OJK Develop Programs to Support Infrastructure Development

JAKARTA - Chief Executive Officer of Capital Market Supervisory Service of Financial Services Authority (OJK) Nurhaida is optimistic that the capital market can contribute significantly to the national infrastructure development. Therefore the Financial Services Authority (OJK) develop several programs to support infrastructure development in Indonesia.

The Indonesian Government have high hopes for the capital market industry to support the focus of infrastructure development through a long-term funding system. Indonesia's investment atmosphere so far has been very positive with an investment grade rating from international rating agencies such as Standard & Poors (S&P), Moody's Investors Service and Fitch Ratings.

"The great hope comes to help the government build infrastructure, we have a strong foundation to support the government in infrastructure development, we will be more active in the capital market to deepen the capital market by issuing some programs," Nurhaida said as reported by Antaranews.com (5/7/2017).

More details Nurhaida explained that the rating grade can be achieved because Indonesia has good potential, according to her this momentum must be maintained properly. She also revealed that OJK conducting a study to issue new investment instruments, including infrastructure fund, infrastructure bond, and project bond.

The instrument also provides an alternative for investors in infrastructure investment. The infrastructure fund is intended to provide one of the funding alternatives for infrastructure development in Indonesia through the securitization of infrastructure assets. The product as a container to raise funds from investors.

The regulations on infrastructure fund products are being developed by OJK. In the near future, OJK Regulations on the product will be issued. Nurhaida also pointed out that for project bond instrument, it is a bond whose source of payment is derived from a project's revenue, while Infrastructure bonds are infrastructure-based bonds.