Account Receivables and State Bonds Buy-Back - Ministerial Regulations

The Minister of Finance has issued 2 Regulations dealing with the auction of account receivables on the prime markets and buy-back auctions for state bonds, Regulation Nos. 26/PMK.08/2007 and 27/PMK.08/2007 respectively. It is expected that both of these Regulations will provide greater clarity and legal certainty for participants in these auctions.

Regulation No. 26 sets out the provisions for auctions. Any party may participate in the auction process however Bank Indonesia (BI) may only buy State Treasury Certificates on the Prime Market and in its own name. The offer process may be either competitive or non-competitive meaning that the mechanism for calculating price will be either multiple price or weighted average price respectively.