Legal Protection for Retail Investors on Securities Crowdfunding Platforms: An Analysis of Investment Risk Mitigation and Organizer Responsibilities

Abstract

The rapid growth  of Securities Crowdfunding (SCF) in Indonesia as an alternative to MSME financing carries inherent risks for retail investors who have limited literacy and access to information. This study aims to analyze the construction of legal protection for retail investors as well as the limits of the responsibility of the Organizer (Platform) in mitigating the risk of default of the Issuer caused by fraud or verification negligence. The research method used is normative juridical with a statutory and conceptual approach. The results of the study show that the current regulations, especially POJK Number 57/POJK.04/2020, still place the Organizer only as an administrative intermediary without the burden of significant civil liability on the material validity of the offer. The study's findings indicate that Organizers often take refuge behind exoneration clauses in digital standard contracts to shift the risk entirely to investors. This study concludes the need for legal reconstruction by applying the principle  of strict limited liability for Organizers who fail to conduct due diligence according to professional standards. It is recommended that regulators require investment guarantee fund mechanisms to create a fair and sustainable digital financial ecosystem.