Why don't foreign brokers have branch offices in Indonesia?

Indonesian Forum
A
Awaludin Alif
21 Apr 2021, 10:30 685 Views
Why don't foreign brokers have branch offices in Indonesia?
With a population of 270 million people, Indonesia is a large market. Why don't foreign brokers make it easier for Indonesian clients with administrative matters or complaints by providing representative offices in Indonesia?

3 Answer

M
martin 22 Apr 2021, 20:27

@ Awaludin Alif:

Regarding this, according to government regulations, brokers operating in Indonesia must obtain an operating license from Bappebti, so they must be regulated by Bappebti. Meanwhile, taking care of the license is not easy. There was once a foreign broker who tried to arrange it, but it did not materialize.

As far as we know, there are several foreign brokers who have representatives in Indonesia, mostly through partners (their affiliates and IBs.
Read also: Broker Affiliate Business and Forex IB

M
Megha 29 Apr 2021, 16:08
Is it because the requirements in Indonesia are strict? Or is it simply a different system? As far as I know, local brokers require large capital, unlike foreign brokers, and also have more promotions.
M
martin 04 May 2021, 00:04

@ Megha:

- Is it because the requirements from Indonesia are heavy?

Regarding that, please ask Bappebti directly, what are the requirements for a broker to be able to operate in Indonesia.


- … Or is it just because the systems are different?

What system are you referring to?

 

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