Prudential Principles in Issuing Medium-Term Debt Securities

Abstract

Medium Trem Notes (hereinafter MTN) is a form of investment activity for MTN holders and alternative financing for companies based on a sale and purchase agreement between the issuing company and the MTN holder company as the capital provider, where there is a promise of giving interest every month by the issuer. Problem Formulation: 1. What is the Position of MTN as a Medium-Term Debt Securities? 2. How is the Application of Legal Certainty and Protection in the Issuance and Payment of MTN as Medium-Term Debt Securities? Conclusion: 1. MTN is a debt capital market instrument which is evidence of debt recognition from the company and ownership securities as evidence of capital participation in the company. MTN is a security that contains a statement of debt from the issuer to the MTN holder and undertakes to pay or return the principal amount with interest. OJK stipulates OJK Regulation Number 30 of 2019 concerning the Issuance of Debt Securities and / or Sukuk Conducted Without a Public Offering as a legal umbrella. 2. MTN is a form of securities traded without a public offering on the Indonesia Stock Exchange. The Indonesia Stock Exchange is an institution that organizes market system facilities to bring together securities buying and selling offers between various companies involved in the purpose of trading the securities of companies that have been listed on the Indonesia Stock Exchange.