JAKARTA – The Guarantee and Financing Bureau of the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) stated that guarantee companies are allowed to invest in stocks listed on the Indonesia Stock Exchange (BEI), but the investment in stocks is limited to a maximum of 10 percent of the total investment.
This is based on Ministry of Finance Regulation Number 99/PMK.010/2011 concerning Amendments to Ministry of Finance Regulation Number 222/PMK.010/2008 regarding Credit Guarantee Companies and Reinsurance Guarantee Companies.
"Previously, guarantee companies were only allowed to invest in the form of deposits in general banks, with a maximum of 50 percent of the total investment. Now, they are allowed to invest in various forms, one of which is stocks listed on the BEI, limited to a maximum of 10 percent of the investment, so that the returns can be higher," said M Ihsanuddin, Head of the Guarantee and Financing Bureau at Bapepam in Jakarta on Friday (12/8/2011).
In addition to stocks, guarantee companies are also allowed to invest in corporate bonds and corporate sukuk that are rated as investment grade at the time of placement, up to a maximum of 20 percent of the total investment.
Furthermore, guarantee companies are permitted to invest in securities and/or sharia securities issued by Bank Indonesia (BI), with a maximum limit of 50 percent of the total investment.
Additionally, guarantee companies may also invest in mutual funds and/or sharia mutual funds, with a maximum limit of 5 percent of the total investment, and/or invest directly in reinsurance, limited to a maximum of 10 percent of the total investment.
(Source: okezone)