Overview

As a result of the many violations that have occurred within Indonesia's capital-market sector in recent years, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has conceded that investor protections have not yet reached an optimal level, as investors often do not receive any indemnification for losses that they sustain as a result of capital-market violations.[1] In order to remedy this situation, the OJK has now introduced two new protection schemes known as disgorgement and disgorgement funds through the issuance of Regulation No. 65/POJK.04/2020 on the Return of Unlawful Profits and Compensation Funds for Investor Losses Within the Capital-Market Sector (“Regulation 65/2020”), which will come into force on 30 June 2021.[2]