Bank Indonesia Improves Money Market Regulations, When Will They Apply?

TEMPO.CO, Jakarta – Bank Indonesia or BI has refined money market regulations through the issuance of Bank Indonesia Regulation (PBI) Number 23/10/PBI/2021 concerning Money Markets to create a money market that is liquid, efficient, transparent, and with integrity.

“This provision is effective on December 31, 2021,” said Head of the BI Communications Department Erwin Haryono in an official statement received in Jakarta, Tuesday, August 10, 2021.

The improvement of this BI Regulation will support the development and deepening of the financial market as a whole and at the same time support the availability of alternative sources of financing for the national economy.

The issuance of this provision is a form of implementation of the Money Market Development Blueprint (BPPU) 2025, one of the visions of which is to realize a regulatory framework that is agile, industry-friendly, innovative, and complies with international rules.

The area of ‚Äč‚Äčimprovement covers the scope of regulation, which initially only regulates and covers the money market rupiah, to regulate and oversee the rupiah money market, foreign exchange money market, and foreign exchange market.

The scope of money market development regulated by Bank Indonesia includes regulation, licensing, supervision and the imposition of sanctions on the money market which are carried out comprehensively or end-to-end.

It is intended both for products, market participants or of participants, prices or pricing and/or market infrastructure finance so that the money market becomes organized and functioning well or well-functioning money market.

When this BI Regulation comes into force, several other BI Regulations are revoked and declared invalid, namely Bank Indonesia Regulation Number 7/31/PBI/2005 concerning Derivative Transactions.

Then Bank Indonesia Regulation Number 18/11/PBI/2016 concerning Money Market and Bank Indonesia Regulation Number 19/5/PBI/2017 concerning Treasury Certification and Application of Market Code of Ethics. Meanwhile, all implementation provisions of the three BI Rules in points a, b, and c are stated to remain in force as long as they do not conflict with the provisions of these BI Rules.