Insider Trading: Law of the Republic of Indonesia Number 8 of 1995 on Capital Market from Typewriters to Digital Era

Suwinto Johan, Ariawan Ariawan, Luo Yuan Yuan

Abstract


Introduction to The Problem: Symmetric information is an essential factor in the capital market. Symmetric information will create an efficient capital market. Insider trading is one of the things that makes asymmetric information. The regulations on the capital market determine the criteria for insider trading. Insider trading is people who have non-public information on the company and earn financial benefits from non-public information.

Purpose/Objective Study: This research aims to determine the insider trading criteria on the Indonesian Capital Market Law Number 8 of 1995.

Design/Methodology/Approach: This research uses the normative juridical method. The study utilizes several cases that occur in countries as a discussion.

Findings: This research concludes that the definition of insider trading consists of stakeholders who have interests and non-public information on public companies. The scope of insider trading is also extended to family members of stakeholders. Stakeholders include management, related companies' employees, officials, suppliers, shareholders, and their family members. The definition of family members is the spouse, children, and parents. The definition of insider trading should be extended to the current regulations. The related individuals must carry out the obligation to report share ownership.

Paper Type: Research Article


Keywords


Asymmetric Information; Capital Market; Insider Trading; Law

Full Text:

PDF

References


Agusta, H. (2020). Pertanggungjawaban Khpm Dalam Proses Ipo Jika Terdapat Fakta Material Yang Tidak Diungkap. Masalah-Masalah Hukum, 49(1), 48–60. https://doi.org/10.14710/mmh.49.1.2020.48-60

Agustina, D. (2019, November 2). Lakukan Insider Trading, Mantan Pimpinan Perusahaan di Jepang Terancam Tindak Pidana - Tribunnews. Tribunnews.Com. https://www.tribunnews.com/internasional/2019/11/02/lakukan-insider-trading-mantan-pimpinan-perusahaan-di-jepang-terancam-tindak-pidana

Ahern, K. R. (2017). Information networks: Evidence from illegal insider trading tips. Journal of Financial Economics, 125(1), 26–47. https://doi.org/10.1016/j.jfineco.2017.03.009

Amelia, Y. (2016). Insider Trading in Capital Market (Kajian Literatur Empiris Akuntansi Berbasis Pasar Modal). Jurnal Bisnis Darmajaya, 2(1), 125–140.

BBC Indonesia. (2019). Instagram, WhatsApp: Aplikasi Media Sosial Dibatasi untuk Menangkal Penyebaran Konten Hoaks. In BBC.com. BBC Indonesia. https://www.bbc.com/indonesia/indonesia-48364514

Bergh, D. D., Ketchen, D. J., Orlandi, I., Heugens, P. P. M. A. R., and Boyd, B. K. (2019). Information Asymmetry in Management Research: Past Accomplishments and Future Opportunities. Journal of Management, 45(1), 122–158. https://doi.org/10.1177/0149206318798026

Bhuana, N. A., Eritika, C. R. P., and Kusuma, B. B. (2021). Information Inequality With Insider Trading Practices in The Indonesian Capital Market. Syiah Kuala Law Journal, 5(2), 212–221. https://doi.org/10.24815/sklj.v5i2.21705

Brodmann, J., Unsal, O., and Hassan, M. K. (2019). Political lobbying, insider trading, and CEO compensation. International Review of Economics and Finance, 59(June 2018), 548–565. https://doi.org/10.1016/j.iref.2018.10.020

Chernonog, T., and Avinadav, T. (2019). Pricing and advertising in a supply chain of perishable products under asymmetric information. In International Journal of Production Economics (Vol. 209, pp. 249–264). https://doi.org/10.1016/j.ijpe.2017.10.002

Dannenberg, P., Fuchs, M., Riedler, T., and Wiedemann, C. (2020). Digital Transition by COVID-19 Pandemic? The German Food Online Retail. Tijdschrift Voor Economische En Sociale Geografie, 111(3), 543–560. https://doi.org/10.1111/tesg.12453

Dat, P. M., Mau, N. D., Loan, B. T. T., and Huy, D. T. N. (2020). Comparative China Corporate Governance Standards After Financial Crisis, Corporate Scandals And Manipulation. Journal of Security and Sustainability Issues, 9(3), 931–941. https://doi.org/10.9770/jssi.2020.9.3(18)

Firmansyah, Y., and Haryanto, I. (2021). Vaccines Are Not Evenly Distributed? Threats To Human Rights And Herd Immunity. Ganaya: Jurnal Ilmu Sosial Dan Humaniora, 4(2), 385–399. https://doi.org/10.37329/ganaya.v4i2.1348

Hallunovi, A. (2018). The Efficient Market Hypothesis in Developing Countries: Indonesia. Xournals: Academic Journal of Accounting and Finances, 01(01), 1–6.

Harahap, A. R., Kurniawati, E. P., and Naufa, A. M. (2020). The Corporate Governance Implementation on Related Party Transactions in Indonesia. Perspektif Akuntansi, 3(1), 1–15. https://doi.org/10.24246/persi.v3i1.p1-15

Hayati, N. (2020). Corporate Governance, Disclosure Dan General Equilibrium Terhadap Asymmetry Information - Perspektif Ekonomi Mikro Dan Perspektif Akuntansi. Jurnal Akademi Akuntansi, 3(1), 90. https://doi.org/10.22219/jaa.v3i1.11891

Herlina, E. (2018). Implementasi Prinsip Transparansi Sebagai Salah Satu Prinsip-Prinsip Good Corporate Governance dalam Pasar Modal. Pemuliaan Hukum, 1(1), 1–14.

Hermansjah, R., Sugiarto, S., Ugut, G. S. S., and Hulu, E. (2021). Financial Health and Firm Performance: Evidence From Indonesia'S Listed State-Owned Enterprises. Jurnal Muara Ilmu Ekonomi Dan Bisnis, 5(2), 275. https://doi.org/10.24912/jmieb.v5i2.11828

Hidayah, N., and Ferawati, D. (2013). Analisis Pengaruh Ukuran Perusahaan Dan Net Profit Margin Terhadap Struktur Modal Pada Perusahaan Industri Semen Yang Go Public di Bursa Efek Indonesia. Quality: Jurnal Manajemen Dan Akuntasi, 2(12), 103–119.

Indopremier Sekuritas. (2015). Mantan Pejabat UBS Group Terlibat Insider Trading Saham Bank Danamon. Indopremier Sekuritas. https://www.indopremier.com/ipotnews/newsDetail.php?jdl=Mantan_Pejabat_UBS_Group_Terlibat_Insider_Trading_Saham_Bank_Danamonandnews_id=55857andgroup_news=IPOTNEWSandnews_date=andtaging_subtype=STOCKandname=andsearch=y_generalandq=(BDMN),insider tradingandhalaman=1

Indryani, N., Usman, M., Warsono, Nabila, S. U., Widiarti, and Kurniasari, D. (2021). Dynamic Modeling Data Return by Using BEKK-GARCH (Study: PT. Indofarma Tbk (INAF) and PT. Kimia Farma Tbk (KAEF) from June 2015 to July 2020). Journal of Physics: Conference Series, 1751(1). https://doi.org/10.1088/1742-6596/1751/1/012014

Johan, S. (2021a). Keterbukaan Informasi UU Pasar Modal Menciptakan Asymmetric Information dan Semi Strong Form. Masalah-Masalah Hukum, 50(1), 106–188.

Johan, S. (2021b). Knowing Company Secrets Through Employee Posts On Social Media. Diponegoro Law Review, 06(02), 203–216. https://doi.org/10.14710/dilrev.6.2.2021.203-216

Johan, S., and Ariawan, A. (2021a). Information-Conneted Approach in Identifying Capital Market Crime at Information Technology Era. Advances in Social Science, Education and Humanities Research, 570, 217–221. https://doi.org/10.2991/assehr.k.210805.035

Johan, S., and Ariawan, A. (2021b). Information-Conneted Approach in Identifying Capital Market Crime at Information Technology Era. Proceedings of the International Conference on Economics, Business, Social, and Humanities (ICEBSH 2021), 570(Icebsh), 217–221. https://doi.org/10.2991/assehr.k.210805.035

Johan, S., and Ariawan, A. (2021c). Keterbukaan Informasi Uu Pasar Modal Menciptakan Asymmetric Information Dan Semi Strong Form. Masalah-Masalah Hukum, 50(1), 106–118. https://doi.org/10.14710/mmh.50.1.2021.106-118

Kabul, L. M., and Afriwan, O. (2021). Kredit Dan Modal Sosial Dalam Perspektif Teori Dan Praktek. Jurnal Ganec Swara, 15(2), 1235–1241.

Leonard, T., and Heriyanti. (2018). Model of Obligation Regulatory Construction as Legal Protection Effort to Capital Market Investor Based Dignity Justice. Jurnal Pembaharuan Hukum, 5(3).

Mochtar, D. A., and Rahayu, D. A. (2021). Investors' Legal Protectoin Against Insider Trading In Capital Market In Indonesia. Journal of Southwest Jiaotong University, 56(4), 346–355.

Patil, S., and Bagodi, V. (2021). “A study of factors affecting investment decisions in India: The KANO way”. Asia Pacific Management Review, 26(4), 197–214. https://doi.org/10.1016/j.apmrv.2021.02.004

Pertiwi Indra; Pratiwi, Tia; Perdana, I. (2019). Aspek Hukum Prinsip Keterbukaan Perdagangan Saham Oleh Profesi Penunjang Pasar Modal. Jurnal Pionir LPPM, 5(4), 197–202.

CNBC. (2020, April 27). Forward WhatsApp Dibatasi 1 Kali, Pesan Berantai Anjlok 70%. CNBC Indonesia. https://www.cnbcindonesia.com/tech/20200427164511-37-154765/forward-whatsapp-dibatasi-1-kali-pesan-berantai-anjlok-70

Rogers, J. L., Skinner, D. J., and Zechman, S. L. C. (2016). The role of the media in disseminating insider-trading news. Review of Accounting Studies, 21(3), 711–739.

Sholichah, H., and Johan, S. (2022). The Effect of First Case Covid-19 Announcement on Average Trading Volume Activity of Pharmaceutial Sector Companies. Jurnal Manajemen Bisnis Dan Kewirausahaan, 6(2), 218–224.

Suardana, I. N., Mahendrawati, N. L., and Astiti, N. G. K. S. (2020). Perlindungan Hukum Terhadap Investor Berdasarkan Prinsip Keterbukaan oleh Emiten di Pasar Modal. Jurnal Analogi Hukum, 2(2), 182–186. https://doi.org/10.22225/ah.2.2.1918.182-186

Sya'bani, A. (2014). Minority Shareholders ' Protection in. Indonesia Law Review, 4(1).

Syakriah, A. (2020). Jokowi announces ‘free' COVID-19 vaccines for all - National - The Jakarta Post. The Jakarta Post. https://www.thejakartapost.com/news/2020/12/16/jokowi-announces-free-covid-19-vaccines-for-all.html

CNBC. (2020). Kaesang Cuit Saham KAEF Sebelum Jokowi Umumkan Vaksin Gratis. CNBC Indonesia. https://www.cnbcindonesia.com/market/20201216143804-17-209544/kaesang-cuit-saham-kaef-sebelum-jokowi-umumkan-vaksin-gratis

Detik.com. (2020). Kaesang Dituding Insider Trading, Ini Kata BEI. Detik.Com. https://finance.detik.com/bursa-dan-valas/d-5300131/kaesang-dituding-insider-trading-ini-kata-bei

Detik Finance. (2020). Kok Bisa Tahu Saham KAEF Bakal Terbang, Kaesang Insider Trading? Detik.Com. https://finance.detik.com/bursa-dan-valas/d-5300050/kok-bisa-tahu-saham-kaef-bakal-terbang-kaesang-insider-trading

Wiriadinata, W. (2014). Investigator Issue in Financial Service Crime in Indonesia. Indonesia Law Review, 4(3), 374. https://doi.org/10.15742/ilrev.v4n3.119

Wisudawan, I. G. A. (2015). Penerapan Sanksi Hukum Terhadap Profesi Penunjang Pasar Modal Atas Informasi yang Tidak Benar dan Menyesatkan dalam Pembuatan Prospektus Menurut Undang-Undang No 8 Tahun 1995 Tentang Pasar Modal. Jurnal Jatiswara, Vol 30 No 1 (2015): Jatiswara, 45–70.

Woody, K. E. (2019). The New Insider Trading. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3474570




DOI: http://dx.doi.org/10.26555/novelty.v13i1.a19101

Refbacks

  • There are currently no refbacks.


Copyright (c) 2022 Jurnal Hukum Novelty

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Jurnal Hukum Novelty

ISSN 1412-6834 (Print)

ISSN 2550-0090 (Online)

Creative Commons License
This journal is licensed under a Creative Commons Attribution 4.0 International License

Jurnal Hukum Novelty Stats

 

Jurnal Hukum Novelty is indexed by:

 

    

 

Jurnal Hukum Novelty is member of: