The Indonesian Capital Market Law and the Capital Market and Financial Institution Supervisory Board (BAPEPAM-LK) rules detail prohibited market activities such as fraud, market manipulation and insider trading.

In December 2006, BAPEPAM-LK issued new rules to improve transparency in the corporate bond markets. The new regulation specifies that the issuers of corporate bonds should grant easier access to authorities, rating agencies and investors on their bond ratings and other bond-related information.

BAPEPAM-LK further signed a Memorandum of Understanding (MOU) with the Corruption Eradication Commission in December 2006 to strengthen anti-corruption policies in the capital markets. The MOU will allow the two institutions to share information, conduct training of personnel, update information on government officials’ assets and coordinate performance of their respective institutions.