General Information

Short Description

This Financial Services Authority Regulation is issued to replace the Financial Services Authority Regulation Number 60/POJK.04/2017 regarding the Issuance and Requirements of Green Bond Securities.

Content

1. The preparation of this Financial Services Authority Regulation is carried out in connection with the follow-up to the sustainable finance roadmap to develop the capital market industry and maintain environmental sustainability and sustainable social impact, and encourage the development of debt securities and sukuk based on sustainability. In addition, this Financial Services Authority Regulation is issued to replace the Financial Services Authority Regulation Number 60/POJK.04 /2017 regarding the Issuance and Requirements of Green Bonds by expanding the scope of the regulation so that it is not only limited to green bonds, but also includes green sukuk, social bonds/sukuk, sustainability bonds/sukuk, Sukuk Wakaf, and sustainability-linked bonds.
2. The legal basis of this Financial Services Authority Regulation are: Law Number 8 of 1995 on Capital Market and Law Number 21 of 2011 on Financial Services Authority as amended by Law Number 4 of 2023 on Financial Sector Development and Strengthening, and Law Number 4 of 2023 on Financial Sector Development and Strengthening.
3. This Financial Services Authority Regulation includes, among others, provisions regarding the scope of applicability of this Financial Services Authority Regulation which covers the issuance of EBUS based on sustainability conducted through a Public Offering or Issuance without a Public Offering of Securities that have a maturity of more than 1 (one) year, the obligation of the Issuer or Issuer to follow the provisions of laws and regulations in the Capital Market sector and other related regulations, unless specifically regulated in this Financial Services Authority Regulation. Furthermore, there are also arrangements related to the types of EBUS based on sustainability, Issuance Requirements, Registration Statement Documents and Issuance Documents without a Public Offering, Prospectus and Issuance Information Memorandum, Changes in the Use of Proceeds from the Issuance, and Reporting of Sustainability-Based EBUS. In addition, it also regulates provisions regarding Changes in the Status of Environmental EBUS, Social EBUS, Sustainability EBUS, and Waqf Sukuk. Furthermore, this POJK also regulates the issuance of EBUS related to sustainability. This POJK also contains arrangements related to External Review Providers and Independent Parties, incentives, administrative sanctions, and transitions.

Regulation can be downloaded from the following link:

POJK 18 of 2023 - Issuance and Requirements of Sustainability-related Debt Securities and Sukuk .pdf
 

Notes:

1. This Financial Services Authority Regulation shall come into force on the date of enactment, which is October 5, 2023.
2. Issuers that have issued Environmentally Sound Debt Securities before this Financial Services Authority Regulation comes into effect, continue to follow the provisions as stipulated in the Financial Services Authority Regulation Number 60/POJK.04/2017 regarding the Issuance and Requirements of Environmentally Sound Debt Securities referred to maturity.
3. Issuers that have conducted a phased Public Offering of Debt Securities and/or Sukuk in accordance with the Financial Services Authority Regulation Number 36/POJK.04/2014 regarding Sustainable Public Offerings of Debt Securities and/or Sukuk prior to this Financial Services Authority Regulation taking effect, may not conduct an offering of Debt Securities and/or Sukuk based on Sustainability for the next phase for the remaining time in the period of the Sustainable Public Offering of Debt Securities and/or Sukuk.

Regulations Status