Provisions on Primary Dealers of Government Bond

The Minister of Finance (“Minister”) has issued Regulation No. 134/PMK.08/2013 on Primary Dealers (“2013 Regulation”)

The main purposes of the 2013 Regulation is to redefine Primary Dealers’ rights and obligations to trade Government Bonds, also covering the evaluation of their performance and regulatory compliance.  

Primary Dealers are banks or securities companies appointed by the Minister to undertake certain duties for the trade of Government Bonds (Surat Utang Negara – “SUN”) and the SUN Benchmark series[1] in the primary or secondary markets in rupiah or foreign currencies (Art. 1 (3), 2013 Regulation).

Prior to the 2013 Regulation, the same matter was regulated under Ministerial Regulation No. 108/PMK.08/2007 on the Primary Dealer System (“2007 Regulation”), as amended by Ministerial Regulation No. 30.PMK.08/2008 (“Amendment to the 2007 Regulation”).

The 2013 Regulation is relevant to banks and securities companies that wish to or have been appointed as a Primary Dealer.

Requirements for Appointment as a Primary Dealer......