INDONESIA: IDX to Expand Government Bonds Market with Renewal of Cooperation Agreement with ADX

Wednesday February 18 2015

Indonesian Stock Exchange (IDX) has announced the signing of a cooperation agreement with Directorate General of Finance and Risk Management (DJPPR). The Fourth Cooperation Agreement Addendum intends to enforce the commitment of both parties. This cooperation agreement is a continuation of the agreement signed by both parties since 2003. Through the agreement, IDX announced that Government Securities (SBN) published locally by the Government of Republic Indonesia are listed and open for trading.

IDX together with DJPPR also announced their intention to develop the infrastructure of SBN market. In terms of facilitating the infrastructure, IDX has established the Auction Buyback SBN (LPKSBN) platform and Primary Dealer Quotes that is integrated with the Transaction Reporting System. The establishment of such infrastructure is a measure that allows Indonesia Financial Services Authroity (OJK) to supervise the transactions of SBN, SUN, and SBSN, based on the Act No. 24 of 2002 regarding Government Debt Securities and Act No. 19 of 2008 regarding Government Sharia Securities.

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