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Journal : Ipso Jure

The Phenomenon of Startup Investment and Minority Investor Protection: A Legal Analysis of Asymmetric Risk polontoh, Herry m; Yusnita, Yusnita; Judijanto, Loso; Suhermi, Suhermi
Ipso Jure Vol. 2 No. 6 (2025): Ipso Jure - July
Publisher : PT. Anagata Sembagi Education

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62872/25ep0607

Abstract

The rapid growth of the startup industry in Indonesia has raised new legal issues related to the protection of minority investors in a dynamic and institutionally unestablished ownership structure. This study analyzes how the risk of information asymmetry in the relationship between founders and investors creates inequality in legal relations that weakens the position of minority investors. Through a normative juridical approach, this study examines the effectiveness of the provisions in Law Number 40 of 2007 concerning Limited Liability Companies, especially Articles 61, 62, and 114, in providing substantive legal protection. The results of the study show that the existing legal mechanism is not fully adaptive to the complexity of the startup investment model, especially due to the weak application of fiduciary duty principles and the lack of application of good corporate governance principles. On the other hand, the practice of investment agreements often affirms the dominance of the majority shareholders through exploitative clauses. Therefore, a legal reformulation is needed that is able to bridge this normative vacuum, through the strengthening of hybrid legal instruments and responsive sectoral regulations. This research recommends legal policy reforms that emphasize the balance of interests, transparency, and substantive justice to create an inclusive, sustainable, and economically democratic startup ecosystem.
Co-Authors AA Sudharmawan, AA Achmad Noerkhaerin Putra Ade Damayanti Vina Giovany Aini, Zahratul Al Ihksan Agus Alam, Rizqy Iftitah Alissa, Evalina Alya Islamiaty Amar, Nazwa Afipa Amir, Diana Amir, Haeril Amirasti, Syamsinar Andi Najemi, Andi Andrizal Andrizal Anita Sari AOLYA, ANDI RAHMADINA Aolya, Andi Ramadhani Aqilah P, A.Jasmine Haya Archieyevia Maydella Kurniawan, Shidqi Arfa, Nyimas Ariska, Siti Linda Asfar, Akbar Asmi Asmi Asnaniar, Wa Ode Sri Astika, Eliya Bohari, Muh Ijlal Imam Davega Prasna, Adeb Dini Hariyati Adam Dwi Suryahartati Elfis Suanto Emin, Wan Sulastri Ernawati Ernawati Evy Damayanti Faizah Bafadhal Fatma Jama Hardyanthi, Tri Hendri Hendri Herlina Manik Herlina, Nelli Herry M. Polontoh Jama, Fatma Judijanto, Loso Jumini, Vivi Juwita, Putri Kamila, Uswatun Kartini Kartini Karuniawati, Nia Khoiruni Azzahra, Kamila M. Yogi Riyantama Isjoni Mardhatillah, Mardhatillah Masnilawati, Andi Meri Yarni Muskibah Muskibah Netty Netty Nur ‘Azah Nys Arfa Nys. Arfa Padhila, Nur Ilah Pahlefi , Pahlefi Pahlefi, Pahlefi Pebrianto, Dony Yusra Prasna, Adeb Davega Pratama, Edy Surya Ramlan, H. Ramli, Rahmawati Rema Syelvita Rizki Amanda, Khofifah Rosmidah Rosmidah Rufi’i, Rufi’i Rufi’i, Rufi’i Rustam, Zulis Noor Rafik Samsualam, Samsualam saputri, Linda Hardianti Sartika Sartika Sasmiar, Sasmiar Satriya Pranata Sehatta Saragih Septia Rahmanda, Fadhil Septiyanti, Septiyanti Setyaranti Utami, Tiara Siregar, Yolanda Siti Aisah Slamet Santoso Soejoto, Nina Nardjati Sunarti Surianto Surianto Suyuti, Sartika Taqiyah, Yusrah Tri Antisya, Viona Umar Hasan Veithzal Rivai Zainal Vranada, Aric Windarto, Windarto Wirawan, Ika Aditya Wiyarno, Yoso Yanti, Yasmi Devi Yenita Roza Yetniwati Yetniwati YUSNITA YUSNITA Zulaika, Zulaika