In a Nutshell: Indonesia's Money Market

Overview

Money markets represent one source whereby short-term funding or investment facilities can be obtained. The term “money market” itself covers transactions which involve the buying and selling of assets that can be easily converted into cash on a short-term basis. Examples of uses of the money market include businesses who require a certain amount of cash for a couple of months until a big payment arrives, banks who are looking to invest money that depositors may still withdraw at any moment, or governments which are trying to meet their payrolls in the face of large seasonal fluctuations in their tax receipts. For all of these examples, short-term liquidity transactions undertaken through money markets usually represent the best solution.[1]