The Regulation of Disclosure Principle in Equity Crowdfunding (Between Indonesia and United States of America)

Abstract

Technological development greatly makes it easy for users to get benefit from it, including in financial technology (FinTech), which has also led to the innovation of Equity Crowdfunding (ECF). ECF is a new financing method seeking funding for MSMEs business development. In some developed countries such as the United States, the ECF has a systematic regulation of the disclosure principle. This research focuses on the comparison of the disclosure principle between the implementation of Equity Crowdfunding in Indonesia and the United States. This research method is based on normative legal research or library research. These rules are intended to protect the process of organizing the ECF legally and professionally. In Indonesia, the ECF has just developed and has undergone two regulatory changes, from POJK No. 37 2018 to POJK No. 57 of 2020. The regulation of the disclosure principle in Indonesia is still not clear enough compared to the United States which is based on Title III JOBS Acts 2012. Thus, this study will explain the comparison between the two countries which are Indonesia and the United States, regarding the regulation of the disclosure principle in Equity Crowdfunding on the basis of law, supervisory institutions, prospectus/Bidding Documents, the minimum amount of fundraising bid, financial reports, supporting professions, and investor protection, bid, financial reports, supporting professions, and investor protection. Keywords: Regulation, Disclosure Principle, Equity Crowdfunding, Comparison, Indonesia, United States of America