Ministry of Finance of Republic of Indonesia : MoF Issued Regulatory Changes on Primary Dealer

Jakarta, 12/01/2016 MoF - Ministry of Finance issued Minister of Finance Regulation (PMK) Number 234/PMK.08/2016 regarding the second amendment of PMK Number 134/PMK.08/2013 regarding primary dealer following the evaluation of implementation of Primary Dealer. It aims to encourage the effectiveness and good governance of Primary Dealer.

Some of the changes are first, the change of Article 5 which states the Minister of Finance c.q. Director General of Financing and Risk Management has an authority to accept or reject the application of the Bank or the Securities Company of becoming Primary Dealers by considering the track record of the Bank or Securities Company, including the working experience with the Ministry of Finance, and / or the effective application of Primary Dealer system.

Secondly, Article 5A, stating that if the Primary Dealer does merger, acquisition, consolidation, integration and/or another form of restructuring/reorganization, the Primary Dealer shall give notification to the Minister of Finance to be reappointed as a Primary Dealer in accordance to the requirements.

Third, Article 7A Primary Dealer confirms the obligation to maintain a partnership with the Government based on the principle of professionalism, integrity, avoidance of conflicts of interest and attention to the interests of the country. 'Exceptions is applied to Treasury Bills (SPN) 3-months in the calculation of liabilities Primary Dealer activity in the auction securities of the primary market set forth in Section 7B,' added the Head of Communications and Information Services, Ministry of Finance, on Wednesday (11/01).

With the improvement made, the role of Primary Dealer in the development of Government Bond (SUN) market is expected to be more effective and escalated, including the liquidity, efficiency and transparency in secondary market of SUN. (as/rsa)

Further information: Principal Changes in the Minister of Finance Regulation regarding the Primary Dealer