COMPARE AND CONTRAST BETWEEN

THE COMMERCIAL CODE AND THE BI

DECREE ON PROMISSORY NOTES
Definition
◦ Commercial Code
◦ Promissory note is a signed
document containing a written
promise to pay a stated sum to a
specified person or the bearer at a
specified date or on demand.
BI Decree
Commercial Paper or Surat
Berharga Komersial is a commercial
paper that issued by a non-bank
corporation, in the form of a
promissory note (surat sanggup)
and have a certain one-year
period of time which listed on the
Bank of Indonesia.
Art 1 (5)
 Parties
Commercial Code
In a promissory note, there is only two parties,
namely the note issuer / the person who sign
the notes and the note payee or the holder
of the promissory note. With the signatory
there is a basic agreement between the
note issuer and the note payee.
BI Decree (Art.3)
I. The Drawer: There are requirements of the drawer
are:
a. Listed as a share's issuer or have issued a bond or
sukuk which recorded by the Bursa Efek Indonesia
in the past 5 years (until the date of the submission
of application for issuance registration of the
commercial paper
b. Or not listed as an share's issuer or public company,
however fulfilled the requirements of:
a. Have operated for 3 year or at least 3 years as
long as the guarantees or the underwriting
b. Have at least Rp50.000.000.000 equity
c. Obtain a net profit for the last one year
II. The Avalist: By a bank corporation and/or non-bank
corporation which being the chief of the bank
corporation that issued the commercial paper
 Requirements
◦ Commercial code (art. 174)
- both the clause regarding the appointed - Scripless
party, and the terms "order" or
"promissory note to appointed party"
included in the text thereof and stated in - Issued under the rupiah or foreign exchange
the language used in such document"
- unconditional promise to pay a certain
amount of money
- determination of maturity date
- determination of the place where
payment must be made
- name of the person receiving such
payment or the appointed party to
whom such payment must be made
- an indication of the date and the place
of the order's signature
- signature of the party issuing such
document (signing)
BI Decree (Art 4)
- Transferred electronically
- Issued with discount system
- The minimal amount of every transaction;
Rp10.000.000.000 or USD1,000,000 or any other equivalent
foreign exchange
- The security purchases by the investor is at least
Rp500.000.000 or USD50,000 or any other equivalent
foreign exchange
- Have a month, 3 month, 6 month, 9 month, or 12 month
of tenor
- Has an instrument rating, issued by a rating agency
which registered in the Bank of Indonesia, with certain
minimum limits set by Bank of Indonesia
- Have to fulfill the requirements or a promissory notes
stipulated by the Commercial Code of Indonesia,
except for stipulations stipulated under this law or any
relevant laws
The issuance
◦ Commercial Code BI Decree
- By individually (Art 7)
◦ It is not stipulated in Commercial
- Continuous issuance (Art 7)The commercial
Code
paper that's about to be issued, is obligated
to have an approval of registration of the
issuance of the commercial paper by the
Bank of Indonesia (Art 8). Hereby, to give
the approval, the Bank of Indonesia has to
considerate (Art 9):
- The fulfillment of requirements as the issuer
of the commercial paper
- The fulfillment of the criteria of the
commercial paper
- The fulfilment of the openness of the
information by the issuer of the commercial
paper