Bank Indonesia issues new rules to revive use of corporate commercial paper

Jakarta

INDONESIA'S central bank issued new rules that would work as a guideline for non-bank companies to issue commercial paper as it aims to revive the use of such notes and diversify instruments in the financial market.

In a new regulation dated July 19, Bank Indonesia (BI) said that a limited liability company will be allowed to issue promissory notes maturing in one year or less if it meets certain requirements, including a minimum capital and profitability. BI will also allow trade of the notes in the secondary market.