TEMPO.CO, Jakarta - Bank Indonesia (BI) issued a Regulation No. 19/2017 on Deposit Certificate Transactions in the financial market that will take effect on July 1, 2017, according to BI head of financial market development Nanang Hendarsyah.
"We will provide a chance for market movers to adjust with the regulation. BI is also preparing the license mechanism. This is in line with BI Regulation on commercial debt papers that will be issued in May 2017," Nanang said in Jakarta on Wednesday, March 23, 2017.
Nanang said that the new regulation regulates criteria of deposit certificates traded in the financial market, license for issuers and financial market institutions, deposit certificate transactions, and reporting and supervision. According to Nanang, deposit certificates that can be traded are non-paper certificates.
"Interests are set between five to eight percent. The interest could be high at the beginning. However, more transactions will make the price lower," Nanang explained.
The regulation also sets a minimum value of Rp 10 billion (US$750,000) for the deposit certificates to be traded.
"We want deposit certificates to be traded in the financial market, instead of in retails. It must be wholesale. Small transactions won't be efficient," Nanang added.
Additionally, Nanang said that deposit certificates to be traded must mature between a month and 36 months.
"The certificates must be registered at BI or administrative institutions appointed by BI," Nanang explained.
ANGELINA ANJAR SAWITRI
