Regulatory Alerts2014-12-30
Second Amendment of Bank Indonesia Circular Letter 16/24/DKEM on Prudential Principles for Managing External Debt of Non-Bank Corporations
Bank Indonesia issued Circular Letter No. 18/6/DKEM on 22 April 2016 to amend prudential regulations governing external debt management for non-bank corporations in Indonesia. The amendment clarifies that specific accounts receivable to residents can be classified as foreign currency assets if they relate to strategic infrastructure projects or transactions permitted in foreign currencies, subject to Bank Indonesia approval. Additionally, the regulation expands exemptions from mandatory minimum credit ratings for external debts used for infrastructure financing, refinancing, trade credit, and loans from finance companies meeting specific soundness criteria.
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