The products traded on Gotrade Indonesia are foreign stock derivative contracts under the Order Routing to Foreign Exchanges (PALN) scheme. Initially, this scheme was regulated by the Commodity Futures Trading Regulatory Agency (Bappebti), as it fell under the domain of futures and commodity trading.
In general, the trading of financial products in Indonesia is subject to the regulation of two different authorities:
OJK (Financial Services Authority) supervises the capital market sector for the trading of securities, including stocks, bonds, and mutual funds.
Bappebti, which operates under the Ministry of Trade, supervises the trading of futures contracts and commodities.
The PALN concept is not new. It has been recognized since UU No. 32 of 1997 concerning Commodity Futures Trading, and was later strengthened through UU No. 10 of 2011. Furthermore, Government Regulation (PP) No. 49 of 2014 emphasized Bappebti’s role in determining the list of approved foreign futures exchanges and derivative contracts that can be routed.
In early 2022, Bappebti issued Regulations No. 1 and 2 of 2022, which introduced a new mechanism for the PALN scheme:
Bappebti Regulation No. 1/2022 → facilitates the trading of futures contracts in fractional values, allowing transactions to be made in small amounts.
Bappebti Regulation No. 2/2022 → opened up opportunities for trading derivative contracts on foreign stocks listed on NASDAQ and NYSE, including Google, Tesla, and Apple.
To support this implementation, Gotrade Technologies partnered with the Jakarta Futures Exchange (BBJ) and PT Kliring Berjangka Indonesia (Persero) through a cooperation agreement on an application-based trading system on March 28, 2022. In addition, Gotrade Indonesia also partnered with a licensed futures broker, PT Valbury Asia Futures (VAF), with license number 184/BAPPEBTI/SI/II/2003.
However, as of January 10, 2025, there has been a fundamental change in supervisory authority. Based on the P2SK Law and its derivative regulation POJK No. 1 of 2025, supervision of PALN stock derivative contracts has officially been transferred from Bappebti to OJK.