Abstract

The purpose of writing to be achieved through this research are as follows: 1) Knowing the settlement of disputes related to civil violations in the capital market and the application of sanctions in Law Number 8 of 1995 on Capital Markets and OJK Regulation Number 1/POJK.07/2014 on Alternative Institutions for Dispute Resolution in the Financial Services Sector; 2) Knowing the most effective dispute resolution to deal with civil violations in the capital market. The methods for this research uses a normative juridical approach method, namely by examining and reviewing secondary data in the form of positive law related to the subject matter under study. The results of this study relate to dispute resolution related to civil violations in the capital market and the application of sanctions in the Capital Market Law and POJK No. 1/POJK.07/2014, namely the authority to carry out examinations, and investigations of parties deemed to have committed violations in the Capital Market field have become OJK's authority since enactment. Regarding which dispute resolution is the most effective way to deal with civil violations in the capital market, many capital markets cases have arisen such as lost stock cases, short selling cases, false report cases, IPO cases and right issues, and insider trading. These cases are detrimental to the interests of investors who should be protected. Dispute resolution outside the court or through non-litigation was chosen because it was considered that the judicial process in Indonesia was considered inefficient and ineffective. Dispute resolution mechanisms through the judiciary body have many shortcomings, namely foreign partners have not given confidence in the effectiveness of the law in Indonesia, the judicial process takes a long time, complicated, requires high costs, the decision is win-lose, can damage the good relations of the parties, the results of the ruling are challenging to execute, tend to favour the prominent businessmen, the fertility of the judicial mafia, open opportunities to submit legal remedies for judges' decisions, through appeals, cassation and civil review, and others. Along with the rapid development of the capital market in Indonesia, a variety of alternatives have emerged in terms of how to resolve disputes in the capital market in Indonesia. The capital market has unique and dynamic mechanisms and characters in terms of dispute resolution and problems that occur in transactions in the capital market so that special handling is needed quickly and efficiently. The procedure for resolving disputes outside the court is felt to be the most suitable for the needs of capital market players

Keywords

  • Civil Violations
  • Capital Market
  • Dispute Resolution
  • Financial Services Authority