The capital market plays an important role in supporting national economic development by being a means of collecting funds from the community to be allocated to productive sectors. Prospectus as a legal document that must be issued by issuers in public offerings serves as the main instrument for delivering information to investors. Referring to Article 1 number 26, Article 70 paragraph (1), and Article 78 paragraph (1) of Law Number 8 of 1995 concerning the Capital Market, as well as OJK Regulation Number IX.C.2, the prospectus must contain information that is correct, not misleading, and reflect the principle of disclosure. This research raises two main problems, namely how to regulate the legal arrangement of prospectuses in the Indonesian capital market legal system and the extent to which prospectuses can be used as a basis for legal protection for investors. This research uses a normative juridical method with a conceptual and doctrinal approach, which relies on the review of relevant laws and regulations and legal literature. The results of the study show that the prospectus has a strategic legal position in ensuring the accountability of the issuer, and can be used as a basis for civil and criminal prosecutions if proven to contain misleading information as stipulated in Article 90 paragraph (1) and Article 104 of the Capital Market Law. Concrete examples such as the case of PT Tiga Pilar Sejahtera Food Tbk (AISA) prove that deviations in the content of prospectuses can be massively detrimental to investors. Legal protection for investors can be obtained through litigation channels and non-litigation dispute resolution mechanisms based on POJK No. 31/POJK.07/2020. Thus, strengthening regulations, supervision, and literacy are key for prospectuses to truly function as an effective legal protection tool for investors in the capital market.
Usada et al. (Sat,) studied this question.