RPP on SPVs and Trustees Will Affirm the Principle of Bankruptcy Remoteness

The Ministry of Finance is currently finalizing the Draft Regulation of the Government (“RPP”) on Special Purpose Vehicles (“SPVs”) and Trust Fund Management Entity (“Trustees”). The RPP will affirm the principle of bankruptcy remoteness, under which assets administered by a Trustee are legally segregated from the bankruptcy risk of the asset owner (“Settlor”), thereby providing stronger legal protection for the beneficiary (“Beneficiary”).

“The drafting of RPP on SPVs and Trustees is currently underway, with efforts focused on further refining its substantive provisions,” said Herman Saheruddin, Acting Director General of Financial Sector Stability and Development (Direktur Jenderal Stabilitas dan Pengembangan Sektor Keuangan - “DJSPSK”) at the Ministry of Finance.

The introduction of this regulatory framework is expected to benefit not only the private sector but also strategic state institutions, including PT Sarana Multi Infrastruktur (“SMI”), Danantara, and the Indonesia Investment Authority (“INA”), in managing philanthropic funds, estates, and other investment structures. “More detailed implementing provisions will be set out in regulations issued by the relevant authorities, such as Regulation of the Financial Services Authority (OJK),” he added.