Abstract

Money market is a very important component in the financial market, since it’s involved the trading of short term borrowing, lending, buying and selling with original maturities of one year or less. One of the importances of the money market is its function to provide financing for business. This paper’s main contribution is to give a better understanding from the business law perspective on the money market; and to give a broader analysis on the financial institution including money market in Indonesia for the purpose of corporate financing. Indonesian money market needs to be rearranged to cope with the business needs. The first objective of this paper is to understand the institution of money market in Indonesia in order to cope with the business need for short term financing. The second objectives is how to develop an effective money market operation in Indonesia in order to attract potential investors.

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