Multi-Finance Companies - Private Placements - No Change

The Minister of Finance is confident that with the right regulatory framework in place Multi-finance companies can make a significant contribution to national development. Therefore, the current regulatory framework needs perfecting to facilitate this and Regulation No. 84/PMK.012/2006 has been confirmed to fulfill this need.

Multi-finance companies are defined as those companies providing services in the areas of leasing, factoring, credit cards, and consumer financing. In this regard there is no expansion of the definition. Even though the Regulation is a 'perfection' of the previous regulatory framework, the provisions relating to private placements in essence remain unchanged. Multi-finance companies can make private placements into financial sector institutions and companies up to a limit of 25% of the total capital of the receiving company.