Mechanism for SVBI and SUVBI Transactions During OPT Introduced

In an effort to maintain the overall stability of the rupiah exchange rate, Bank Indonesia (“BI”) recently incorporated BI foreign currency securities (sekuritas valuta asing BI – “SVBI”) and BI foreign currency sukuk (sukuk valuta asing BI – “SUVBI”) into its open-market operations (operasi pasar terbuka – “OPT”) instruments through the issuance of Regulation of the BI Board of Governors No. 16 of 2023, which is the third amendment (“Third Amendment”) to Regulation No. 22/23/PADG/2020 (“Regulation 22/2020”).[1] The Third Amendment has been in force since 17 November 2023.[2]