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Jakarta Post

Commercial papers come back to life after being dormant for decade

  • Riska Rahman

    The Jakarta Post

PREMIUM
Jakarta   /   Mon, September 30, 2019   /  11:44 am
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An employee monitors debt trading in Bank Rakyat Indonesia's dealing room. PT Sarana Multigriya Finansial (SMF) and PT Perusahaan Pengelolaan Aset (PPA) plan to issue commercial papers respectively worth Rp 200 billion and Rp 100 billion in October this year.(JP/File)

Two state-owned companies plan to issue commercial papers this year as Bank Indonesia (BI) is bringing the short-term debt paper back to life after being dormant for more than a decade. Secondary mortgage market firm PT Sarana Multigriya Finansial (SMF) and an asset management firm that specializes in managing risky assets, PT Perusahaan Pengelolaan Aset (PPA), announced on Sept. 25 that they would soon issue commercial papers to raise funds for their business expansions. SMF director Heliantopo said the company intended to issue a Rp 200-billion (US$14.06 million) commercial paper with a tenure of 12 months in the near future. “We’ve also received a rating of idA1+ from [credit rating agency] Pefindo,” he said during a focus group discussion in Jakarta. Meanwhile, PPA director Iman Rachman said the company was in the process of obtaining a credit rating on its...