Supervision Model of the Financial Services Authority (Otoritas Jasa Keuangan (OJK)) on the Indonesia Capital Market to Protect Investors

The supervisory agency for the financial services sector in Indonesia is currently implemented by the Financial Services Authority whose existence is contained in the Financial Services Authority (Otoritas Jasa Keuangan/OJK) Law Number 21 the Year 2011. OJK oversees all financial institutions, including the capital market. The supervision model carried out by the OJK is a single model. Thus, OJK becomes a super body institution meaning that OJK is the only institution that has regulatory and supervisory authority over all financial service institutions. The effect of this model on investor protection is to be less than optimal. This study aimed to first find supervisory models for financial institutions, and second, to evaluate the model of capital market supervision to protect investors and propose a new model of supervision. This research uses juridical and normative methods. The juridical approach refers to statutory regulations, while the normative approach refers to legal principles and case studies also called library legal research. Research specifications use descriptive and prescriptive analysis. The data used is secondary data, which includes primary and secondary legal materials. All data collected was then processed and analyzed using qualitative methods. After analysis, the data is described and linked to each other systematically, and ultimately compiled or presented in the form of legal writing. The results showed that, first, there are several supervisory models for financial institutions, such as the Multi-supervisory Model, the Twin Peak Supervisory Model, the Functional model, and the Integrated (Single) Supervisory model. Second, the Single Supervisory model for investor protection is less than optimal. A partially integrated model is the recommendation of a new model of capital market supervision to protect investors. Keywords: supervision, OJK, capital markets, protection, investors