PLJP Implementing Regulation for Conventional Commercial Banks Updated: BI-FRN and Other High-Rated Securities Now Recognized as Collateral

In 2023, Bank Indonesia (“ BI ”)’s Board of Governors issued Regulation No. 21 of 2023 (“ Regulation 21/2023 ”), which has been serving as an Implementing Regulation on Short-Term Liquidity Loans (Pinjaman Likuiditas Jangka Pendek– “ PLJP ”) for Conventional Commercial Banks (Bank Umum Konvensional– “ BUK ”) that face liquidity difficulties. Regulation 21/2023 details the terms, conditions, mechanisms and collateral requirements for the securing and repayment of PLJP, including a prioritized list of acceptable collateral in the form of securities, as well as credit, financing and fixed assets.