The government must ban the Derivative Trade in the Stock Exchange

The government must ban the derivative trade in the stock exchange. Although the condition for finance was uncertain, better the activity on the floor of the stock exchange should not stop completely, was enough with the restriction, especially to ban the derivative trade. These efforts were needed in order to the negative sentiment not happen was bigger, especially in the domestic level. To overcome the negative sentiment globally, the government could indeed wait for the situation to be stable.

However especially for the domestic negative sentiment, the government must act. “Don’t suspend the stock exchange too long, because when the stock exchange was opened, everyone in the panic situation,” was like this it was proposed Ikhsan Modjo, Director Institute Development of Economics and Finance (INDEF), Friday (10/10) after the Presentation of the Global Crisis and Indonesian Economics in FISIP Airlangga University of  Surabaya.

The restriction especially by banning the derivative transaction, including inside short selling. The restriction, said Ikhsan, also was valid for the foreign transaction. “Lest the panic in the country continued to continue so as sectors” of the “industry took part in being stricken,” he said. With the position of the stock exchange that in the situation idle when the stock exchange was closed, practical the employee of the security only carried out the activity that was linked with administration. Estimated, each one stock exchange day was closed, the security’s turnover wiped approximately 50 percent. “Although we have been careful by reducing the transaction since days beforehand, but the contraction of the turnover must happen,” said Manager Trimegah Securities, Natanael Beny Prasetyo.

To overcome so that the Indonesian economy could remain, INDEF gave the recommendation to the government to raise the ceiling of the individual of loan savings to LPS from Rp.100 million became Rp.250 million. These efforts to increase the customer’s belief and so that they do not pull the large-scale fund

According to him, in the condition as it is now during the fluctuation in the high money market, the influence on the real sector faster was felt. This happened when the monetary crisis 1997-1998. The cash flow to the thing market to was disturbed resulting from the interest and depreciation Rupiah that rocketed. “Here the most affected sector his impact covered the manufacture, the mine, the service, and agriculture,” said Ikhsan.

These sectors were the promoter of the growth and the most manpower absorber. When the condition for finance experienced the disturbance, practical immediately influenced the growth, the absorption of manpower, as well as the eradication of poverty. “Estimated by us the number of unemployment was not too influential because the person at once chose to look for the other work, but the certain poverty figure will increase,” he said while added that up until February 2008 the unemployment figure 8,2 percent, whereas up until June 2008, the poverty figure in Indonesia 15,48 percent.