New BI Monetary Operations Framework Introduced: Government-Supported LJK Now Eligible to Become Issuers, Securities to Be Priced at Market Value

Back in 2020, Bank Indonesia (“BI”)’s Board of Governors issued Regulation No. 22/25/PADG/2020 on Criteria and Requirements for Securities During Monetary Operations (Operasi Moneter – “OM”), which was subsequently amended by Regulation No. 7 of 2023 (collectively referred to as “Regulation 25/2020”). As its title suggests, Regulation 25/2020 introduced a list of criteria and requirements for various types of securities that can be used during OM transactions, such as Repurchase Agreements (“Repo”) and Reverse Repo transactions.