The development of investment in Indonesia keeps growing positively, one of the investment that is developing rapidly is capital market. Capital market is a place where buyer and seller of the securities can make transaction which is listed on the stock exchange. Along with the rise of the members in the Indonesia capital market, it is also often found violations in the Indonesia capital market. One of the violation frequently found was the practice of insider trading, insider trading is the trading of a company’s stocks or other securities by individuals or some people with access to confidential or non-public information about the company or based and motivated by the presence of an insider information. Establishment of insider trading regulation are not directly able to prevent such action in the indonesian capital market, because the practice of insider trading is hardly to prove. Many of insider trading cases in Indonesia also have never been given a imprisonment sanction. This thesis is using a statue approach and the comparative approach and any other related law. Therefore, this thesis discussed on the prevention and the application of laws against the practice of insider trading and legal protection for victims of the practice of insider trading in the Indonesian capital market