BI Tightens Administrative Sanctions for Non-Compliant Primary Dealers

In 2024, Bank Indonesia’s (“BI”) Board of Governors introduced a regulatory framework for implementation by primary dealers through the issuance of Regulation No. 2 of 2024 (“Regulation 2/2024”). At its core, Regulation 2/2024 features various criteria, requirements and procedures that apply to conventional and sharia commercial banks, as well as sharia business units (collectively referred to as “Banks”) that wish to be appointed as primary dealers in the Money Market and Foreign Exchange Market (Pasar Uang dan Pasar Valuta Asing - “PUVA”) (“Primary Dealers”).[1]