Regulatory Co-operation with the Capital Market Supervisory Agency of Indonesia

The SFC is pleased to announce that it has signed a Letter of Intent with Indonesia’s Ministry of Finance Capital Market Supervisory Agency (Bapepam) on the establishment of regulatory co-operation between the Bapepam and the SFC.

The two regulators aim to work towards the mutual recognition of investment funds authorised in their respective jurisdictions for cross-border distribution, with the longer-term goal of entering into a revised Memorandum of Understanding between the Bapepam and the SFC.

This Letter of Intent is an important step for both the Bapepam and the SFC in the area of cross-border regulation of funds. Under the Letter of Intent, both authorities agree to strengthen co-operation in matters pertaining to cross-border trading and the supervision of regulated funds. It is hoped that with enhanced communication and harmonisation of the respective regulatory regimes, both Hong Kong and Indonesia will be able to facilitate the development of deeper and broader investment markets through the trading in each other's markets of mutually recognised funds that are acceptable to both authorities.

Both the Bapepam and the SFC are members of the International Organization of Securities Commissions.  This Letter of Intent is signed in the spirit of mutual co-operation of member securities regulators.

The Letter of Intent was signed today by Mr Herwidayatmo, Chairman of the Bapepam, and Mr Andrew Sheng, Chairman of the SFC in Jakarta, Indonesia. Both authorities have also agreed to establish a bilateral working group to study how to achieve mutual regulatory assistance, including the exchange of views and information.

Mr Andrew Sheng said: “With the signing of the Letter of Intent, the SFC has taken a major step towards changing the regulatory landscape and begun the process of enhancing co-operation between securities regulators in the region. We believe such regulatory co-operation and proactive engagement will be beneficial for both regulators and that such cross-jurisdictional co-operation will lay the foundation for the eventual opening up of the regional fund markets for the broader cross-border distribution of investment products in Asia while at the same time ensuring the interests of  investors are protected.” 

Mr Herwidayatmo said: “Today, capital market regulators from Indonesia and Hong Kong agree to engage in a mutual co-operation to promote their respective investment fund industry. This co-operation will be beneficial for both regimes as they have each other investment fund industry wide open to tap into. In the spirit of understanding and mutual assistance, we will work together with our counterpart in Hong Kong to form a strong tie to promote and advance both industries as well as forever change the investment environment in the Asian region.”
 
Ends

Note:

1.   Bapepam, the Capital Market Supervisory Agency established under the Capital Market Law Number 8 in 1995, is a government agency that reports and is responsible to the Ministry of Finance of the Republic of Indonesia. Its day-to-day responsibility includes the provision of policy guidance, regulations and supervision of the capital market.