According to the Law of the Republic of Indonesia No. 8 concerning the Capital Market, guidance, regulation, and day-to-day supervision of capital market is provided by Bapepam in order to implement an orderly, fair, and efficient capital market activities and protect the interests of investor and public.

According to Article 3 Minister of Finance Decree No:503/KMK.01/1997 concerning Organization of Capital Market Supervisory Agency, the functions of Bapepam are:

-	drafting Capital Market rules and regulations;
-	guiding and supervising any Person granted business license, approval, registration from Bapepam and other Person related to Capital Market;
-	establishing disclosure principles for Issuers and Public Companies;
-	settlement of the objection by Person imposed sanction by Stock Exchange, Clearing Guarantee Corporation, and Central Securities Depositary;
-	establishing Capital Market accounting standards;
-	protecting technical implementation Bapepam's main function according to the policy required by Minister of Finance and based on the Law.

In implementing the function, Bapepam has the authority to grant:

-	licenses
-	approvals
-	effective registrations to capital market participants
-	provide effective registration statement								source : www.bapepam.go.id