
As the number of investors increases, he believes the need for legal protection is becoming increasingly important, so they hope this Consultation Paper initiative can strengthen investor protection in the future.
For information, Indonesia SIPF is an institution tasked with organising and managing the Investor Protection Fund (DPP) in the Indonesian capital market.
Officially, this institution is a legal entity in the form of a Limited Liability Company (PT) named PT Penyelenggara Program Perlindungan Investor Efek Indonesia (P3IEI), which is supervised by the OJK.