Jakarta Post

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.

Jakarta Post
The Jakarta Post
Video Weather icon 26°C
DKI Jakarta, Indonesia
26°C Light Rain

Rain until tomorrow morning, starting again tomorrow afternoon.

  • Thu

    26℃ - 31℃

  • Fri

    26℃ - 32℃

  • Sat

    27℃ - 32℃

  • Sun

    26℃ - 30℃

OJK to finish revision of rules on municipal bonds this year

  • Winny Tang

    JP

Bogor | Sun, September 10, 2017 | 11:07 pm
OJK to finish revision of rules on municipal bonds this year Employee are working at the Financial Services Authority's (OJK) integrated financial consumer service center at Bank Indonesia (BI) building in Jakarta, recently. (Antara/Fanny Octavianus)

The Financial Services Authority (OJK) hopes to finish the revision of a regulation on municipal bonds by the end of the year to increase the attractiveness of debt papers issued by regional administrations.

The bonds are expected to help finance infrastructure projects in the regions.

Some regions, such as Jakarta, West Java and East Kalimantan, had expressed their interest in rolling out such bonds, said the OJK’s deputy director for services company assessment, Muhammad Maulana.

“At present, the OJK is revising the regulation in coordination with the Finance Ministry,” Maulana said on Saturday, adding that lengthy and complicated procedures had hampered efforts by local administrations to issue such bonds.

One of the procedures is that the administrations must gain approval from the Finance Ministry, the Regional Legislative Council (DPRD) as well as the Home Ministry. Consequently, despite the benefits, none of them have launched such debt papers.

In addition to the complex process, unlike with government bonds, the central government does not provide guarantees for municipal bonds in case of default. (lnd)

Topics :

Join the discussions