OJK Issues Regulations On Issuance Of Regional Bonds And Sukuk

JAKARTA - The Financial Services Authority (OJK) issued OJK Regulation Number 10 of 2024 concerning the Issuance and Reporting of Regional Bonds and Regional Sukuk (POJK 10/2024) for the expansion of local government fiscal financing sources through the utilization of funding sources in the capital market. "This POJK was also issued with the aim of increasing information disclosure and supervision over the issuance of bonds and regional sukuk," said Head of the Department of Literacy, Financial Inclusion and Communications of OJK Aman Santosa in Jakarta, quoted from Antara, Monday 12 August. POJK 10/2024 was issued to adjust and reconcile the provisions of Financial Services Authority Regulations governing regional and regional sukuk bonds with Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments as well as Government Regulation Number 1 of 2024 concerning Harmonization of National Fiscal Policy as the issued legislation as an effort to overcome the restrictions on the issuance of regional bonds and regional sukuk.Aman said POJK 10/2024 replaces, incorporating and revoking the validity of three POJKs was previously published in 2017. The three POJKs were POJK Number 61/POJK.04/2017 concerning Registration Statements in the Summary of Regional Bonds and/or Regional Suks, POJK Number 62/POJK.04/2017 concerning Prospectus and Prospectus Content and Content in the Summary of Regional Bonds and/or Regional Sukuks, and POJK Number 63/POJK.04/2017 concerning Reports and Announcements of Regional Bonds Issuers. and or Regional Suks.

The adjustment in POJK 10/2024 includes the addition of the obligation to obtain the results of regional bond and/or regional sukuk rankings, the adjustment of the obligation to submit the last period of Regional Government Financial Reports that have been audited by the Supreme Audit Agency is not mandatory to be submitted to the OJK, but must be available on local government websites. Then, adjustments related to the requirements for submitting regional regulatory documents as requirements for registration statements; and the abolition of provisions regarding the obligation to submit other documents in the form of considerations of the Minister of Home Affairs.