The Urgency of Law Enforcement on Economic Crimes in Stock Trading Within the Stock Market (A Study in Indonesia)
Abstract
Stock market is a medium of investment for investors and a means to gain stock for companies. One of the most-oftenly traded securities is the stock of a company. The stock trading is facilitated by technological development. The stock transaction can be done online. Yet on the other hand, the convenient stock trading system leads to violations of stock trading in the stock market. Some examples of the violation are the practice of market manipulation, insider trading, and stock market fraud. The crimes exist in the stock market are categorized as economic crime, because they are basically related to the economic system. Those crimes are also related to the process of stock trading, where in this process the offender gets huge profits illegally. The law enforcement to the violations in stock trading is very important because without good law enforcement, the violations will happen more frequently. In addition, the offender will not get any deterrent effect and Indonesia stock exchange’s reputation will be spoiled before the world and foreign investors. Stock trading violation is a form of crime in the stock market. Violations such as market manipulation, insider trading, and fraud are regulated in Article 104 of Law of The Republic of Indonesia Number 8 of 1995 on Stock Market.
