Financial

Instruments &
Derivative
Group 5 :
• Vania Azalia Calista (1810533010)
• Devi Yulia Sari (1810533017)
• Fadilla Yonandes (1810533021)

http://www.free-powerpoint-templates-design.com
Financial Instrument
Financial instruments are financial contracts of different nature made between
institutional units. These comprise the full range of financial claims and liabili-
ties between institutional units, including contingent liabilities like guarantees,
commitments, etc. Financial asset is defined as any contract from which a
financial claim may derive for one party and a financial liability or participation
in equity for another.
Financial instrument
Financial Instruments
Financial Assets Other Financial Instruments
 SDRs  Letters of guarantee
 Monetary gold  Letters of credit
 Currency  Financial commitments
 Deposits  Pledged financial assets
 Securities other than shares
 Borrowings
 Loans
 Shares and other equity
 Other accounts receivable/payable
 Financial derivatives
Financial Assets Monetary Gold and SDRs
Monetary gold- Monetary gold consists only of standard bullions
of gold held by the central bank or government as part of official
reserves. Monetary gold, therefore, can be a financial asset only
for the central bank or government.

SDRs – SDRs are international reserve assets created by the IMF

and allocated to member countries to supplement existing official
reserves. SDRs are not treated as the IMF’s liability. SDRs are held
only by the IMF member countries and by a limited number of
international financial organizations.
Currency - Currency represents notes and coins in circulation,
which are of fixed nominal values and have no dates of repayment.
Issued notes and coins are considered liabilities of the central bank.
Generally, currency is used for making payments.

Deposits - Deposits include all claims on the central bank and other
depository corporations, represented as bank deposits. In some
cases, other financial corporations may also accept deposits.
Securities other than shares are negotiable instruments in the
financial market serving as evidence that units issuing such
instruments have assumed obligations to settle by means of
providing cash, other financial instrument or some other item of
economic value.

Opposed to time deposits, borrowings are less liquid, because

lender's claim on collection of loan is due to some restrictions,
unless otherwise provided by the agreement. In a borrowing
transaction, the lender will earn interest against the amount
provided.
Loans are financial assets that are
• created when a creditor lends funds directly to a debtor (bor-
rower)
• evidenced by non-negotiable documents.

Shares are financial instruments that represent or provide evidence

on ownership rights of the holders over enterprises or organiza-
tions, including financial institutions.

Accounts receivable/payable include trade credits, advances and

other receivables or payables. Trade credits comprise trade credit
extended directly to buyers of goods and services (enterprises, gov-
ernment, NPISHs, households, and nonresidents).
 For financial instrument transactions, some of the tax treatment in-
struments are as follows:

• Stock
For the sale of shares on the stock exchange, a Final Income Tax is in accordance with Ar-
ticle 4 paragraph 2 of the Income Tax Law with implementing regulations PP No. 41 of 1994
jo. PP No. 14 of 1997.
For the sale of shares outside the stock exchange, capital gains are subject to tax according
to the general provisions of income tax
• Bonds (Surat Utang dan Surat Utang Negara)
The discount of the Bond is subject to the Final Income Tax in accordance with Article 4
paragraph 2 of the Income Tax Law, Jo. PP Number 16 Year 2009, Jo. PMK 85 / PMK.03 /
2011, Jo. PMK 07 / PMK.011 / 2012.
Derivative Transactions
Derivative transactions are transactions on instruments that are deriv-
atives of basic financial instruments so that the value of these deriva-
tives is based on fluctuations in their underlying assets.

In a more specific sense, derivatives are financial contracts between 2

(two) or more parties in order to fulfill the promise to buy or sell assets /
commodities which are traded as objects at the time and price which is a
mutual agreement between the seller and the buyer. The future value of
the traded object is greatly influenced by its parent instruments in the
spot market.

Derivative instruments are often used by market participants (financiers

and securities companies) as a means to hedge (hedging) of their portfo-
lios.
Cause Of Action

• UU No.8 Tahun 1995 tentang Pasar Modal

• Peraturan Pemerintah no. 45 tahun 1995 tentang
Penyelenggaraan Kegiatan di Bidang Pasar Modal.
• SK Bapepam No. Kep.07/PM/2003 Tgl. 20 Februari 2003
tentang Penetapan Kontrak Berjangka atas Indeks Efek sebagai
Efek
• Peraturan Bapepam No. III. E. 1 tgl. 31 Okt 2003 tentang
Kontrak Berjangka dan Opsi atas Efek atau Indeks Efek
• SE Ketua Bapepam No. SE-01/PM/2002 tgl. 25 Februari 2002
tentang Kontrak Berjangka Indeks Efek dalam Pelaporan
MKBD Perusahaan Efek
• Persetujuan tertulis Bapepam nomor S-356/PM/2004 tanggal
18 Februari 2004 perihal Persetujuan KBIE-LN (DJIA & DJ
Japan Titans 100)
Implementation

In article 4 of PP no. 17/2009 explained that further provisions

regarding the procedures for collection, deposit and income tax
reporting on derivative transactions in the form of futures
contracts traded on the exchange are regulated by the regula-
tion of the finance minister (PMK) PP no. 17/2009 itself regu-
lates the existence of an income tax of 2.5% of the initial
margin and the clearing agency acts as a collector, depositor
and reporter.
Thank
You!!