Ministry of Finance Amends Regulations on Retail SUN and Foreign Exchange Sales

The Ministry of Finance (“Kemenkeu”) is finalizing a draft Regulation of the Minister of Finance on the Sale of Government Securities (“SUN”) through Order Collection in the Domestic Primary Market (“Draft Regulation”). This policy will simplify and update the regulations on the sale of retail SUN and foreign exchange SUN (“Valas”) in the domestic primary market, while repealing Regulation of the Minister of Finance (“Regulation”) No. 128/PMK.08/2012 on the Sale of SUN in Foreign Exchange in the Domestic Primary Market through Bookbuilding (“Regulation 128/2012”) and Regulation No. 27/PMK.08/2020 on the Sale of Retail SUN in the Domestic Primary Market (“Regulation 27/2020”)

“The relevant Draft Regulation is still under discussion,” said Wawan Sugiyarto, Head of the Communication and Information Services Division of the Directorate-General of Financing and Risk Management (DJPPR) of Kemenkeu, to Hukumonline.

This Draft Regulation will also regulate the determination and evaluation of Distribution Partners, including the selection process which involves direct purchase orders through an electronic system via a rigorous system testing stage.

Other matters to be regulated include provisions on the rights and obligations of Distribution Partners, as well as the obligation to assist Investors in creating a Single Investor Identification (“SID”) number and securities accounts.