ABSTRACT
The aims of this research is to know the protection of float funds in the regulation of the payment system in Indonesia and how to optimize the protection of float funds in order to mitigate insolvency risk. This research will examine the regulation relating to float funds, which has seen tremendous expansion in recent years. However, until today, the float fund does not yet have an optimum protection to mitigate risk of insolvency. Therefore the urgency of the protection of float fund through an update of regulation should be of concern, that is the necessity of insured protection towards float fund, as well as regulation on the use of float funding investment returns. This research is descriptive analytic and uses normative juridical approach by prioritizing the analysis of secondary data in the form of primary source of law that is laws and regulations;secondary source of law such as journals and other previous research;and tertiary source of law. Next, the received data is analyzed qualitatively and juridical. The conclusion of this research are by regulation, the protection of float fund has not been conducted optimally, a concrete effort is needed from the regulator to optimize the protection of float fund to mitigate the risk of failure of payment due to insolvency by insurance protection, and regulation on the use of float fun investment returns.