Legal Protection for Investors in the Digital Era: A Study of Law Enforcement by the Financial Services Authority on Illegal Investments, Cybersecurity Risks, and Legal Aspects of Financial Technology (Jurnal Hukum Indonesia)

Summary

• Satgas PASTI stopped 242 illegal investment entity offers between January and August 2026.p.2
• Satgas PASTI halted 951 illegal online lending entities between January and August 2026.p.2
• A cumulative total of 15,228 illegal financial entities were stopped between 2017 and August 2026.p.2
• POJK Number 16/POJK.04/2021 amended previous rules to expand securities crowdfunding issuers beyond limited liability companies to cooperatives and CVs.p.6

Key insights

1. Law enforcement against illegal investments faces cross-border jurisdictional limitations as perpetrators operate servers outside national territory.p.5
2. Law Number 27 of 2022 mandates written notification to data subjects and regulators in cases of personal data protection failure.p.5
3. POJK Number 16/POJK.04/2021 forbids crowdfunding operators from serving securities offerings before submitting electronic system operator registration to OJK.p.6
4. Satgas PASTI halted 15,228 illegal financial entities from 2017 through August 2026.p.4
5. Current law enforcement against illegal investment remains largely reactive, taking action primarily after illegal platforms operate and cause investor losses.p.5
6. Rapid fintech innovation creates a regulatory lag that weakens legal protection for retail investors.p.3