New Regulation on Bank Indonesia Securities in Foreign Currencies

Bank Indonesia (“BI”)has just issued Regulation No. 17/17/PBI/2015 on Bank Indonesia Securities in Foreign Currencies (“2015 Regulation”). In a bid to maintain foreign currency reserves and stabilize the rupiah exchange rate, the 2015 Regulation sets out procedures for the issuance and sale of BI securities to banks and other parties.[1]
 
The 2015 Regulation is of relevance to banks and other parties wishing to engage in the trading of BI securities.
 
BI Securities
Bank Indonesia Securities in Foreign Currencies (Surat Berharga Bank Indonesia – “SBBI”) are commercial papers issued by BI as short-term promissory notes.[2] The characteristics of SBBI are as follows:[3]