Analysis of Legal Protection for Mutual Fund Investors Against Violations by Investment Managers in Indonesia

Abstract

Legal protection for mutual fund investors in Indonesia is crucial in dealing with violations committed by investment managers, in order to maintain the trust and integrity of the capital market. Investment is the activity of investing capital or assets into an instrument with the hope of gaining profit in the future. and Mutual funds are investment products consisting of a collection and managed by investment managers. This article analyzes the legal protection of mutual fund investors in Indonesia against violations by investment managers. With a case study of PT Asia Raya Kapital, which was fined IDR 1.57 billion by the OJK for committing various violations including suboptimal management and cross-transactions that harm investors which will be discussed as an illustration. The study uses normative legal methods, analyzing secondary data such as capital market laws and regulations. This article examines existing legal protection mechanisms, evaluates the effectiveness of dispute resolution, and highlights the importance of understanding investment risks.