Insurance and pension fund industries are also liabilities or long term obligations in nature."Tanjungpandan, Belitung (ANTARA News) - The Financial Service Authority (OJK) is seeking to develop a domestic bond market to provide long term fund instrument to finance infrastructure development.
"Current we are doing a program together with Bank Indonesia, the government especially the finance ministry and self regulation organizations (SRO) to develop domestic bond market," deputy chairman the OJK Council of Commissioners Rahmat Waluyanto said here on Saturday (March 8).
Rahmat said bonds consists of s number of types including state bonds, corporate bonds, and regional bonds.
He said apart from being a long term instrument to finance infrastructure development, bonds are also needed to develop non bank financial sector especially insurance and pension fund industries.
"Insurance and pension fund industries are also liabilities or long term obligations in nature," he said.
He said until now long term instruments to finance insurance and non bank financial industries is not sufficiently available as corporate bond market has been developed in the country.
"Development of the securities market would certainly help insurance and non bank financial industries to manage liability assets to prevent mismatch in the management of liability assets," he said.
He said bond market by investors both institutional and retail investors should be developed at the same time, retail investors need more socialization.
Socialization and education for the people are already progressing faster in share market, he said.
He said the reason for giving priority to bond market development is that bond market development would contribute to expansion of insurance and pension fund industries.
Unlike in stock markets, the issuers are not only corporations but also the state or the government including regional administrations, he added.
(Uu.H-ASG/F001)
Editor: Priyambodo RH
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