Ruling on CPs eased

Ruling on CPs eased

JAKARTA (JP): Bank Indonesia, the central bank, has eased its ruling on the issuance of commercial papers (CPs) on the local money market.

In a ruling issued last week, the central bank stated that it will allow the trading of CPs even if their ratings are still being processed by PT Pefindo, the country's only rating agency.

According to Bank Indonesia's earlier ruling, commercial papers should first be rated by a rating agency before being sold.

However, Pefindo, which also has the task to rate bond instruments, is still short of staff to carry out its rating activities. As a consequence, many companies have not been able to sell their CPs on schedule due to delays in the rating process. (hen)