New obligations for Credit Underwriting Companies

Minister of Finance Regulation No. 99/PMK.010/2011 on the Amendment of Minister of Finance Regulation No. 222/PMK.010/2008 on Credit Underwriting and Re-underwriting Companies (“2011 Regulation” or “Regulation”) has been issued to create a more comprehensive and prudent regulation, in order to advance the underwriting industry, which benefits the public.

The regulation, as an amendment of Minister of Finance Regulation No. 222/PMK.010/2008 on Credit Underwriting and Re-underwriting Companies (“Regulation 222/2008”), amends nine articles, introduces seven new articles, and deletes three articles.

Article 3 of the 2011 Regulation introduces several new activities that may be conducted by a guarantor. Previously, Article 3 of Regulation 222/2008 only stipulated seven activities, whilst the 2011 Regulation stipulates 13 activities. The new activities are, among others, trade transaction guarantees; bank guarantees; letter of credit guarantees; and custom bond guarantees.