BI Strengthen Applicable Criteria for Banks to Become Primary Dealers

In 2023, Bank Indonesia’s (“ BI ”) Board of Governors introduced Regulation No. 14 of 2023 (“ Regulation 14/2023 ”) on Monetary Market Primary Dealers (“ Primary Dealers ”) which, at its core, set out various applicable requirements and mechanisms for the appointment of conventional commercial banks (Bank Umum Konvensional/BUK), sharia commercial banks (Bank Umum Syariah/BUS) and sharia business units (Unit Usaha Syariah/UUS) (collectively referred to as “ Banks ”) as Primary Dealers (“ Appointment ”) in order to support the organization of monetary operations through open-market operations (Operasi Pasar Terbuka– “ OPT ”). [1] In this regard, it should be noted that the various Appointment-related prerequisites that featured under Regulation 14/2023 were summarized in the following edition of Indonesian Legal Brief (“ ILB ”): “ BI Stipulates Requirements for OPT Participants Looking to Become Primary Dealers ”.