To minimize vulnerability to financial risks, Indonesia requires market participants to comply with established principles and standards.

The Indonesian Institute of Accountants has issued guidelines in line with international accounting standards. Indonesian accounting standards also include provisions for shari'a banking.

The Capital Market and Financial Institution Supervisory Board (BAPEPAM-LK) has issued additional disclosure and reporting requirements.

The Indonesian Bankruptcy Law provides the legal infrastructure for bankruptcy, which can be settled either through court proceedings or informal mechanisms. Creditors may file a bankruptcy petition or submit a lawsuit to the relevant district court based on a breach of contract. During the 1997 Asian financial crisis, the Government established the following informal mechanisms to facilitate negotiations between debtors and creditors:

• The Jakarta Initiative Task Force to provide corporate debt restructuring and workout plans to both creditors and debtors.
• The Indonesian Debt Restructuring Agency to help market-oriented corporations resolve their debt by providing them with fixed exchange rates to strengthen the value of the rupiah.This agency’s mandate expired in 2006.
• The Indonesian Bank Restructuring Agency to facilitate bank and loan restructuring by taking over a bank's non-performing loans and injecting new funds to recapitalize them.

Provisions for insolvency are also included in the Capital Market and Financial Institution Supervisory Board (BAPEPAM-LK) Rulebook.

The Indonesian Company Law of 1995 established the legislative framework for corporate governance in Indonesia. In August 1999, the National Committee for Corporate Governance was created to develop best-practice guidelines and a code of corporate governance.

IDX also implemented corporate governance regulations for publicly-listed companies, including reporting standards.

The statutory basis governing all private transactions is the civil code. An English language translation of the Indonesian Civil Code and a summary of relevant contract law can be found by following the links below.

The Capital Market Law (Law 8/1995) provides the basis for proper market practices in Indonesia. It also identifies violations, including fraud in buying and selling securities (Article 90); market manipulation (Articles 91–92); and insider trading (Articles 95–98).

BAPEPAM-LK is responsible for the guidance, regulation, and supervision of Indonesian capital markets under Article 3.1 of the Capital Market Law. BAPEPAM-LK has the authority to license and issue rules for market participants, including rules on codes of conduct.

Linked below are BAPEPAM-LK rules in relation to ethical market practices, including: (i) Code of Conduct for Securities Companies Acting as Broker Dealers, (ii) Code of Conduct for Securities Companies Acting as Underwriters, (iii) Prohibited Investment Advisors Conduct, and (iv) Prohibited Investment Manager Conduct.