BI Strengthen Applicable Criteria for Banks to Become Primary Dealers

In 2023, Bank Indonesia’s (“BI”) Board of Governors introduced Regulation No. 14 of 2023 (“Regulation 14/2023”) on Monetary Market Primary Dealers (“Primary Dealers”) which, at its core, set out various applicable requirements and mechanisms for the appointment of conventional commercial banks (Bank Umum Konvensional/BUK), sharia commercial banks (Bank Umum Syariah/BUS) and sharia business units (Unit Usaha Syariah/UUS) (collectively referred to as “Banks”) as Primary Dealers (“Appointment”) in order to support the organization of monetary operations through open-market operations (Operasi Pasar Terbuka – “OPT”).[1] In this regard, it should be noted that the various Appointment-related prerequisites that featured under Regulation 14/2023 were summarized in the following edition of Indonesian Legal Brief (“ILB”): “BI Stipulates Requirements for OPT Participants Looking to Become Primary Dealers”.