– Introduction :
The rapid development of information technology has fostered innovations in the capital market, particularly in stock trading, which can now be conducted online. However, this convenience has also created new risks, namely the rise of illegal securities companies that offer stock trading services without authorization from the Financial Services Authority (Otoritas Jasa Keuangan/OJK). Such practices may cause investors to suffer financial losses and a lack of legal certainty. Therefore, it is crucial to understand the forms of legal protection available to investors trapped in transactions conducted through illegal online-based securities companies.

– Discussion :
1. Characteristics of Illegal Online-Based Securities Companies :
Illegal securities companies usually promote online stock trading by promising high returns and easy registration processes. However, they lack the required business licenses as stipulated in Law No. 8 of 1995 on Capital Market (UUPM) and its implementing regulations.
According to Article 30 (1) of UUPM, broker-dealer activities must obtain a business license from OJK.

2. Legal Risks for Investors :
Investors using illegal securities companies do not enjoy the legal protection guaranteed under the official capital market system. The risks include :
a. Loss of investment funds due to fraud or embezzlement.
b. Absence of legally recognized dispute settlement mechanisms.
c. Inability to file claims with the Indonesia Stock Exchange, the Indonesian Central Securities Depository (KSEI), or OJK.

3. Forms of Legal Protection :
Legal protection for investors can be categorized into two forms :
a. Preventive Protection
OJK supervises and issues lists of licensed securities companies.
Public education and awareness programs regarding capital markets.
Blocking of illegal securities platforms in cooperation with the Ministry of Communication and Information.

b. Repressive Protection :
Investors may report illegal securities companies to OJK, the Investment Alert Task Force, or the Police.
Criminal law enforcement under Article 104 of UUPM, which stipulates imprisonment up to 10 years and fines up to IDR 15 billion for unauthorized securities operations.
Civil lawsuits through breach of contract or tort (unlawful act) in court.

4. Legal Basis for Investor Protection :
a. Law No. 8 of 1995 on Capital Market.
b. Law No. 21 of 2011 on Financial Services Authority (OJK).
c. Indonesian Civil Code, particularly Article 1365 on tort (unlawful act).
d. OJK regulations concerning securities company licensing.

– Conclusion :
Online stock trading through illegal securities companies poses severe risks to investors due to the absence of legal certainty and protection mechanisms. Therefore, investor protection should be carried out through both preventive measures—such as education, supervision, and platform blocking—and repressive measures, including reporting, criminal law enforcement, and civil lawsuits. Investors are strongly advised to carefully verify the legality of securities companies by ensuring that they are duly licensed by OJK.