The Risk of Misleading Information on Financial Statements of MSMEs as The Issuers in Securities Crowdfunding: Implementing BLU as Auditor to Ensure Protection of Investors

Authors

  • Zaki Priambudi Faculty of Law, University of Jember, Jember, Indonesia
  • Bima Rico Pambudi Faculty of Law, University of Jember, Jember, Indonesia
  • Natasha Intania Sabila Faculty of Law, University of Jember, Jember, Indonesia

DOI:

https://doi.org/10.30641/dejure.2023.V23.163-178

Keywords:

financial prospectus, securities crowdfunding, MSMEs, public service agency

Abstract

Securities Crowdfunding (SCF) is expected to be a fast, cheap, and massive alternative funding system for Micro, Small, and Medium Enterprises (MSMEs). However, its implementation is far from ideal. Several studies in China, Britain, and America concluded that SCF is one of the riskiest investment instruments. This is closely related to the lack of implementation of audit obligations on the financial statements of MSMEs as Issuers. To analyze the above problems, this study applied doctrinal research methods and Reform Oriented Research. This study aimed to analyze the urgency of establishing the Public Service Agency of Securities Crowdfunding (BLU SCF) in the implementation of the SCF ecosystem in Indonesia and design the idea of regulating BLU SCF as an SCF auditor. This research found that: (1) the urgency of establishing BLU SCF includes the high default risk by the Issuers, the responsibility exemption from the Issuers and the Organizers for the truth of the financial statements, and there is a potential conflict of interest between the Issuers and the Organizers; (2) BLU SCF will be authorized to audit the reports and other financial documents published by the Issuers through the Organizers. Institutionally, BLU SCF will be under the auspices of the Ministry of Cooperatives and Small and Medium Enterprises. This idea is expected to improve the practice of SCF implementation in Indonesia, by prioritizing the protection of Investors' rights to the truth of the Issuer's financial statements.

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Author Biographies

Zaki Priambudi, Faculty of Law, University of Jember, Jember, Indonesia

Zaki Priambudi is a final year undergraduate law student majoring in Business Law at the Faculty of Law, Universitas Jember. He has won several competitions for scientific papers at the national level and has several publications in Law Journals indexed in Scopus, Web of Science, and Sinta-2, as follows:

  1. Reformulasi Kewenangan, Kelembagaan, dan Kepegawaian Penghubung Komisi Yudisial: Upaya 
  2. Penguatan Pengawasan Perilaku Hakim di Daerah; Jurnal Negara Hukum Volume 12 Number 1 2022 | Dewan Perwakilan Rakyat Republik Indonesia. Sinta 2;
  3. Pemenuhan Hak atas Pelayanan Kesehatan Mental Pasca Pandemi Covid-19 di Indonesia: Sebuah Ius Constituendum? Jurnal HAM Volume 13 Number 1 2022 | Kementerian Hukum dan HAM Republik Indonesia. Sinta 2;
  4. Limiting the Legality of Determining Suspects in Indonesia Pre-Trial System. Indonesia Law Review Volume 11 Number 2 2021 | Faculty of Law Universitas Indonesia. Scopus & WoS;
  5. Mengatur Petisi di Dalam Peraturan Perundang-Undangan: Upaya Penguatan Posisi Masyarakat Terhadap Negara Dalam Kerangka Perlindungan Kebebasan Berpendapat. Jurnal Legislasi Indonesia Volume 18 Number 1 2021 | Kementerian Hukum dan HAM Republik Indonesia. Sinta 2.

Bima Rico Pambudi, Faculty of Law, University of Jember, Jember, Indonesia

A final year law students with a specialization in constitutional law at the Faculty of Law at Jember University. He is also active being speaker in lot of national educational and law events for more than 1 year. In academic writing has the following publications:
1. National Journal
a. Reformulasi Kewenangan, Kelembagaan, dan Kepegawaian Penghubung Komisi Yudisial: Upaya Penguatan Pengawasan Perilaku Hakim di Daerah. Jurnal Negara Hukum, Volume 13 Nomor 1, Juni 2022 - SINTA 2.
b. Mengatur Ombudsman Sebagai Lembaga Negara Independen di Dalam Konstitusi: Sebuah Upaya Penguatan Pengawasan Pelayanan Publik di Indonesia Al Daulah: Jurnal Hukum Pidana dan Ketatanegaraan, Volume 11 Nomor 1, Juni 2022 - SINTA 3.
2. Book
a. FK2H Law Review 2021: Dinamika Perkembangan Hukum HAM, Hukum Internasional, dan Pembangunan Hukum di Indonesia UPT Percetakan dan Penerbitan Universitas Jember, ISBN 978-623-6039-33-5.

Natasha Intania Sabila, Faculty of Law, University of Jember, Jember, Indonesia

My experience has allowed me to develop good organizational skills. My main strengths are adaptability and a good drafter and problem solver. I have expertise in technology and law as evidenced by various championships, research and internship experiences. This can be seen from the various achievements and journal publications in the fields of law and technology from national to international levels that I have achieved in the last 5 years. I also gained my leadership experience from several managerial roles in 12 organizations both on and off campus therefore I dared to take a big step to become a founder and Executive President of a Community engaged in education and social fields to bring about positive change for the Indonesian people. I try to learn something new from my experience because I believe there is always room for self-improvement both personally and professionally.

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Published

2023-06-26

How to Cite

Priambudi, Z., Pambudi, B. R., & Sabila, N. I. (2023). The Risk of Misleading Information on Financial Statements of MSMEs as The Issuers in Securities Crowdfunding: Implementing BLU as Auditor to Ensure Protection of Investors. Jurnal Penelitian Hukum De Jure, 23(2), 163–178. https://doi.org/10.30641/dejure.2023.V23.163-178

Issue

Vol. 23 No. 2 (2023): June Edition

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