SIPF Proposes Inclusion of Investor Asset Protection in Law
Indonesia’s Securities Investor Protection Fund (SIPF) has proposed strengthening the investor protection institution in the capital market by incorporating it into law through the launch of a consultation paper.
SIPF’s President Director, Gusrinaldi Akhyar, stated that the aim is to increase legal certainty for protecting investor assets in the capital market from loss. He hopes that investor asset protection can be safeguarded similarly to the existence of the Deposit Insurance Corporation (LPS) in the banking sector, which protects banking customers.
“At the law level, it will provide higher trust. We have benchmarked many countries that have protection at the law level,” he said at the Indonesia Stock Exchange (BEI) building in Jakarta, quoted on Wednesday (15/4/2026).
According to him, the investor fund protection scheme in Indonesia’s capital market is not yet strong. This is because investor loss compensation is still limited both in terms of regulations and protection value. Therefore, state involvement through law is greatly hoped for in the development of the capital market industry.
He explained that since its first establishment as a financial safety net in the national capital market, the investor protection mandated to SIPF has not been prioritised.
“With this regulated as a law, the state automatically supports it. Then the funds to be used later are hoped to have government participation in providing support, and protection can be greater,” Gusrinaldi revealed.
He elaborated that SIPF can only provide maximum loss compensation of Rp200 million per investor and Rp100 billion per custodian in one case. These funds are considered far from the current value of investor assets. Based on SIPF’s internal study, the average value of investor funds in Indonesia is currently around Rp600 million to Rp1.4 billion.
“Currently, what we can cover is only Rp200 million; compared to investor funds, it is quite far,” he said.
He noted that the legal framework for the investor protection institution in Indonesia’s capital market is still at the level of sectoral regulations by the Financial Services Authority (OJK), thus creating a legal vacuum at the law level that poses institutional challenges.
However, in global practice referring to IOSCO Principles and Objectives of Securities Regulation, investor protection requires strong law enforcement at the law level.
Through this Consultation Paper, the position and role of SIPF as an independent and comprehensive investor protection institution within the national capital market’s institutional structure will be clearly defined.
“So in the current capital market institutional framework, the investor protection institution does not yet exist in the Capital Market Law or the latest amendments in the UUP2SK,” he added.
He further revealed that the growth of the capital market, which has expanded significantly, is no longer the same as in the past. Moreover, the regulator has issued a policy increasing free float from 7.5% to 15%.
“That means we want to encourage more retail investors to invest in the capital market. But the capital market products we protect are still limited,” he said.
He added that if investor protection is regulated in law, it can directly impact the increase in protection value and SIPF’s managed funds, which currently stand at around Rp403 billion.