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Jakarta Post

Protection planned for securities investors

  • Ika Krismantari

    THE JAKARTA POST

JAKARTA   /   Tue, January 27 2009   /  09:35 am

Amid the huge losses suffered by local investors through risky investment products issued by banks, a move by the authorities to jointly certify the products before they go public could be a case of too little, too late. Bank Indonesia and the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) are teaming up to regulate derivative investment products offered by both local and foreign banks. Linda Rahman, BI bureau chief for financial systems stabilization, said recently banks that planned to offer any investment products would have to seek approval from the central bank. The products will also be scrutinized thoroughly by Bapepam-LK before being offered to investors. “Currently, such products, especially those from overseas, can enter Indonesia without our knowledge,” Linda said. “They can just come in like that and seek investors here....