- As direct government bond (Surat Utang Negara – "SUN") transactions ("Transactions") are one of the sources of funding available to the government, the Minister of Finance ("Minister") has decided to expand the list of parties eligible to become government counterparts during the implementation of Transactions and has now harmonized relevant provisions that address these matters through the issuance of Regulation No. 165/PMK.08/2022 on Direct Government Bond Transactions ("Regulation 165/2022"). These matters were previously addressed under Regulation of the Minister No. 95/PMK.08/2014 ("Regulation 95/2014"), which has now been repealed and replaced.
- While no significant changes have been introduced in terms of the underlying purposes of Transactions, Regulation 165/2022 now allows the following parties to become government counterparts during the implementation of Transactions: 1) State-Owned Enterprises (Badan Usaha Milik Negara – "BUMN"); and 2) Public-Service Agencies (Badan Layanan Umum – “BLU”). The previous framework of Regulation 95/2014 only allowed Bank Indonesia (“BI”), the Deposit Insurance Corporation (Lembaga Penjamin Simpanan – "LPS") and securities companies appointed by the Minister ("Main Dealers") to become government counterparts in relation to Transactions.
- In terms of the above matters, Regulation 165/2022 now states that Transactions can be carried out by BI and LPS without the involvement of any Main Dealers. However, said Main Dealers may still become involved in Transactions that are carried out by BUMN or BLU.
- In terms of Transaction settlements, Regulation 165/2022 states that settlements should be completed within five working days of a given Transaction being initiated. In comparison, Regulation 95/2014 previously stated that Transaction settlements were required to be completed within two working days.
- Regulation 165/2022 has been in force since 14 November 2022.
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