JAKARTA - Bank Indonesia accelerates the issuance and transaction of Commercial Securities / SBK instruments (formerly called Commercial Paper) as a source of non-banking short-term funding. This was done through the signing of the SBK transaction administration and settlement agreement between BI and PT. KSEI on Friday, May 17, 2019 at Thamrin Building, Jakarta.
This effort is also consistent in driving domestic demand. This signing marks that the SBK market infrastructure is complete and ready to be operated to serve SBK issuance and transactions. Bank Indonesia Deputy Governor, Dody Budi Waluyo hopes that with the provision of various provisions and supporting infrastructure, SBK can play an important role as one of the short-term funding alternatives for non-bank corporations and as an attractive money market instrument for investors.
The completeness of SBK infrastructure includes regulations (Bank Indonesia Regulations and Board of Governors' Member Regulations) that have been issued including the regulation of SBK and market supporting institutions. Currently registered at Bank Indonesia are 3 management / arranger, 2 rating agencies, 46 legal consultants, 84 public accountants, 5 notaries, 4 brokers, 15 custodians, and PT. KSEI as the Central Custodian. The appointment of KSEI as a depository and settlement of SBK transactions by Bank Indonesia is one of the efforts to improve governance in issuance and transactions, especially related to the recording, administration and completion of SBK transactions conducted in scripless (scripless).
Furthermore, to provide an understanding of the strategic role of non-banking short-term financing and to introduce commercial securities instruments to economic actors, last week BI held a seminar with the theme "The Role of Commercial Securities as a Source of National Economic Funding". Going forward, Bank Indonesia will continue to strive to develop the Commercial Securities market through education to potential issuers and outreach programs. Bank Indonesia will coordinate with OJK to harmonize regulations, especially regulations that regulate financial service institutions that can use SBK as an alternative to short-term funding as well as investment. (LM)