The Minister of Finance has issued a regulation to ensure that all financial institutions, both bank and non-bank, are applying standardized 'know your customer' principles. The non-bank financial institutions noted in the Regulation are insurance, pension, and payment institutions and companies. This Regulation, No. 74/PMK.012/2006 is also a perfection of an earlier regulation, No.45/KMK.06/2003.

The Department of Finance (DoF) through the Head of the Capital Market Supervisory Agency and Financial Institutions (Bapepam- LK) has issued Insurance Businesses Regulation No. 1 on Guidelines for Handling Unsound Insurance and Reinsurance Companies. The Regulation is contained within Head of the Capital Market Supervisory Agency and Financial Institutions Decision No. Kep-12/BL/2006. The purpose of the Regulation is simple; to provide guidelines that will allow for consistent application of the rules and greater levels of transparency and legal certainty throughout the insurance industry.

The Capital Market Supervisory Agency (Bapepam) has 3 new rules; V.B.2 (Head of Bapepam and Financial Institutions Decision Letter No. Kep-09/BL/2006), V.B.3 (Head of Bapepam and Financial Institutions Decision Letter No. Kep-10/BL/2006), and V.B.4 (Head of Bapepam and Financial Institutions Decision Letter No. Kep-11/BL/2006) which deal with licensing of representative mutual funds selling agents, registration of mutual funds selling agents, and conduct of mutual funds selling agents, respectively. Each of these rules has been issued with a view to implementing the Government's commitment to the Financial Sector Policy Package that was issued in July 2006.

The Directors of the Surabaya Stock Exchange have issued Rule No. I.G on the listing of asset-backed shares on the Surabaya Stock Exchange (BES). This Rule is an Attachment to Decision of the Directors of the Surabaya Stock Exchange No: SK-006/LGL/BES/VII/2006. The Rule covers all matters related to procedures for obtaining agreement to list, listing and de-listing, listing fees, reporting obligations, and sanctions. The Rule includes 5 standard forms, a copy of each of which is attached to the Rule.

Share Listing Rule I.F.2 is the Attachment to Decision No: SKS005/LGL/BES/VII/2006 issued by the Directors of PT Bursa Efek Surabaya (Surabaya Stock Exchange / BES) and regulates the listing of new State Debenture Bonds (Surat Utang Negara / SUN) or the 'reopening' of previously listed SUN on the BES. A reopening is simply any addition to the nominal value of the SUN of the same series that have already been issued and listed previously on the BES.

The misuse and abuse of client funds in the trading of futures and commodities has spurred the Commodities Futures Exchange Supervisory Board (Bappebti) into action. The issue of the Head of Bappebti Regulation No. 59/BAPPEBTI/Per/7/2006 is designed to ensure that the community in general, and futures trading clients in particular, are protected from brokers inclined to use multiple client accounts to trade in the futures market.

The Indonesian Government has always placed great emphasize on empowering small businesses, which entails their access to financing. To date, financing for small businesses are provided through several formal banking arrangements, namely various types of financing through state-owned banks (e.g. Bank Rakyat Indonesia), or through community credit bank (Bank Perkreditan Rakyat or ?BPR?). These are still deemed insufficient and since 2002 the Minister for Cooperatives, Small and Medium Enterprises (?Minister?) has been pushing for a bill on micro finance institution (?Bill?).

The Indonesian Capital Market Supervisory Agency (Bapepam) has released several Draft Regulations to amend Rule No. VIII.A.1 and Rule No. VIII.A.2 regarding the Registration of Accountants Undertaking Activities in the Capital Market and the Independence of Accountants Providing Audit Services in the Capital Market, respectively. The Drafts are available from Bapepam's website (<http://www.bapepam.go.id/profil/news/2006_maret/public_opini-VIII.A.1n2.htm>) either in pdf or word formats with all comments and opinions able to be submitted electronically to [email protected] <http://www.bapepam.go.id/mail/src/compose.php?send_to=aat%40bap epam.go.id>.

The Indonesian Capital Market Supervisory Agency (Bapepam) has issued 4 Draft Regulations - 1 Amendment and 3 new Rules for public comment. It is expected that the public, primarily those individuals and organizations with an interest in capital market issues, will provide input.

The Government is concerned about the financial stability of insurance and reinsurance companies therefore this amended Regulation, No. 135/PMK.05/2005, has been drafted with a view to ensuring the financial soundness of companies operating in the insurance sector.