Primary Dealer System - Increasing the Rate of Development of the Market

The Minister of Finance (MoF) has issued Regulation No.108/PMK.08/2007, which in effect is a re-regulation of the activities regulated under MoF Regulation No. 144/PMK.08/2007 (see ILB 16/1/2007), for the purpose of increasing development of the State Debt Securities Market (Surat Utang Negara / SUN). The Regulation also includes 9 Attachments. The Attachments are the requisite standard forms and each provide an example of how the forms are to be completed and how the relevant calculations are to be made where there is a requirement to provide this information.

Primary Dealers will either be a General Bank or a Securities Company that has satisfied the requirements for being appointed as a primary dealer. The conditions for appointment are listed and they vary slightly between general banks and securities companies, particularly with regard to the amount of capital required.