TEMPO.CO, Jakarta - Bank Indonesia (BI) has amended the regulation on the issuance of commercial paper (CP) by non-bank financial institutions. The changes are stipulated in the PBI No19/9/PBI/ 2017 on the issuance and transaction of commercial securities in the money market and will take effect on January 2018.
"These commercial papers are an alternative to short-term financing in financial markets, in addition to loans provided by banks," BI director for market development Nanang Hendarsah said in Jakarta, Monday.
According to Nanang, the rule is needed to increase investors' confidence and accelerate the process of deepening the money market by adding instrument varieties.
He added that the increasing number of debt instruments in financial markets will improve competition in financing distribution, such as bank loans.
In the past, Nanang said, securities issuances were done by printing scripts; making it prone to counterfeiting.
"Today, commercial paper issuance will be scriptless," he said.
The minimum issuance value of commercial paper (CP) is Rp10 billion or US$1 million and its equivalent in other foreign currencies. The available tenors are one month, three months, six months, nine months or 13 months.
The minimum purchase value is Rp500 million or US$50,000 and its equivalent in other foreign currencies.