JAKARTA (Reuters) -Indonesia’s Ministry of Finance is seeking to establish a legal framework for special purpose vehicles covering asset securitisation and managers of trust funds, it said late on Thursday.
Indonesia has a civil law system and did not have rules for trusts until a new law was introduced in 2023.
The finance ministry’s new regulation will lay out detailed rules based on the 2023 law, which was intended to deepen Indonesia’s financial markets and attract investors to the country, it said in a statement.
Rules on trustees will adopt characteristics commonly used in countries with common law systems, including the separation of legal ownership and beneficial ownership, as well as the principle of bankruptcy remoteness, which ensures that managed assets remain separate from the insolvency risks of the party depositing the assets, the statement read.
“This regulation aims to provide stronger legal protection and enhance confidence in asset management in Indonesia,” the ministry said.
After the regulation comes into effect, the trustee model can be used by existing entities, including sovereign wealth funds and the private sector, it said.
The ministry said a consultation process and technical discussions were underway, without providing a time frame for when the new rules would be applied.
(Reporting by Gayatri Suroyo; Editing by Thomas Derpinghaus)
