Indonesia Deals Tough Blow To Established FX Firms - Blocks Broker & Information Sites

Indonesia has recently begun to publicly demonstrate objections toward FX firms, both domestic and foreign which operate within its jurisdiction. The nation's governmental information site, TRUST+, have embarked on a program of listing almost every FX firm as having complaints lodged against it. In addition, a number of main sites and representative offices of very well-known Western brokers and signal service providers are listed as being blocked in Indonesia.

This move comes after Indonesia has become an attractive destination for some retail participants in the Forex industry. Whilst the Western world's financial markets' regulators have long since set forth comprehensive, and in some cases very expensive stipulations with regard to the means by which FX firms operate, a number of the world's major brokers and ancillary service providers have been looking east toward emerging market economies.

With a largely untapped client base, sizable and young domestic population and very few hindrances in relation to government red tape, Indonesia has become an area which many retail brokers consider important. Those who have made inroads into the Asia-Pacific region have garnered a client base from the region over recent times, as was reported by Forex Magnates in detail in the Quarterly Industry Report for Q4 of 2012.

Emerging market economies still have a very long way to go before the national governments of nations such as Indonesia, implement stringent consumer protection laws and resource-heavy entry barriers such as in North America, Australia or Europe. However, this recent publication may indicate that either the Regulation of FX in some form is on the Indonesian government's to-do list, or that the country wishes to stem foreign competition in order to establish home-grown firms.

In order to go some way toward establishing the possible reasoning behind the move, Forex Magnates spoke to Ottelo Deiy, Regional Head, South-East Asia at TNC Markets, who explained that in his opinion, "The regulators have been cautious of margin FX products as investors have faced numerous difficulties with unregulated players hence the forced attack on this product."

"Domestically investors are overcharged and conditions are not favourable hence the attraction of FX and CFD trading. The regulators will be making some harsh reforms in the coming months," stated Mr. Deiy.

Indonesia may be following in the footsteps of Turkey, which back in 2009 played host to a number of OTC FX firms offering many products, and in particular binary options, to a very willing client base, with very little regulatory oversight, if any at all. Today, things are somewhat different, with Turkey having become one of Western Asia's most prominent financial markets economies, and has a very organized regulatory structure to go with it.

Decade of FX In Indonesia

Indonesia has a somewhat longer history of FX market participants operating within its jurisdiction, some of whom are indigenous. But most of them, as with companies which target a Chinese audience, originate from Russia, and were the first to enter the Indonesian market back in 2003, viewing its potential along the same lines as that of China.

The sites which the Indonesian government portal refers to are:

123belajarforex.com

a-1forex.com

campusforex.blogspot.com

fbs.com

fbsindonesia.com

fbs-indonesia.com

fxcmid.com

gainscope.com

gofbs.com

instafx.biz

instafxneo.com

instasurabaya.com

instavalas.com

jeniusforex.com

jogja-ifx.com

lampungtrading.com

livetradingforex.net

medangold.com

mysmartfx.com

nordfx.com

primaexchanger.com

primatrading.net

pundiarta.com

ramos-exchange.com

speedtrader.com

cobratrading.com

finamglobal.com

forex-mmcis.com

aaafx.com

ironfx.com

mayzus.com

scottrades.com

tusarfx.com

3tgbrokers.com

ac-markets.com

amiralmarkets.co.id

amiralmarkets.com

afbfx.com

agea.com

alpari.com

anakbawangfx.com

andalastrade.com

asiafbs.com

askobit.com

avafx.com

avatrader.com

axitrader.com

belajar-trading.com

betonmarkets.com

bforex.com

bfsforex.com

bmrckita.com

cakrafx.com

choicetrader.com

acehinstafx.bz

acehinsta.com

a-1forex.com

alinstaforex.blogspot.com

citifxpro.com

cmcmarkets.com

cmsfx.com

corsacapital.org

dukascopy.com

ecn4x.com

exness.com

fbs.com

fbsneo.com

finexo.com

forex.com

forex4u.co.id

forex4u.org

forex-a1.com

fxcast.com

fxcc.com

fxclub.com

fxcm.co.uk

fxcm.com

fxcompany.net

fxd24.com

fxdana.com

fxdd.com

fxempire.com

fxind.com

fxnet.com

fxopen.com

fxoptimax.com

fxprimus.com

fxpro.com

fxwaveranger.com

gcitrading.com

getforexrebate.blogspot.com

gfcmarkets.com

gftforex.com

hantecfx.com

hmslux.com

hotforex.com

hotspotfx.com

hymarkets.com

instaforexid.com

instafx.asia

instafxtrader.com

instapips.com

interactivebrokers.com

ironfx.com

just2trade.com

lightspeed.com

liteforex.com

easy-forex.com

lqdmarkets.com

markets.com

masterforex.org

maxofx.com

mbtrading.com

mrcmarkets.com

myfxbook.com

oanda.com

octafx.com

onlineforexbroker.biz

optionhouse.com

optionxpress.com

paxforex.com

pepperstone.com

placetrade.com

profit-fx.blogspot.com

roboforex.com

rvdmarkets.com

saxobank.com

sesefx.com

skyeastfx.com

sogotrade.com

SOURCE: https://trustpositif.kominfo.go.id/?lang=en

With this in mind, a matter for consideration for many brokers and signal providers could be that it is possible that the governments of the emerging markets of the Far East may be investigating the possibilities of raising the currently low entry barriers.

Whether this is occurring in order to protect customers, or to protect the domestic FX industry, is perhaps a moot point.