THE URGENCY OF MINIMUM FEE DETERMINATION FOR UNDERWRITER BOND COMPANIES TO PREVENT THE POTENTIAL OF UNFAIR COMPETITION IN THE CAPITAL MARKET IN INDONESIA

Winarsih
S.H, University of Indonesia, INDONESIA, winarsih.winnn@gmail.com

Abstract
This research aims to analyze the potential of unfair competition in the underwriter companies of bond issuances and to analyze the urgency of the minimum fee determination to prevent the potential of unfair competition in the capital market in Indonesia. The main method uses in this research is literature study to obtain the objective results. Literature study to do towards some regulations, journals, scientific papers, newspapers and other sources which are further analyzed by the researcher. While the type of research used is normative juridical. The results of this research are: The first, there is potential of unfair competition in the underwriter companies of bond issuances that enables small companies are bankrupt. This is due to the underwriter tariff is too low and not worth with the risk borne. For example the fee for underwriters reaches zero percent, whereas the underwriter's duties are so numerous and the risks are huge, especially in full commitment agreement. This ways are used by the large securities companies to switch off the opponent. The second, the minimum fee determination of underwriter companies is very important to prevent unfair competition. This is due to there is no regulation concerning the minimum fee of underwriter companies in Indonesia. Despite there are the provisions of Article 20 of Law No. 5 of 1999 about Prohibition of Monopolistic Practices and Unfair Competition which prohibits businesses do selling at a loss, but the arrangement concerning about fee for the underwriter is not necessarily being a subject to this regulation because the mechanism entirely submitted to the market. Under these conditions, the government should make a minimum threshold for the underwriter companies to prevent unfair competition in the form of regulation. 

Keywords: Underwriters Companies, Bond, Unfair Competition, Regulations.