Thursday May 21 2020

News Source: Global Exchanges

Focus: Fixed Income

Type: General

Country: Indonesia


On 20th May 2020, the Indonesia Stock Exchange (IDX) announced that in order to support funding through the Indonesian Capital Market, PT Indonesia Stock Exchange (B EI ) issued Rule Number IB concerning Listing of Debt Securities (IB Regulation) on May 20, 2020 and will be effective as of May 20, 2020 . The IB Regulation is an amendment to Rule Number IF.1 concerning Registration of Debt Securities issued on November 25, 2004.

Changes to these IB Regulations include:

  • Simplification of recording requirements, while still considering investor protection aspects. In addition, this regulation also regulates the listing of Debt Securities by companies with small and medium scale assets and combines the regulations for listing Municipal Bonds into this one regulation.
  • Changes to the provisions on the amount and maximum value of recording fees, time of payment and payment mechanism. In this regulation, the Exchange also provides incentive for the listing fees for Debt Securities issued by small and medium scale asset companies, Green Bonds , Regional Bonds, and for Listed Companies that register more than one type of Securities (Securities Effect Debt and / or Sukuk and Shares).

In addition to the issuance of this regulation SK, the BEI also sets out some of the following:

  • Additional incentives for the Recording of Municipal Bonds in the form of giving a 50% annual Recording fee discount for a period of 5 (five) years from the enactment of the Decree;
  • The provisions for listing Sukuk refer to the IB Regulation until the issuance of special regulations concerning the listing of Sukuk, except for the listing fees, where the Sukuk listing fee is lower than the listing fee for Debt Securities.
  • Provisions for the transition period for applying the recording fee for:
    • Debt Securities that have been recorded before the enactment of this regulation.
    • New Debt Securities issuances that have obtained the Preliminary Exchange Registration Agreement prior to the date of enactment of this regulation.
    • Continuous Public Offering (PUB) of the 2nd and subsequent Debt Securities that have submitted additional information to the Exchange at the latest before the date of enactment of this regulation,

Then continue to use the recording fee rates set out in IA5 Regulation, which is proportionally calculated until December 2020.

With this change in regulation, it is expected to expand access to funding in the capital market, encourage more debt issuers, provide more diverse investment options for investors, and further advance the Indonesian Capital Market in particular, and the Indonesian economy as a whole.

Click on the above link for further information.