PRESS RELEASE
The Issuance of a New Bapepam Rule
 

Today on Juli 21^st 2003, Bapepam issued 1 (one) Rule No. IX.K.1. concerning Guidelines for Asset Backed Securities Collective Investment Contract, an implementing rule of Law No.8 year 1995 concerning Capital Market. This rule is a revision of preceding rule issued by the Chairman of Bapepam Decision No. Kep/19/2002 on October 18^th 2002.

Main revision of Bapepam Rule No. IX.K.1 concerning Guidelines for Asset Backed Securities Collective Investment Contract is the deletion of term “Participation Unit”. The purpose to delete the term is to make market participants understand that characteristic of Aset Backed Securities is different than unit participation of Mutual Funds’. Such differences, among other thing, shows that Aset Backed Securities (ABS) can be in a form of Fixed Cash Flow similar to Debt instrument in matter of providing certain income to the holders of the securities, or ABS Non Fixed Cash Flow similar to Equity instrument provide uncertain income, while in Participation Unit, it does not recognize both forms. 

With regard to the issuance of the new Bapepam Rule concerning Guidelines for Asset Backed Securities Collective Investment Contracts. It is expected to illuminate market participant perception on ABS that this instrument has different characteristics from Participation Unit of Mutual Fund has, thus investors of ABS can understand clearly its potential benefit if they invest in this kind of capital market instrument.

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