The Problems of Structured Product and its Regulations in Indonesia
Sutrisno, Bismar Nasution, Zulkarnain Sitompul, Tan Kamello, Sunarmi, Mahmul Siregar, Polin L. R. Pospos

Abstract
Derivative is one of financial innovation product. Development of that derivative innovation has facilitated the growth of financial types, especially financial instrument in structured product. This derivative transaction have raised many problems in 2008 in Indonesia, some of them put derivative transaction as a gambling. Derivative transaction is like two sides of a coin. The first side could be hedging. As a hedging means there is a guaranteed value of wealth which gives security from currency fluctuation. While the other side being speculative product that has gambling unsure. Since derivative (structured product) dispute in 2008-2009, Monetary Authority has issued Bank Indonesia Regulation. PBI No. 11/26/PBI/2009 that established on 1st July 2009, about the principles of prudential regulation on implementation of structured product activity by commercial bank. Then the regulation followed by another regulations related to principles of prudential regulations of derivative transaction. All of these regulations contain are prohibitions. The thesis will be discused about the efficient rules made should not only contain prohibitions, but also the advantages, how to make parties better off than they were before. Therefore it is hoped with efficiency achievement, law will be as a tool of social engineering in Indonesia.

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