Prudential Principles in Managing Foreign Loans

Bank Indonesia (“BI”) has issued Regulation No. 16/20/PBI/2014 on Implementation of PrudentialPrinciples for the Management of Foreign Loans of Non-Bank Corporations’ (“Regulation”). The Regulation aims to prevent foreign loans from hampering the stabilization of the macroeconomy, [1] by providing guidelines for non-bank corporations(“Company”)to implement prudent principles in managing their foreign currencies loans with overseas parties (“Foreign Loans”).