Regulatory Alerts2014-12-30
Circular Letter No. 16/24/DKEM on Prudential Principles for Non-Bank Corporation External Debt Management
Bank Indonesia issued Circular Letter No. 16/24/DKEM to implement prudential principles for managing the external debt of non-bank corporations in Indonesia. The regulation mandates minimum hedging ratios for foreign currency liabilities exceeding a US$100,000 threshold and requires a minimum credit rating of BB- for new entities. It also defines specific exemptions for hedging and credit rating requirements, particularly for infrastructure projects and debt from bilateral or multilateral international creditors.
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