TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsIndonesia to push capital market instruments for infrastructure financing
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Financial Services Authority (OJK) chairman Wimboh Santoso shakes hands with Finance Minister Sri Mulyani at the Supreme Court after he was sworn in as OJK chairman on July 20. (JP/Dhoni Setiawan)
T
he government is considering ways to combine capital market instruments with traditional financing like bank loans and corporate bonds to fund infrastructure development.
"We will create a lot of instruments to push capital market financing," Financial Services Authority (OJK) chairman Wimboh Santoso said after a meeting with President Joko “Jokowi” Widodo at the State Palace in Jakarta on Monday.
The options considered included accounts receivable (AR) securitization and project-based mutual funds, he added.
Wimboh noted that Indonesia had been successful in issuing asset-backed securities, as seen recently in the issuance of such securities by state-owned toll road operator PT Jasa Marga.
He said greater variety in financing instruments would give corporations more options to get fresh cash.
The OJK would develop the hedging market, as most infrastructure projects in Indonesia generated revenue in rupiah but foreign investors wanted payment in dollars, he said, adding that not many long-term hedging instruments were currently available in the domestic market.
"Now people are trading hedging instruments under over-the-counter mechanisms, not in the regulated market. There will be a specialized bourse to sell hedging instruments," Wimboh said. (bbn)
