Bank Indonesia Board of Governors Member Regulation Number 17 of 2026 Strengthens the Governance of Money Market and Foreign Exchange Market Participants

Introduction

On 30 June 2026, Bank Indonesia issued Board of Governors Member Regulation Number 17 of 2026 on Money Market and Foreign Exchange Market Participants and Financial Market Infrastructure (“PADG 17/2026”), which took effect on 30 June 2026.

PADG 17/2026 establishes a comprehensive governance framework for participants in the Money Market and Foreign Exchange Market (“PUVA”) as well as Financial Market Infrastructure providers. The regulation introduces more detailed standards concerning market conduct, treasury competency certification, institutional governance, and the implementation of Self-Regulatory Organizations (“SRO PUVA”) to enhance the integrity, professionalism, and resilience of Indonesia’s financial markets.

PADG 17/2026 was issued to strengthen the governance of Indonesia’s money market and foreign exchange market in response to the growing complexity of financial market transactions and infrastructure. Through this regulation, Bank Indonesia seeks to reinforce market discipline by requiring the implementation of the Market Code of Conduct, establishing competency standards for Treasury Dealers, expanding the role of SRO PUVA, and strengthening the institutional framework for Financial Market Infrastructure providers. These measures are intended to support the development of a transparent, efficient, credible, and internationally aligned financial market ecosystem.

Comparison

PADG 17/2026 revokes and replaces Board of Governors Member Regulation Number 13 of 2023 on Money Market and Foreign Exchange Market Participants and Financial Market Infrastructure (“PADG 13/2023”). The comparison is as follows:

Key Provisions

Mandatory Implementation of the Market Code of Conduct

Pursuant to Article 5, every Money Market and Foreign Exchange Market participant and Financial Market Infrastructure provider is required to implement the Market Code of Conduct.

Furthermore, Article 6 requires PUVA participants and Financial Market Infrastructure providers to:

·      prepare a Statement of Commitment to the Market Code of Conduct confirming their commitment to comply with and implement the Market Code of Conduct; and

·      update the Statement of Commitment at least once every one (1) year.

In addition, PUVA participants and Financial Market Infrastructure providers are required to submit their Statement of Commitment to the SRO PUVA no later than the last Working Day of January each year.

Competency Development and Treasury Certification

Pursuant to Article 9 paragraph (1), competency development for PUVA participants and Financial Market Infrastructure providers is conducted through Treasury Certification and other competency development programs.

Furthermore, Articles 10 paragraphs (1) and (2) provide that Treasury Certification shall be administered by a Professional Certification Institution (Lembaga Sertifikasi Profesi – “LSP”) and/or a Treasury Professional Association designated by Bank Indonesia.

Under Article 12 paragraphs (1) and (3), Treasury Certification providers are required to adopt a Treasury Certification Scheme approved by the National Professional Certification Agency (Badan Nasional Sertifikasi Profesi – “BNSP”) for LSPs, or by Bank Indonesia for Treasury Professional Associations.

Competency Standards and Tiered Treasury Certification

Pursuant to Article 16 paragraph (1), every Treasury Dealer must hold a valid Treasury Certificate with a maximum validity period of three (3) years.

Articles 17 and 18 classify Treasury Certification into the following competency levels:

For Treasury Dealers employed by Banks, Sharia Business Units (UUS), and Financial Market Infrastructure providers in the form of Central Counterparties (“CCPs”):

·      Level 5: Employees who perform Treasury Activities without supervising other positions;

·      Level 6: Employees supervising at least one subordinate level and/or overseeing Treasury Activities; and

·      Level 7: Directors responsible for the treasury function and employees one level below such directors who formulate or determine strategic treasury policies.

For Treasury Dealers employed by Brokerage Companies serving as Financial Market Infrastructure providers:

·      Level 5: Employees performing Treasury Activities or supervising at least one subordinate level and/or carrying out treasury supervisory functions; and

·      Level 6: Directors responsible for the treasury function.

Licensing Requirements and Prohibition on the Use of Unregistered Treasury Dealers

Pursuant to Article 23 paragraph (2), PUVA participants and Financial Market Infrastructure providers are prohibited from engaging the services of Treasury Dealers who are not registered with Bank Indonesia.

Treasury Dealers must satisfy requirements relating to both their individual eligibility and professional competency in conducting Treasury Activities.

Furthermore, Article 24 paragraph (2) provides that the individual eligibility requirements must include, at a minimum:

·      being an individual person;

·      possessing good integrity, as demonstrated by compliance with applicable laws and regulations, including never having been found to have violated the Market Code of Conduct;

·      serving as an employee or director of a PUVA participant or Financial Market Infrastructure provider conducting Treasury Activities; and

·      being a member of a Treasury Professional Association registered with Bank Indonesia.

Professional competency must, at a minimum, be evidenced by possession of a valid Treasury Certificate.

Institutional Framework for Treasury Professional Associations

Pursuant to Article 31, Treasury Professional Associations are responsible for:

·      coordinating the preparation of professional standards and codes of ethics;

·      establishing professional standards and codes of ethics;

·      establishing a professional ethics enforcement committee;

·      enforcing compliance with professional ethics;

·      organizing continuing education and training programs;

·      conducting quality reviews of their members in accordance with applicable laws and regulations;

·      administering Treasury Certification where an LSP is unable to conduct Treasury Certification, as designated by Bank Indonesia; and

·      carrying out other duties assigned by Bank Indonesia.

Furthermore, Article 35 provides that Treasury Professional Associations designated by Bank Indonesia as the official professional organization for Treasury Dealers must be Indonesian legal entities and are responsible for establishing professional codes of ethics and administering competency development programs.

Administration of SRO PUVA

Pursuant to Article 70 paragraph (1), Bank Indonesia is authorized to designate an SRO PUVA as the institution supporting the development of the Money Market and Foreign Exchange Market.

Furthermore, Article 71 paragraph (1) provides that the SRO PUVA has the following principal functions:

·      supporting the implementation of Bank Indonesia’s policies;

·      preparing and issuing technical and micro-level regulations relating to the Money Market, Foreign Exchange Market, and Financial Market Infrastructure;

·      establishing treasury competency standards and administering continuing education and training programs; and

·      receiving, publishing, and administering Statements of Commitment to the Market Code of Conduct.

In addition, Article 74 paragraph (1) requires banks and industry associations operating in the Money Market and Foreign Exchange Market to become members of the SRO PUVA.

Transitional Provisions

Pursuant to Article 128, Treasury Dealers and Treasury Professional Associations registered with Bank Indonesia before the entry into force of PADG 17/2026, namely before 30 June 2026, remain recognized under the new regulation.

Furthermore, Treasury Professional Associations previously registered as Treasury Certification providers are automatically recognized as certification providers under PADG 17/2026 without the need for re-registration.

Article 129 grants a transitional period until 31 December 2027 for Treasury Dealers employed by Brokerage Companies and Central Counterparties (CCPs) serving as Financial Market Infrastructure providers to comply with the new requirements.

Meanwhile, Article 130 requires banks to become members of the SRO PUVA no later than 1 October 2026, while industry associations must comply with this requirement by 4 January 2027.

In addition, Article 131 requires Financial Market Infrastructure providers to satisfy the applicable operational requirements no later than 29 January 2027.

Closing

PADG 17/2026 strengthens the governance of Indonesia’s money market and foreign exchange market by introducing comprehensive provisions governing the implementation of the Market Code of Conduct, Treasury Dealer competency certification, the administration of the SRO PUVA, and enhanced institutional standards for market participants and Financial Market Infrastructure providers.

This policy is expected to improve the integrity, professionalism, and reliability of market participants while supporting the development of a more transparent, efficient, and internationally aligned financial market.

Accordingly, market participants, Financial Market Infrastructure providers, Treasury Professional Associations, and industry associations should ensure full compliance with all new obligations and transitional requirements, including the implementation of the Market Code of Conduct, fulfillment of Treasury Certification requirements, membership in the SRO PUVA, and compliance with other applicable operational requirements.

Compliance with these provisions will play a vital role in supporting the stability of Indonesia’s financial system and promoting a sound, credible, and sustainable money market and foreign exchange market.