Provisions on Rupiah Interest Derivative Transactions in the Form of Interest Rate Swap Transactions Further Regulated

With the ultimate goal of improving liquidity and efficiency across the financial market, Bank Indonesia (“BI”) has issued Regulation of the Bank Indonesia Board of Governors No. 21/13/PADG/2019 on Rupiah Interest Rate Derivative Transactions in the Form of Interest Rate Swap Transactions (“Regulation 13/2019”).[1]

In general, Regulation 13/2019 elaborates upon various provisions which were originally addressed under Regulation of BI No. 20/13/2018 on Rupiah Interest Rate Derivative Transactions,[2] specifically in relation to interest rate swap transactions (“IRS Transactions”). Due to the broad scope of Regulation 13/2019, this edition of Indonesian Legal Brief (ILB) will exclude any analysis of the following topics from its discussion: