Overview

Repurchase agreement transactions, commonly known as repo transactions, are common transactions within the capital-market sector and represent a funding alternative that is currently known and practiced by businesses on a global scale, including in Indonesia. Moreover, this kind of transaction has been growing in terms of value, frequency and volumes and is thus playing an increasingly important role in facilitating market liquidity. Against this background, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) decided to issue Regulation No. 9/POJK.04/2015 on Guidelines for Repurchase Agreement Transactions Undertaken by Financial Services Institutions (“Regulation 9/2015”) in order to ensure the effective, fair and efficient implementation of repo transactions across Indonesia.[1]