Importance of BAPPEBTI Permit in Trading
Futures trading that traders do through forex brokers in Indonesia will always be under the supervision of the Commodity Futures Trading Regulatory Agency (BAPPEBTI). In fact, this supervisory body still exists and will continue to exist with its own authority, not merged into the OJK as is the case with BAPEPAM-LK (Capital Market and Financial Institution Supervisory Agency). That way, forex brokers who have obtained BAPPEBTI's permission to operate in Indonesia no longer need to ask for any permission from the OJK to operate, but only have permission from the supervisory body.
The Importance of BAPPEBTI Permits
BAPPEBTI is an official government agency that operates under the Ministry of Trade of the Republic of Indonesia where this supervisory body has been directly connected with Bank Indonesia (BI), the Financial Services Authority (OJK), the Ministry of Communication and Informatics, and legal institutions such as the Police.
In order for a broker to be declared legally operating in Indonesia, the broker must already have official permission from BAPPEBTI which in this case is a mandatory requirement that must be met by every broker operating in Indonesia.
In addition to obtaining permission from BAPPEBTI, usually the broker will also be registered as a member of one of the futures exchanges in Indonesia such as the Jakarta Future Exchange (JFX) and the Indonesia Commodity & Derivatives Exchange (ICDX).
Based on the law, forex trading is included in the futures trading area which falls under the authority of BAPPEBTI which has been regulated in Law no. 32 of 1997 concerning commodity futures trading.
BAPPEBTI Authority Based on Law
1. Issue business licenses for futures brokerage companies and futures broker representatives.
2. Issue rules and regulations.
3. Conduct inspections of permit owners and parties suspected of committing violations.
4. Supervise promotional activities to avoid misleading advertisements.
5. Facilitate settlement of cases related to futures trading.
In general, BAPPEBTI regulations are applied to ensure the quality of brokerage services to ensure the safety and interests of traders as customers of a broker when making transactions. This due diligence is not only carried out by brokers during the regulatory registration process, but will continue to be carried out periodically to monitor broker performance from time to time. So, it can be concluded that the BAPPEBTI regulation on this forex broker will further ensure the quality of service and security at a level that is in accordance with national standards that will be provided by the broker.
Therefore, it is important for traders to choose a broker that has been regulated so that their funds and every transaction that traders make can be well protected. With the supervision from CoFTRA for legal brokers in Indonesia, of course, this is a breath of fresh air for traders who are interested in trading with official and regulated brokers. Even so, not a few of the fake forex brokers are still hanging around without having an official license to operate. There are quite a lot of bogus investments with forex (foreign exchange) and gold investment modes which are still the prima donna of futures trading in Indonesia.
In fact, despite knowing things like this, not a few of the people are still often trapped by this investment-style scam because of the high profits that are promised and tempting for them. Not infrequently, the fraudsters say many sweet promises of profits tens or even hundreds of times the deposited capital. Until finally, the dream of getting rich quick made the victims willing to give up their savings in the hope of multiplying profits. Even though there are so many fake brokers still active out there, that doesn't mean traders can't find the best forex brokers for traders to trade.
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