Jakarta – The Commodity Futures Trading Supervisory Agency (Bappebti) has again blocked 68 domains of entity sites in the commodity futures trading sector that do not have permission from Bappebti.
Head of CoFTRA, Sidharta Utama in an official statement, quoted Monday (15/2/2021), said that in 2021, Bappebti will further increase observation and supervision of activities in commodity futures trading that do not have permission from Bappebti. This is aimed at protecting the public from unlicensed commodity futures trading investments that have the potential to harm, as well as providing legal certainty for the public and business actors in commodity futures trading, “he said, as quoted by industry.co.id from CNBC Indonesia.
The site domain, which was blocked in January 2021, is still dominated by foreign brokerage internet sites. It is important to know, even though they claim to have the legality of a foreign regulator, any party that is legally domiciled in Indonesia and / or abroad who has not obtained a business license from Bappebti is prohibited from conducting Futures Trading business activities. For example, through promotions or advertisements, training, and meetings regarding futures trading in Indonesia.
Head of Legislation and Enforcement Bureau of CoFTRA, M. Syist, explained that CoFTRA has made restrictions so that internet sites cannot be accessed in Indonesia. This futures broker usually uses an introducing broker as a representative in Indonesia.
“They confidently offer commodity, forex and index futures contracts in Indonesia on the pretext that they have obtained legality from the regulator where the company originates. Of course this violates the provisions of the prevailing laws and regulations in Indonesia and has the potential to harm society,” added Syist.
In addition to the overseas futures broker site domain, there is also a site domain of entities that carry out binary options activities. Based on Law No. 10 of 2011 concerning Amendments to Law No. 32 of 1997 concerning Commodity Futures Trading, an option is a contract that gives the buyer the right to buy or sell a certain futures contract or commodity at a predetermined price, amount and period of time by paying a premium.
Options in the context offered by brokers to traders / investors through binary options are limited to choosing a prediction of rising or falling prices. This is based on a certain time period to get profit or otherwise the trader / investor experiences a loss. So that the mechanism carried out through binary options is not in accordance with the provisions of laws and regulations in the field of commodity futures trading in force in Indonesia.
“Given that binary options currently circulating in society do not have the legality of regulators in Indonesia, if a dispute occurs between a customer and a binary option application provider, Bappebti as the regulator in the futures trading sector cannot facilitate the customer during mediation,” he explained. Syist.
In addition, the binary options application provider does not have a representative office in Indonesia. So, if the community feels aggrieved, neither party can be held responsible. Its legality abroad is also uncertain and requires a lot of money in settling disputes between customers and providers of binary options applications.
Before deciding to invest, the public is expected to always learn about the company’s background, procedures for transactions and dispute resolution, and the commodity futures contracts offered.
People who are going to invest in commodity futures trading must first know the representative of a futures broker who has received permission from Bappebti, the documents of the agreement and the risks faced, and not easily tempted by large profits in a short time and beyond reasonable limits.