Legal Protection for Investors in Capital Markets in Indonesia: A Study on Investment Security

Abstract

The capital market in Indonesia plays an important role in national economic development. Capital markets provide a platform for domestic and foreign investors to allocate their resources. However, security and investment protection are of utmost importance as risk or uncertainty can deter investors and harm market stability. This article critically examines the existing legal mechanisms to protect investors in the Indonesian capital market, with a focus on investment security. Legal protection for investors in the Indonesian capital market can be improved through several main strategies: strengthening regulations and licensing standards, supervision and law enforcement, financial literacy and education, as well as legal protection for foreign investors. Implementation of this strategy will create a safer, more transparent and sustainable investment environment, thereby attracting more investors and encouraging national economic growth.