BI Accelerating Commercial Securities as Alternative Source of National Economic Funding - Bank Sentral Republik Indonesia
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August 26, 2019


No. 21/38/DKom
Bank Indonesia is accelerating issuances and transactions of commercial securities (SBK) (previously commercial papers) as an alternative short-term nonbank source of funds. This was achieved through the signing of an administration agreement to settle SBK transactions between Bank Indonesia and the Indonesian Central Securities Depository (KSEI) today, Friday 17th May 2019, in Jakarta. The move is consistent with efforts to stimulate domestic demand. The agreement signals the operational preparedness of SBK market infrastructure for SBN issuances and transactions. The Deputy Governor of Bank Indonesia, Dody Budi Waluyo, stated his expectations that the various regulations and supporting infrastructure will enable SBK to play an important role as an alternative short-term funding solution for nonbank corporations and as an attractive money market instrument to the investors. 
SBK infrastructure includes regulations (Bank Indonesia Regulations and Board of Governors Regulations) previously issued concerning SBK instruments and the supporting institutions. Currently, a total of 3 arrangers, 2 rating agencies, 46 legal consultants, 84 public accountants, 5 notaries, 4 brokers, 15 custodians and the Indonesian Central Securities Depository (KSEI) as the central custodian are registered with Bank Indonesia. KSEI was approved by Bank Indonesia as the central custodian in order to improve governance of SBK issuances and transaction settlement, particularly in terms of recording, administrating and settling scripless SBK transactions. 
To provide greater understanding of the strategic role played by short-term nonbank financing and introduce the SBK instrument to the economic players, Bank Indonesia today held a seminar entitled “The Role of Commercial Securities as a Source of National Economic Funding”. Moving forward, Bank Indonesia will constantly strive to develop the SBK market by educating potential issuers through a socialisation program. Furthermore, Bank Indonesia will coordinate with the Indonesian Financial Services Authority (OJK) towards regulatory harmonisation, specifically regulations for financial services institutions that may utilise SBK as short-term funding or an investment vehicle. 
Jakarta, 17th May 2019
Onny Widjanarko
Executive Director



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