Inspecting Infrastructure Financing Companies

The Head of Capital Markets and Financial Institutions (Bapepam-LK) recently issued Regulation No. PER-02/BL/2012 on Inspection Guidelines for Infrastructure Financing Companies (“Regulation”). The Regulation implements Article 30 (3) of Minister of Finance Regulation No.100/PMK.010/2009 on Infrastructure Financing Companies (“Minister Regulation”). Article 30 (3) orders the issuance of a Bapepam-LK Regulation to regulate the procedures for inspecting infrastructure financing companies.

Pursuant to Article 1 (2) and 2 (1) of the Minister Regulation, an “Infrastructure Financing Company” is defined as a legal entity established specifically to finance infrastructure projects through direct lending, refinancing, and subordinated loans.  Article 1 of the Regulation stipulates that an “Inspection” is a series of activities to collect, search, process and evaluate data and information related to the activities of an infrastructure financing company (“company”).