Monday, 14 October 2019 | 10:59 WIB

BI Cooperates with KSEI on Short -Term Financing Solution for Investors

BI Cooperates with KSEI on Short -Term Financing Solution for Investors (Special)

JAKARTA, NETRALNEWS.COM -- Bank Indonesia (BI) has signed a Commercial Securities Transaction Administration and Settlement Agreement or SBK with the Indonesia Central Securities Depository (KSEI). SBK is a solution for short-term financing for investors.

The head of BI's Financial Market Development Department, Agusman, said that SBK was issued by non-bank corporations in the form of promissory notes and a term of up to one year registered with Bank Indonesia.

"Its usefulness is as an alternative short-term funding, such as working capital and bridging finance," Agusman said in a press statement in Jakarta.

According to him, there are benefits to the issuance of SBK. For publishers, the issuance of SBK is an alternative funding other than through banking and is not guaranteed by collateral.

For investors, investment in SBK is an alternative investment in money market instruments with more competitive returns compared to other money market products, such as deposits.

This SBK is a better return choice between the placement of funds in the bank or outside the bank. His presence, still Agusman, increasingly enriched instruments in the financial market, making it easier for authorities to carry out monetary policy.

"If now the instruments are minimal, it can be said that volatility in interest rates until the exchange rate is very large. Foreigners will quickly exit including very limited investors. Thus it is difficult for BI to enter the real sector," he concluded.