What is Compliance in Capital Markets and Why is it Important?

Compliance in capital markets, or what is known as compliance, refers to the extent to which public companies comply with the rules and regulations set by capital market authorities such as the Financial Services Authority (OJK). This covers various aspects ranging from transparent reporting to good corporate governance. Every public company is obliged to ensure that all operational activities are carried out in accordance with applicable regulations, in order to maintain stability and security in the capital market.

The importance of compliance in capital markets cannot be underestimated. Without good compliance, investor confidence can collapse, which will ultimately affect the performance of the company itself. Investors always look for transparency and integrity in the companies they invest in. By implementing strong compliance, companies not only protect themselves from legal risks, but also build a good reputation with investors. Companies that have a good compliance track record tend to attract more investor interest and increase overall company value.

The Indonesian Issuers Association (AEI) plays an active role in supporting issuers to comply with all applicable regulations. AEI provides guidance and education to its members regarding the importance of compliance principles, as well as ensuring that all its members are able to adapt to dynamic regulatory changes in the capital market. With AEI's support, companies can maintain a good reputation and operate transparently and with integrity.

Ultimately, trust is the main foundation in the capital markets. Through consistent compliance, companies can create a healthier and more stable ecosystem, which is not only beneficial for investors, but also for the development of the Indonesian capital market as a whole. Under AEI's guidance, we believe that orderly and transparent capital markets are the key to sustainable economic growth.