Not yet 2 months, Bappebti Block 68 Illegal Brokerage Sites in indonesia

Bappebti has blocked 68 domains of unlicensed or illegal commodity futures trading entities.

It’s not even two months that the Commodity Futures Trading Supervisory Agency (Bappebti) of the Ministry of Trade (Kemendag) from indonesia has blocked 68 domains of entity sites in the field of commodity futures trading that are not licensed or illegal in indonesia.

Head of Bappebti Sidharta Utama said the blocking was in collaboration with the Ministry of Communication and Information Technology (Kemkominfo) and companies where domain name registration in Indonesia. In 2020, Bappebti had blocked 1911 website domains.

“In 2021, Bappebti will further increase the observation and supervision of activities in the commodity futures trading sector that do not have a license from CoFTRA. 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, “said Sidharta in his official statement in Jakarta, Friday (12/2/2021).

According to Sidharta, the site domain that was blocked in January 2021 is still dominated by foreign brokerage internet sites. Although claiming to have legality from foreign regulators, any party legally domiciled in Indonesia and / or abroad who has not obtained a business license from Bappebti is prohibited from carrying out Futures Trading business activities. For example, through promotions or advertisements, training, and meetings regarding futures trading in Indonesia.

Head of the Bureau of Legislation and Enforcement of CoFTRA, M. Syist, explained that his party had made restrictions so that internet sites could not 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.

He added, in addition to the overseas futures broker site domain, there is also a site domain for 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 these binary options brokers 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 circulating in the community today 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,” 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.

“Do not be easily tempted by large profits in a short time and beyond reasonable limits. Make sure before deciding to invest, first know the profile and legality of the company, by accessing the website: https://www.bappebti.go.id, “he said. (RAMA)