Project as a Basis for SBSN Issuance

Minister of Finance Regulation No. 129/PMK.08/2011 on The Use of a Project as a Basis for the Issuance of State Sharia Securities (“Regulation”) has been issued to optimize and to improve inter-unit coordination within the Ministry of Finance in regard to preparing and using a project as a basis for the issuance of state sharia securities.

The Regulation consists of eight chapters and 20 articles.

Article 1 defines terms that are used throughout the Regulation. Under Article 1 (3), a project is defined as activities that are part of ministry and state institution programs. Pursuant to Article 1 (4), a State Sharia Securities (surat berharga syariah negara – SBSN) is a sharia-based securities issued by the state which proves investment participation in SBSN assets, in Rupiah currency or in Foreign Currency. SBSN are regulated under Law No. 19 of 2008 on State Sharia Securities (“SBSN Law”).