In December 2015, the Forex exchange reserves in Indonesia had touched a whopping 105,900 USD million that was tipped as the largest figure since July 2015. The Foreign Exchange Market in Indonesia has successfully been promoted as one of the potent ways to earn money fast. Investors in the country have been looking for quick money and the Forex market promised them fast money for sure. Let us take a look at the forex market in Indonesia.
The Forex Market in Indonesia
It’s the local futures brokers who have played a crucial role in promoting the forex market in Indonesia. A forex broker Indonesia typically offers services both online and offline and is also backed by either a representative office or master IB. The leading trading brokers in the country offer local telephone numbers for their dealing desk.
The Indonesian traders can hypothetically be divided into two main categories. There is one segment that is absolutely comfortable dealing with the risks associated with the forex broker or the products and is in favor of regulated solutions led by FSA. Indonesian investors are also known to rely heavily on Singapore and Australian regulated brokers. Then there is that other section of investors that prefers low-cost solutions. They just want to trade fast and not face any hassles during the initial period.
The Indonesian currency market: A Few Facts (Past and Present)
The capital market of the country is fairly developed. It was the Dutch Colonial government that supervised this market way back in the year 1912 but had been shut down during the World Wars. The Capital Market Supervisory Agency had been established to take care of the functionalities of the Foreign Exchange Market as it was reopened in 1977. The particular sector had been privatized in the year 1992 with new ownership at the helm of things. The privatization of the company was a direct result of the improvement of the economy.
The stocks featuring in the Indonesian market include traditional commodities like energy and industrial materials. The banks and other financial institutions enjoy the largest share in the market – standing at 25.23%. Industrial Materials, Consumer Goods, and Energy have 20.03%, 14.71%, and 13.72% shares respectively.
Very interestingly, the Forex market has flourished in Indonesia, even though the country has people living below $2 per day. Perhaps the success of the forex industry is attributable to the presence of strong private and government sectors in the country.
How should you select a Forex broker in Indonesia?
Today, if you are on the lookout for a reliable forex broker in Indonesia, make sure you are making a selection only after conducting thorough research on the background of the broker. There is no dearth of forex brokers functioning in Indonesia. However, not all of them will offer you an equal quality of services. So, it is imperative on your end to ensure that you are doing your research properly before opting for a service.
Hope we have been able to help you. Good luck!