Ada Pertanyaan? Hubungi Kami 
2026 Hak Cipta Milik Hukumonline.com
Produk Pilihan
Ada Pertanyaan? Hubungi Kami Marcell Sihombing, ANT
OJK's Office. Photo by: RES.
The Financial Services Authority (OJK) is currently finalizing a regulation on issuance of “municipal bonds” – a financial instrument that allows regional governments to finance infrastructure projects in their region.
“The regulation is currently being finalized by the OJK,” asserted by Firdaus Djaelani, OJK’s Chief Executive of Non-Bank Financial Industry Supervision (IKNB), on Monday, May 2nd 2016 (Jakarta).
According to Mr. Djaelani, several regional governments that have ample of regional revenue (pendapatan asli daerah - PAD) will be considered to issue municipal bonds. He pointed out the West Java regional government as an example, which had already expressed will on financing their new Majalenka airport construction by issuing municipal bonds.
Aside from OJK granting permission to issue municipal bonds, in turn, regional governments must also be able to pay the debts generated from issuing the bonds. This situation imposes OJK on having to plan tighter requirements for regional governments intending to issue municipal bonds.
“It wouldn’t be funny if a regional government went bankrupt because they couldn’t afford to pay their debts [due to municipal bonds issuance]. Thus, granting such permission must be tight. Such permission can only be granted after knowing regional governments’ ability to issue municipal bonds and their region’s revenue potential,” asserted Mr. Djaelani.
Mr. Djaelani hoped that OJK can establish or appoint a specific service office under the regional government in question that will serve to organize and manage municipal bonds. Such role will be a delegation of authority of the Directorate General of Risk and Debt Management at the Ministry of Finance.
Currently, the OJK is also deliberating suggestions to categorize corporate bonds issued by state-owned enterprises engaged in the infrastructure business, as government bonds.
“Right now, we continue to deliberate the idea whenever that party [state-owned enterprise engaged in infrastructure business] is ready. Should the time come, we are looking into specifying the amount of issued corporate bonds,” asserted Mr. Djaelani.
Personally speaking, Mr. Djaelani lauded such suggestion, because he thought the idea of including corporate bonds as a state commercial paper (SBN – Surat Berharga Negara), conforms with government’s campaign to support infrastructure financing. Mr. Djaelani firmly believed that the suggestion would contribute positively for the construction of infrastructures in regions across Indonesia.
So, whenever a state-owned enterprise feels ready to issue corporate bonds, the OJK needs only to review their Circular Letter governing insurance and pension fund companies. This Circular Letter mandates that non-bank financial institutions must satisfy payment of government bonds at 20 percent of their issued bonds for the 2016 period, which will increase to 30 percent in 2017.
As regards to concerns about possible competition in the sales of government bonds (surat utang negara - SUN) and corporate bonds (issued by state-owned enterprise), Mr. Djaelani viewed that both financial instruments must be arranged in a way that it does not compete with each other. After all, competitions would end up in the classic struggle of increasing interest rate.
“The regulation is currently being finalized by the OJK,” asserted by Firdaus Djaelani, OJK’s Chief Executive of Non-Bank Financial Industry Supervision (IKNB), on Monday, May 2nd 2016 (Jakarta).
According to Mr. Djaelani, several regional governments that have ample of regional revenue (pendapatan asli daerah - PAD) will be considered to issue municipal bonds. He pointed out the West Java regional government as an example, which had already expressed will on financing their new Majalenka airport construction by issuing municipal bonds.
Aside from OJK granting permission to issue municipal bonds, in turn, regional governments must also be able to pay the debts generated from issuing the bonds. This situation imposes OJK on having to plan tighter requirements for regional governments intending to issue municipal bonds.
“It wouldn’t be funny if a regional government went bankrupt because they couldn’t afford to pay their debts [due to municipal bonds issuance]. Thus, granting such permission must be tight. Such permission can only be granted after knowing regional governments’ ability to issue municipal bonds and their region’s revenue potential,” asserted Mr. Djaelani.
Mr. Djaelani hoped that OJK can establish or appoint a specific service office under the regional government in question that will serve to organize and manage municipal bonds. Such role will be a delegation of authority of the Directorate General of Risk and Debt Management at the Ministry of Finance.
Currently, the OJK is also deliberating suggestions to categorize corporate bonds issued by state-owned enterprises engaged in the infrastructure business, as government bonds.
“Right now, we continue to deliberate the idea whenever that party [state-owned enterprise engaged in infrastructure business] is ready. Should the time come, we are looking into specifying the amount of issued corporate bonds,” asserted Mr. Djaelani.
Personally speaking, Mr. Djaelani lauded such suggestion, because he thought the idea of including corporate bonds as a state commercial paper (SBN – Surat Berharga Negara), conforms with government’s campaign to support infrastructure financing. Mr. Djaelani firmly believed that the suggestion would contribute positively for the construction of infrastructures in regions across Indonesia.
So, whenever a state-owned enterprise feels ready to issue corporate bonds, the OJK needs only to review their Circular Letter governing insurance and pension fund companies. This Circular Letter mandates that non-bank financial institutions must satisfy payment of government bonds at 20 percent of their issued bonds for the 2016 period, which will increase to 30 percent in 2017.
As regards to concerns about possible competition in the sales of government bonds (surat utang negara - SUN) and corporate bonds (issued by state-owned enterprise), Mr. Djaelani viewed that both financial instruments must be arranged in a way that it does not compete with each other. After all, competitions would end up in the classic struggle of increasing interest rate.
(ds)
Marcell Sihombing, ANT
OJK's Office. Photo by: RES.
The Financial Services Authority (OJK) is currently finalizing a regulation on issuance of “municipal bonds” – a financial instrument that allows regional governments to finance infrastructure projects in their region.
“The regulation is currently being finalized by the OJK,” asserted by Firdaus Djaelani, OJK’s Chief Executive of Non-Bank Financial Industry Supervision (IKNB), on Monday, May 2nd 2016 (Jakarta).
According to Mr. Djaelani, several regional governments that have ample of regional revenue (pendapatan asli daerah - PAD) will be considered to issue municipal bonds. He pointed out the West Java regional government as an example, which had already expressed will on financing their new Majalenka airport construction by issuing municipal bonds.
Aside from OJK granting permission to issue municipal bonds, in turn, regional governments must also be able to pay the debts generated from issuing the bonds. This situation imposes OJK on having to plan tighter requirements for regional governments intending to issue municipal bonds.
“It wouldn’t be funny if a regional government went bankrupt because they couldn’t afford to pay their debts [due to municipal bonds issuance]. Thus, granting such permission must be tight. Such permission can only be granted after knowing regional governments’ ability to issue municipal bonds and their region’s revenue potential,” asserted Mr. Djaelani.
Mr. Djaelani hoped that OJK can establish or appoint a specific service office under the regional government in question that will serve to organize and manage municipal bonds. Such role will be a delegation of authority of the Directorate General of Risk and Debt Management at the Ministry of Finance.
Currently, the OJK is also deliberating suggestions to categorize corporate bonds issued by state-owned enterprises engaged in the infrastructure business, as government bonds.
“Right now, we continue to deliberate the idea whenever that party [state-owned enterprise engaged in infrastructure business] is ready. Should the time come, we are looking into specifying the amount of issued corporate bonds,” asserted Mr. Djaelani.
Personally speaking, Mr. Djaelani lauded such suggestion, because he thought the idea of including corporate bonds as a state commercial paper (SBN – Surat Berharga Negara), conforms with government’s campaign to support infrastructure financing. Mr. Djaelani firmly believed that the suggestion would contribute positively for the construction of infrastructures in regions across Indonesia.
So, whenever a state-owned enterprise feels ready to issue corporate bonds, the OJK needs only to review their Circular Letter governing insurance and pension fund companies. This Circular Letter mandates that non-bank financial institutions must satisfy payment of government bonds at 20 percent of their issued bonds for the 2016 period, which will increase to 30 percent in 2017.
As regards to concerns about possible competition in the sales of government bonds (surat utang negara - SUN) and corporate bonds (issued by state-owned enterprise), Mr. Djaelani viewed that both financial instruments must be arranged in a way that it does not compete with each other. After all, competitions would end up in the classic struggle of increasing interest rate.
“The regulation is currently being finalized by the OJK,” asserted by Firdaus Djaelani, OJK’s Chief Executive of Non-Bank Financial Industry Supervision (IKNB), on Monday, May 2nd 2016 (Jakarta).
According to Mr. Djaelani, several regional governments that have ample of regional revenue (pendapatan asli daerah - PAD) will be considered to issue municipal bonds. He pointed out the West Java regional government as an example, which had already expressed will on financing their new Majalenka airport construction by issuing municipal bonds.
Aside from OJK granting permission to issue municipal bonds, in turn, regional governments must also be able to pay the debts generated from issuing the bonds. This situation imposes OJK on having to plan tighter requirements for regional governments intending to issue municipal bonds.
“It wouldn’t be funny if a regional government went bankrupt because they couldn’t afford to pay their debts [due to municipal bonds issuance]. Thus, granting such permission must be tight. Such permission can only be granted after knowing regional governments’ ability to issue municipal bonds and their region’s revenue potential,” asserted Mr. Djaelani.
Mr. Djaelani hoped that OJK can establish or appoint a specific service office under the regional government in question that will serve to organize and manage municipal bonds. Such role will be a delegation of authority of the Directorate General of Risk and Debt Management at the Ministry of Finance.
Currently, the OJK is also deliberating suggestions to categorize corporate bonds issued by state-owned enterprises engaged in the infrastructure business, as government bonds.
“Right now, we continue to deliberate the idea whenever that party [state-owned enterprise engaged in infrastructure business] is ready. Should the time come, we are looking into specifying the amount of issued corporate bonds,” asserted Mr. Djaelani.
Personally speaking, Mr. Djaelani lauded such suggestion, because he thought the idea of including corporate bonds as a state commercial paper (SBN – Surat Berharga Negara), conforms with government’s campaign to support infrastructure financing. Mr. Djaelani firmly believed that the suggestion would contribute positively for the construction of infrastructures in regions across Indonesia.
So, whenever a state-owned enterprise feels ready to issue corporate bonds, the OJK needs only to review their Circular Letter governing insurance and pension fund companies. This Circular Letter mandates that non-bank financial institutions must satisfy payment of government bonds at 20 percent of their issued bonds for the 2016 period, which will increase to 30 percent in 2017.
As regards to concerns about possible competition in the sales of government bonds (surat utang negara - SUN) and corporate bonds (issued by state-owned enterprise), Mr. Djaelani viewed that both financial instruments must be arranged in a way that it does not compete with each other. After all, competitions would end up in the classic struggle of increasing interest rate.
(ds)