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Jakarta Post

Testing OJK’s consistency

  • Haryo Kuncoro
    Haryo Kuncoro

    Research director at the Socio-Economic & Educational Business Institute (SEEBI)

Jakarta   /   Wed, May 8, 2019   /  11:23 am
Testing OJK’s consistency The Financial Services Authority (OJK) logo is seen on the frontispiece at its headquarters in Jakarta. (kontan.co.id/File)

The Financial Services Authority (OJK) is currently preparing a new policy regarding medium-term notes (MTN). With the new rule, which is to be implemented in the third quarter of this year, the prospective MTN issuers, like bond issuers, are obliged to report their corporate actions to the OJK. So far, corporations can issue MTNs without having to report to the OJK. The amount of MTN issuance over the past year, for example, reached Rp 27.29 trillion (US$1.88 billion). This trend continues into 2019. The amount of MTN issuance by the end of January 2019 reached Rp 1.90 trillion, up from Rp 1.79 trillion in the same period last year. The rise of MTN is triggered by the need of corporations for immediate funds. Options fall on MTN because the issuance process is simple. Therefore, the majority of MTN issuances take the form of private placement — instead of public offerin...



Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.