Model of Application of the Principle of Freedom of Contract in Stock Repurchase Agreement (REPO) Transactions in the Capital Market

Eni Dasuki Suhardini (Universitas Langlangbuana)
Rachmat Suharno (Universitas Langlangbuana)
Inda Nurdahniar (Universitas Langlangbuana)
Riza Zulfikar (Universitas Langlangbuana)

Jurnal Hukum, Politik dan Ilmu Sosial (JHPIS)
Vol. 2 No. 4 (2023): Desember: JURNAL HUKUM, POLITIK DAN ILMU SOSIAL

The aim of the research is for shareowners to better understand their rights and obligations as well as the purpose of their agreement in repoing their shares, b) for repo holders to better understand the agreement that has been outlined in the repo transaction and then give birth to their rights and obligations so that they do not commit acts that are prohibited in repo transactions, and c) for investors (third parties) to be more careful and understand the provisions relating to repo transactions, so as not to buy shares that are repoing. OJK is more firm in implementing sanctions against those who break rules in the capital market so that investment order and certainty can be created in order to create a fair and fair play investment climate. Regulations in share repo transactions should not only be aimed at financial service institutions but also at share repo transactions carried out between issuers so that they can be monitored so that losses arising from (failure to deliver) can be minimized. OJK has added a mechanism for reporting and publishing repo transactions so that this event is known to the public and anyone interested in investing in the capital market knows the status of shares being repo. Based on the research results, it was concluded that the application of the principle of freedom of contract for parties in stock repo transactions between issuers has basically been implemented in accordance with Article 1338 paragraph (1) of the Civil Code and POJK, although in its implementation there are still parties who do not carry out their obligations; Share repo holders are civilly liable to the owner or a third party if the shares repo to them are transferred to a third party before maturity; The model for regulating stock repo transactions, whether carried out with financial service institutions or between issuers, contains reporting and publication obligations carried out by the OJK in order to provide certainty and fairness for issuers, repo holders and investors in accordance with the objectives of capital market law.