BI introduces six regulations on monetary policies, financial system

Aditya Suharmoko, The Jakarta Post, Jakarta | Wed, 06/16/2010 3:16 PM

The central bank has introduced six regulations, which it says not a capital control mechanism, to improve the effectivity of its monetary policies and stabilize the financial system and the rupiah.

The regulations include a minimum one-month holding period of Bank Indonesia (BI) certificates, which will be implemented starting July 7.

BI will also issue BI certificates maturing in nine months and 12 months starting August and September, respectively, acting BI governor Darmin Nasution said in a press conference.

The regulations will cover domestic and foreign investors, he said. "This isn't solely aimed at foreign investors," he said.