To assist Indonesia to develop a favorable business environment, Bank Indonesia (BI) recently issued Regulation No. 12/1/PBI/2010 on Foreign Loans for Non-Bank Companies, which loosens the requirements for non-bank companies to obtain foreign loans, and obliges only certain categories of debtors to maintain a credit rating.
The previous regulation on those subjects, BI Regulation No. 10/7/PBI/2008, required all non-bank companies seeking to a secure a long-term loan from foreign lenders to maintain a credit rating from a local or foreign credit agency; in other words, indicating that the debtor has the capacity to be responsible for debt repayment. Article 5 (2) of the 2010 regulation, however, does not extend that requirement to those companies who do not yet have a credit rating, among other things allowing new companies to obtain foreign loans with considerably greater ease.
Prior to applying for any long-term foreign-sourced loan, regardless of their credit situation, non-bank companies must submit a notification to BI to state their intention to borrow. Information required include the annual foreign-sourced loan plan (i.e., how the funds will be put to use), balance sheets, financial reports, and - if it has a credit history -the company’s credit rating.Ongoing reports to that effect must be submitted by 10 March every year.
For short-term loans, although BI requires similar notification, debtors need only report their balance sheet and financial reports every six months, no later than 10 July for the first report, and 10 December for the second report every year.
Sanctions are made available by the regulation for instances where a debtor company fails to abide by its reporting obligations to BI, although the sanctions are only vaguely described: a warning letter, or reports to the “authorized authority / institution”.Whatever their real form, sanctions will not be applied before 1 January 2012.
The regulation repeals and replaces its 2008 predecessor, and has been in force since 28 January 2010.
To assist Indonesia to develop a favorable business environment, Bank Indonesia (BI) recently issued Regulation No. 12/1/PBI/2010 on Foreign Loans for Non-Bank Companies, which loosens the requirements for non-bank companies to obtain foreign loans, and obliges only certain categories of debtors to maintain a credit rating.
The previous regulation on those subjects, BI Regulation No. 10/7/PBI/2008, required all non-bank companies seeking to a secure a long-term loan from foreign lenders to maintain a credit rating from a local or foreign credit agency; in other words, indicating that the debtor has the capacity to be responsible for debt repayment. Article 5 (2) of the 2010 regulation, however, does not extend that requirement to those companies who do not yet have a credit rating, among other things allowing new companies to obtain foreign loans with considerably greater ease.
Prior to applying for any long-term foreign-sourced loan, regardless of their credit situation, non-bank companies must submit a notification to BI to state their intention to borrow. Information required include the annual foreign-sourced loan plan (i.e., how the funds will be put to use), balance sheets, financial reports, and - if it has a credit history -the company’s credit rating.Ongoing reports to that effect must be submitted by 10 March every year.
For short-term loans, although BI requires similar notification, debtors need only report their balance sheet and financial reports every six months, no later than 10 July for the first report, and 10 December for the second report every year.
Sanctions are made available by the regulation for instances where a debtor company fails to abide by its reporting obligations to BI, although the sanctions are only vaguely described: a warning letter, or reports to the “authorized authority / institution”.Whatever their real form, sanctions will not be applied before 1 January 2012.
The regulation repeals and replaces its 2008 predecessor, and has been in force since 28 January 2010.
Ada Pertanyaan? Hubungi Kami 
Professional Solutions
University Solutions
Pro
My Workspace
Pro AI
Terfavorit
Allex QnA
Pro Compliance
