Title: Corrupt practices in Capital Market distinctively in State Owned Enterprise and its potential to be occurred and what

kind of constraint might be face to make it unrevealed This thesis points out and in specific defines how corrupt practices in capital market happened especially for state owned enterprise stocks. Moreover it will put a lot more stressing to analyze how these corrupt practices might be happened and how to solve it with so many legal constraint to make it unrevealed. In specific accordance with Law decree number 31 years 1999 about Corrupt practices act. This thesis was made as a qualitative-based research which has been designed with analysis and descriptive explanations to make it as formal juridical thesis. This research was designed and motivated from many corrupt practices act which happened in capital market. Corrupt practices can categorized as capital market wrongful misconduct as had been regulated in accordance with Law Decree number 8 year 19995. However it must be admitted that to implement the law and uphold it researchers may face many constraints either from overlapped regulation or cross sectional authority which often claimed between institutions and Capital Market Supervisory Board as the sole regulator in this field. A few cases in capital market for instance divestiture process of National Gas Company and also PT Krakatau Steel's Initial Public offering process had showed slight indication about corrupt practices during the process. Those Corrupt practices can be defined as Market manipulation, Insider trading and non transparent transactions to public. The implementation of article 2 and 3 of law decree number 31 year 1999 about corrupt practices act can only be implemented for these cases with limited usage. In specific how to count state loss by Indonesia National audit committee. Therefore it is needed a heightened seriousness from law enforcement agencies to solve these ongoing trends in corrupt practices act in capital market. The law enforcement agencies should be mindful that no cases until now been solved in capital market by using corrupt practices legal framework was caused by lack of coordination between Corruption Eradication Commission as the sole national body who had a wide discretion to solve corrupt practices cases with the capital market supervisory board. A new legal memorandum of understanding might be needed to solve one of these legal constraints.