A quick review of history reveals that at the time of the financial meltdown in late 1997 and 1998 that PT Indah Kiat Pulp & Paper (IKPP) was Indonesia's biggest defaulting debtor with some USD 14 billion in debts. And it is within this context one must look at the recent decisions handeddown which provide IKPP with a windfall that may ultimately top USD 1 billion.

The Center for Reporting and Analysis of Financial Transactions (PPATK) will cease to be considered a paper tiger without teeth if the Bill on Money Laundering is passed in its current form. The expanded powers include the authority to freeze suspect accounts and transactions, a right to conduct investigations, and a right to tap communications. This is a significant, perhaps even an exponential increase in powers compared to what the PPATK enjoys now.

Bank Indonesia (BI) policy relating to Community Credit Banks (BPR / BBank Perkreditan Rakyat) is one of expansion of existing banks rather than simply permitting new start-up ventures. A survey of BPR by BI indicated that of 1,926 BPR throughout Indonesia 1,503 were in either Java or Bali. The survey also indicated that there were only 104 BPR providing Syariah financial services in this sector. Therefore, the purpose of this BI Regulation, No. 8/26/PBI/2006 is to encourage the opening of greater numbers of branch offices for existing BPR and strengthening the economic role of the BPR sector.

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 Capital Market Supervisory Agency (Bapepam) has issued two new rules, X.E.1 and X.M.3, which are attached to Regulation Numbers Kep-06/BL/2006 and Kep-07/BL/2006 respectively.

The management of matters relating to accountants and auditors has been delegated by the Minister of Finance (MoF) to the Secretary General of the Department of Finance based on the provisions contained in Ministerial Decision No. 607/KMK.01/2005. The purpose of the Regulation is to ensure greater administrative order and certainty.

In an effort to create a culture of good corporate governance and greater levels of transparency and accountability the Capital Market Supervisory Agency (Bapepam) has issued a Draft of a Regulation that is intended to govern the reporting of bond transactions.

Joint Decision between the Coordinating Minister of Economic AAffairs, the Governor of Bank Indonesia, the Minister of Finance, and the State Minister of State-Owned Enterprises have issued a policy package that complements 2 earlier policy package initiatives relating to investment and infrastructure development. The ultimate goal of the 3 policy packages is to speed up economic growth and to ensure that Indonesia increases its levels of global competitiveness.

The Government has recognized the need for the provision of low income housing but at the same time realizes that there are inherent difficulties faced by low income earners in being able to provide sufficient collateral to secure loans. Therefore, the Government has stepped in to fill the breach. The State Minister for Public Housing has issued 2 Regulations; 06/Permen/M/2006 and 07/Permen/M/2006.

The sale of State Bond Certificates (SUN) may be sold either at auction or through an accredited selling agent without the use of an auction. The Government is anticipating that Retail Bonds are an emerging and growing basis for investors to acquire SUN and therefore this part of the market needs to be further and explicitly regulated.