no. 4/20/d pm 14. bank indonesia-sbi administration system, hereinafter referred to as bi-sps, is a...
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No. 4/20/DPM Jakarta, November 18, 2002
CIRCULAR LETTER
Subject: Procedure for Issuance, Trading, and Administration of Bank Indonesia
Certificates
In regard to the enactment of Bank Indonesia Regulation Number 4/9/PBI/2002
dated November 18, 2002, concerning Open Market Operations (State Gazette of the
Republic of Indonesia Number 126 of 2002, Supplement to the State Gazette of the
Republic of Indonesia Number 4243) and Bank Indonesia Regulation Number
4/10/PBI/2002 dated November 18, 2002, concerning Bank Indonesia Certificates (State
Gazette of the Republic of Indonesia Number 127 of 2002, Supplement to the State
Gazette of the Republic of Indonesia Number 4244), it is necessary to enact
implementation guidelines concerning the issuance, trading, and administration of Bank
Indonesia Certificates as follows:
1. GENERAL REVIEW
1. Bank is a Commercial Bank as referred to in Act Number 7 of 1992
concerning Banking as amended by Act Number 10 of 1998, conducting
conventional banking operations;
2. Open Market Operations, hereinafter referred to as OMOs, are activities
conducted by Bank Indonesia in money market transactions with Banks and
other parties for the purpose of monetary control;
3. Bank ...
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3. Bank Indonesia Certificates, hereinafter referred to as SBIs, are securities
denominated in the Rupiah currency, issued by Bank Indonesia as short-term
debt instruments;
4. SBI Auction is the sale of SBIs conducted by Bank Indonesia within the
framework of implementation of monetary policy;
5. Broker is a money market broker and securities dealer-broker appointed by
Bank Indonesia;
6. Stop-out Rate, hereinafter referred to as SOR, is the highest discount rate
obtained in auction within the framework of achieving the quantitative target
for SBIs to be sold by Bank Indonesia;
7. Automatic Bidding System, hereinafter referred to as ABS, is a system for
bidding for funds and securities from Banks or Brokers on-line and in real
time, within the framework of OMOs;
8. SBI Transactions conducted under Repurchase Agreement, hereinafter referred
to as SBI-Repo, are SBIs sold under the condition of mandatory repurchase by
the seller at an agreed price and term;
9. Outright SBI Transactions, hereinafter referred to as SBI-Outright, are
transactions in the sale or purchase of SBIs without recourse, without any
obligation for repurchase or resale;
10. SBI Administration Accounts are securities accounts used for registering
ownership of SBIs at the Central Registry, and consist of SBI Trading
Accounts and SBI Collateral Accounts;
11. SBI Trading Account is a securities account used for registering ownership of
tradable SBIs;
12. SBI Collateral Account is a securities account used for registering ownership
of SBIs secured as collateral;
13. Demand Deposit Account is a Rupiah funds account held by a Bank at Bank
Indonesia;
14. Bank ...
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14. Bank Indonesia-SBI Administration System, hereinafter referred to as BI-SPS,
is a system managed by Bank Indonesia for transaction settlement,
encompassing Fund Settlement and Securities Settlement, and registration of
ownership of SBIs;
15. Delivery Versus Payment, hereinafter referred to as DVP, is a mechanism for
transaction settlement by means of Securities Settlement conducted
simultaneously with Fund Settlement in the BI-SPS;
16. Free of Payment, hereinafter referred to as FoP, is a mechanism for transaction
settlement in which Securities Settlement is conducted within the BI-SPS
while Fund Settlement is conducted outside the BI-SPS;
17. Securities Settlement is transfer of securities ownership from the seller to the
buyer in the SBI Administration Account of each party in accordance with a
transfer order from the seller;
18. Fund Settlement is transfer of funds from the buyer to the seller of securities in
the Demand Deposit Account of each party in accordance with payment order
from the buyer;
19. Book Entry Register, hereinafter referred to as BER, is a system for scripless
registration of Securities ownership, conducted electronically in a journal;
20. Central Registry is the function performed by Bank Indonesia c.q. Money
Market Transaction Settlement Division—Directorate of Monetary
Management (PTPU-DPM), Jl. M.H. Thamrin No. 2, Jakarta 10110, for
registration of securities ownership using the BER for the account of Banks
and Sub-Registries;
21. Sub-Registry is the function performed by a Bank or non-Bank party
appointed by Bank Indonesia for registration of securities ownership using the
Book Entry Register (BER) for the account of non-bank customers
purchasing/selling SBIs;
22. Confirmation of Securities Registration, hereinafter referred to as KPS, is
proof of registration of SBI ownership issued by the Central Registry;
23. Statement ...
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23. Statement of Securities Secured as Collateral, hereinafter referred to as SKSD,
is proof of SBIs secured as collateral, issued by the Central Registry;
24. Bank Indonesia-Real Time Gross Settlement System, hereinafter referred to as
the BI-RTGS System, is an system for interbank electronic funds transfer in
the Rupiah currency with settlement conducted individually on a per
transaction basis in accordance with prevailing regulations.
II. ISSUANCE OF SBIs
A. Characteristics
1. SBIs have units of Rp 1,000,000 (one million rupiahs).
2. The terms of SBIs are 1 (one) month, 2 (two) months, 3 (three) months, 6
(six) months, and 12 (twelve) months, stated in number of days and
calculated from the transaction settlement date through the maturity date.
A sample calculation of SBI term is presented in Appendix 1.
3. The SBI discount is calculated according to the true discount formula as
follows:
Nominal Value x 360
Cash Value = ---------------------------------------------
360 + {(Discount Rate) x (Term)}
Discount Value = Nominal Value – Cash Value
SBI Discount Value shall be calculated as per the example in Appendix 2.
4. SBIs are issued in scripless form.
5. SBIs may be traded on the secondary market.
B. Principles and Requirements
1. SBIs are issued through an auction mechanism.
2. SBI auctions are conducted on the basis of quantity targets, taking into
account the interest/discount rates that are formed.
3. SBI ...
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3. SBI auctions are held every Wednesday, or on the following working day
or another working day if a Wednesday is a public holiday. If necessary,
Bank Indonesia may hold additional SBI auctions on other working days.
4. Concerning maturity date, it is stipulated that SBIs reach maturity on
Thursday or on the following working day if a Thursday is a public
holiday. If necessary, Bank Indonesia may stipulate maturity for another
working day.
5. Bank Indonesia shall announce the planned quantity target for the auction
comprising an indicative target no later than 1 (one) working day prior to
the day of SBI auction, using the ABS and/or Money Market Information
Center (PIPU) and/or other means as determined by Bank Indonesia.
6. The facility used for placing SBI bids is the ABS facility.
7. Parties eligible to participate in SBI auction, hereinafter referred to as
Bidders, may be differentiated by:
a. Principal Bidders, namely Banks and Brokers possessing ABS facilities
and conducting transactions in SBI auctions directly with Bank
Indonesia, subject to the following provisions:
1) Banks conduct transactions for their own account and/or for the
account of other Banks;
2) Brokers conduct transactions for the account of other parties
(Banks)
b. Subsidiary Bidders, namely Banks not possessing ABS facilities.
8. Principal Bidders are required to submit the names of not more than 3
(three) authorized dealers for conducting SBI auction transactions and the
User Unique Identification (UUID) for each of these authorized dealers to
the Money Market Operations Division (OPU), Directorate of Monetary
Management (DPM), Bank Indonesia, Jl. M.H. Thamrin No. 2, Jakarta
10110, using Form 1.a according to the specimen in Appendix 3-a.
9. In the event ...
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9. In the event of any change in authorized dealer and/or UUID as referred to
in number 8, the Principal Bidder shall report the change to the Money
Market Operations Division stating the names of 3 (three) authorized
dealers and their UUIDs using Form 1.b according to the specimen in
Appendix 3-b. This report shall be conveyed to Bank Indonesia no later
than 1 (one) working day prior to the time that the authorized dealer
concerned conducts transactions in SBI auction.
10. Principal Bidders are required to ensure the secure use of the UUID and
shall be fully responsible for SBI auction transactions submitted to Bank
Indonesia.
11. Prior to placing transactions in SBIs, Banks and Brokers are required to
sign a Statement as referred to in Appendix 4, stating that they are subject
to and bind themselves to all provisions enacted by Bank Indonesia in
regard to SBI transactions.
12. A party conducting SBI transactions is required to hold an SBI
Administration Account, subject to the following provisions:
a. A Bank functioning as a Sub-Registry is required to have two SBI
Administration Accounts at the Central Registry, one for transactions
for its own account and one for transactions for the account of other
parties (Sub-Registries);
b. A Bank not functioning as Sub-Registry is required to have one SBI
Administration Account at the Central Registry for transactions for its
own account;
c. A non-Bank party functioning as Sub-Registry is required to have one
SBI Administration Account at the Central Registry for transactions for
the account of other parties;
d. Other party is required to have an SBI Administration Account at a
Sub-Registry.
13. The procedure ...
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13. The procedure for opening an SBI Administration Account at the Central
Registry is stipulated in Roman numeral V item A, while the procedure for
opening an SBI Administration Account at a Sub-Registry shall be
stipulated by the respective Sub-Registry.
14. Banks are required to have sufficient balance in the Demand Deposit
Account for settlement of SBI transactions on the primary market, subject
to the following provisions:
a. A Bank placing a direct bid shall bear responsibility to the limit of total
SBIs for its own account; and
b. A Bank placing a bid through another Bank or Broker shall bear
responsibility for the total SBIs for which bids are placed for the
account of the Bank concerned.
15. Settlement of SBI Auction transactions on the primary market shall take
place on the working day after the day of the SBI auction (one-day
settlement).
C. Procedure for Auctioning of SBIs
1. On the day of the SBI Auction, Principal Bidders shall place their bids
with the Money Market Operations Division by means of the ABS facility,
during the hours of 10.00 through 14.00 hours Jakarta Time.
2. SBI bids as referred to in the above number 1 shall be placed by:
a. the Bank Head Office:
1) for a Bank having its head office in the working area of the Bank
Indonesia Head Office;
2) for a Bank having its head office in the working area of a Bank
Indonesia Regional Office, but not having a branch office in the
working area of the Bank Indonesia Head Office.
b. a Branch office of the Bank in the working area of the Bank Indonesia
Head Office, for a bank having its head office in the working area of a
Bank ...
8
Bank Indonesia Regional Office. The Money Market Operations
Division shall be informed of the appointment of such Bank branch
office no later than 1 (one) working day prior to SBI transactions and
shall remain effective until a letter is issued for revocation of the
appointment.
c. a Broker.
3. A Bank not having an ABS may bid in SBI auction as a Subsidiary Bidder
by placing bids through a Principal Bidder as referred to in the above item
B.7.a. The Bank shall be required to send confirmation to the Money
Market Operations Division no later than 30 minutes after close of auction
through the Reuters Monitoring Dealing System (RMDS) or by telephone
confirmed by facsimile, using the form attached in Appendix 5.
4. A Bank or Broker placing a bid for the account of another party (Bank) is
required to submit a Detailed List of SBI Bids to the Money Market
Operations Division no later than 15 (fifteen) minutes after close of
auction, using the form attached in Appendix 7, by means of ABS
electronic mail (e-mail).
5. The scope of bids as referred to in number 1 covers quantity bids and
discount rate bids by maturity, subject to the following provisions:
a. quantity bids from each Bank and Broker shall be submitted in
amounts of no less than 1,000 (one thousand) units or Rp
1,000,000,000 (one billion rupiahs), and thereafter in increments of 100
(one hundred) units or Rp 100,000,000 (one hundred million rupiahs);
b. discount rate bids shall be submitted in increments of 0.0625% (six
hundred and twenty-five per million).
6. The Bank or Broker shall be responsible for the integrity of the data of any
SBI bids placed, and a Broker is prohibited from placing bids for its own
account.
7. Any SBI ...
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7. Any SBI Bidder having placed a bid is prohibited from withdrawing the
bid.
8. The winner of the SBI Auction shall be determined according to the
following provisions:
a. in the event that the discount rate is lower than the SOR, the Principal
Bidder concerned shall receive all SBI quantity bids placed;
b. in the event that the discount rate is equal to the SOR, the Principal
Bidder concerned may receive all SBI quantity bids placed or part of
the SBI quantity bids calculated on a pro-rata basis.
A sample calculation for determining the winner of the SBI auction is
presented in Appendix 6.
9. Bank Indonesia may adjust the quantity outcome of the SBI Auction or
cancel all quantity results from SBI Auction in the event that the SOR to
be formed from the outcome of SBI Auction pertaining to quantity targets
is outside the bounds of reasonability.
10. Bank Indonesia shall announce the result of the auction comprising the
overall quantity and weighted average discount rate of winning bids
through the ABS facility, the Money Market Information Center, or other
facility no later than 16.30 hours Jakarta Time on the day of the auction.
11. Bank Indonesia shall inform Principal Bidders winning the SBI auction of
the outcome of auction in terms of quantity and discount rate of SBIs,
using the ABS facility on the day of the auction.
12. The procedure for placement of SBI Auction bids through the ABS facility
shall conform to the mechanism set out in the ABS Standard Operating
Procedure (SOP) stipulated in Appendix 7.
III. SECONDARY ...
10
III. SECONDARY MARKET TRADING OF SBIs
A. SBI-Repo Trading with Bank Indonesia
1. Principles Governing SBI-Repo Trading with Bank Indonesia
a. Bank Indonesia shall conduct SBI transactions under Repo only with
Banks.
b. SBIs that may be sold to Bank Indonesia under Repo are SBIs held by
the Bank concerned and having a remaining maturity of no less than 4
(four) days.
c. The total value of SBIs held by a Bank that may be sold to Bank
Indonesia under Repo shall not exceed 25% of the average quantity of
SBIs won by the Bank for its own account during the last 3 (three) SBI
auctions conducted by Bank Indonesia.
A sample calculation of SBIs that may be sold under Repo to Bank
Indonesia is presented in Appendix 8.
d. The term of Repo is 1 (one) working day.
e. The Repo discount rate is the highest value of:
1) weighted average interbank money market rate in the morning
session for 1 (one) day term at 1 (one) working day prior to the
transaction, plus 200 (two hundred) basis points; or
2) weighted average discount rate for 1 (one) month SBIs in the latest
auction, plus 200 (two hundred) basis points.
A sample calculation of the SBI-Repo discount rate is presented in
Appendix 8.
f. Settlement of SBI-Repo transactions shall be conducted on the day of
the SBI-Repo transaction (same-day settlement) using the DVP
mechanism.
8. A Bank ...
11
g. A Bank bidding for an SBI-Repo transaction is required to have
sufficient balance in the SBI Trading Account for settlement of the
SBI-Repo transaction.
2. Procedure for SBI-Repo Transactions with Bank Indonesia
a. On the date of the SBI-Repo transaction, the Bank shall place a bid for
the SBI-Repo transaction with the Money Market Operations Division
through the RMDS or by telephone confirmed by facsimile, during the
hours of 15.00 through 16.00 hours Jakarta Time.
b. Bids for SBI-Repo transaction as referred to in the above letter a shall
be placed by:
1) the Bank Head Office:
a) for a Bank having its head office in the working area of the
Bank Indonesia Head Office;
b) for a Bank having its head office in the working area of a Bank
Indonesia Regional Office, but not having a branch office in the
working area of the Bank Indonesia Head Office.
2) Branch Office of the Bank in the working area of the Bank
Indonesia Head office, for a Bank having its head office in the
working area of a Bank Indonesia Regional Office as designated in
SBI auction transactions and effective until issuance of a letter
revoking such designation.
c. Application for SBI-Repo transaction by a Bank shall be subsequently
confirmed by delivery of Application for Transfer of Registration-Repo
(SPPR-Repo) no later than 17.30 hours local time, using form BER-13
according to the specimen in Appendix 21.
d. The SPPR-Repo as referred to in the above letter c shall be conveyed
to:
1) the Central Registry by:
a) the head ...
12
a) the head office of a Bank having its head office in the working
area of the Bank Indonesia Head Office;
b) a branch office in the working area of the Bank Indonesia Head
Office, for a bank having its head office in the working area of
a Bank Indonesia Regional Office.
2) the Central Registry through the local Bank Indonesia Regional
Office, for a Bank having its head office in the working area of a
Bank Indonesia Regional Office and not having a branch office in
the working area of the Bank Indonesia Head Office.
e. In the event that the data in the SPPR-Repo form as referred to in letter
c is incomplete or contains errors, Bank Indonesia shall inform the
Bank of the matter for filling in of the missing information or
correction and thereafter to be resubmitted no later than 17.30 hours
local time. Any application for SBI-Repo transaction that is approved
but not accompanied by the required SPPR-Repo shall be declared
void.
f. Notification of approval or rejection of an SBI-Repo bid shall be
conveyed by the Bank to the Money Market Operations Division using
the RMDS facility or telephone confirmed by facsimile.
B. SBI-Repo and SBI-Outright Trading Conducted Between Banks/Sub-
Registries
1. The principles and procedures for SBI-Repo and SBI-Outright trading
conducted between Banks/Sub-Registries are left to the agreements made
by the parties to these transactions.
2. Settlement of SBI-Repo and SBI-Outright trading between Banks/Sub-
Registries may be conducted through Bank Indonesia.
IV. SBI ...
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IV. SBI ADMINISTRATION SYSTEM
Bank Indonesia shall administer SBIs using the BI-SPS, consisting of the system
for registration of SBI ownership and system for transaction settlement, itself
consisting of Payment Settlement and Securities Settlement, including repayment
of SBI principal.
A. Principles Governing Registration of SBI Ownership
1. Bank Indonesia shall administer SBI ownership through the BI-SPS,
whether for SBIs obtained through SBI transactions on the primary market
or SBI transactions on the secondary market encompassing SBI-Repo
transactions between Banks and Bank Indonesia, SBI-Repo transactions
between Banks/Sub-Registries, and SBI-Outright transactions between
Banks/Sub-Registries.
2. Registration of SBI ownership shall be performed by Bank Indonesia
according to the principle of the two-tier system, consisting of the Central
Registry and Sub-Registries, using the BER system.
3. SBI ownership at the Central Registry and Sub-Registries shall be recorded
in SBI Administration Accounts consisting of SBI Trading Accounts and
SBI Collateral Accounts.
4. Sub-Registries shall not be permitted to maintain SBI Administration
Accounts for their own account or for the account of the management,
shareholders, and Sub-Registry manager, including the management and
employees of the Sub-Registry manager.
5. Non-Bank customers purchasing SBIs on the secondary market, including
those conducting repo transactions, are required to have an SBI
Administration Account at a Sub-Registry. For a customer of a bank that
is not a Sub-Registry, the SBI Administration Account may be opened at
the Sub-Registry through the Bank concerned.
6. Sub-Registries ...
14
6. Sub-Registries are required to inform non-bank customers holding SBI
Administration Accounts that the names recorded in the administration of
SBIs in the Sub-Registry are names of SBI holders.
7. Sub-Registries are required to record the names of SBI holders in the SBI
administration. In the event that an SBI holder is the customer of another
Bank, the name of the SBI holder may be recorded in the Sub-Registry by
stating the name of the Bank q.q. name of the SBI holder concerned.
B. Principles Governing SBI Transaction Settlement
1. The mechanism for SBI transaction settlement through the BI-SPS shall
operate on a per transaction basis (gross settlement), differentiated by DVP
and FoP.
2. Bank Indonesia shall conduct the SBI transaction settlement for SBI
primary market transactions, SBI secondary market transactions
encompassing SBI-Repo transactions and SBI-Outright transactions, and
securing of SBIs as collateral.
3. Settlement of SBI transaction on the primary market and SBI-Repo
transactions between Banks and Bank Indonesia shall be conducted by
means of the DVP mechanism.
4. Bank Indonesia may conduct SBI transaction settlement on the secondary
market both by means of DVP and FoP for the following:
a. transactions between Banks;
b. transactions between Sub-Registries for the account of their customers;
c. transactions between Banks and Sub-Registries for the account of their
customers.
5. Settlement of transactions between Banks/Sub-Registries shall be
conducted subject to the following provisions:
a. by the DVP mechanism for SBI-Repo transactions;
b. by the DVP or FoP mechanism for SBI-Outright transactions.
6. For ...
15
6. For the purpose of Fund Settlement for SBI transactions with Bank
Indonesia, Bank Indonesia is authorized to debit the Demand Deposit
Account of any Bank holding liabilities for settlement of SBI Auction
transactions.
7. Settlement of SBI Auction transactions on the primary market shall take
place on the working day after the SBI auction is held (one-day
settlement), while settlement of SBI transactions on the secondary market
shall take place on the same day (same-day settlement).
8. During settlement of SBI transactions on the secondary market, the SBIs
concerned shall have a remaining maturity of no less than 3 (three)
working days in the case of Outright transactions and no less than 4 (four)
working days in the case of repo transactions.
9. For the purpose of SBI Fund Settlement for customer transactions on the
Secondary Market, a Sub-Registry is required to appoint a Bank to conduct
Fund Settlement.
V. REGISTRATION OF SBI OWNERSHIP
A. Procedure for Opening of SBI Registration Account
1. At the Central Registry
a. A Bank and Sub-Registry is required to open an SBI Administration
Account by submitting an application to the Central Registry for
opening of an SBI Administration Account.
b. The application as referred to in number 1 shall be accompanied by:
1) Data of the Bank/Sub-Registry, using the BER-01 form according
to the specimen in Appendix 10;
2) Specimen stamp of the Bank/Sub-Registry and specimen signatures
of authorized officers of the Bank/Sub-Registry for conducting
settlement of SBI transactions, numbering no less than 2 (two)
persons ...
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persons and no more than 6 (six) persons for each, using the BER-
02 and BER-03 forms according to the specimens in Appendices 11
and 12;
3) Data of authorized officers for collection of the KPS, accompanied
by identification.
2. At Sub-Registries
a. A non-Bank customer is required to open an SBI Administration
Account by submitting an application to the Sub-Registry for opening
of an SBI Administration Account.
b. The application referred to in letter a shall be accompanied by the
required documents stipulated by each Sub-Registry.
c. A non-Sub-Registry Bank may submit an application to a Sub-Registry
for opening of an SBI Administration Account on behalf of its
customer.
B. Procedure for Registration of SBI Ownership
1. Registration of SBI ownership shall be conducted at the Central Registry
and Sub-Registries.
2. The Central Registry and Sub-Registries shall issue the KPS, stating the
balance of the SBI Administration Account, as proof of registration of SBI
ownership.
3. The KPS as referred to in number 2 shall be issued subject to the following
provisions:
a. Upon any entry/change in registration of ownership in an SBI
Administration Account, whether an SBI Trading Account or SBI
Collateral Account, the Central Registry and Sub-Registry shall issue a
Daily KPS on the same day stating the changes in ownership and
positions in the SBI Administration Account concerned;
b. At the end ...
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b. At the end of each month, the Central Registry and Sub-Registries shall
issue the Monthly KPS stating the position of the SBI Administration
Accounts;
c. The format of the KPS issued by the Central Registry for KPS as
referred to in letter a and letter b shall comply with forms BER-04 and
BER-05 according to the formats presented in Appendix 13 and
Appendix 14;
d. The format of the KPS issued by a Sub-Registry for KPS as referred to
in letter a and letter b shall comply with the format stipulated by the
respective Sub-Registry.
4. Banks and Sub-Registries are required to collect the Daily KPS and
Monthly KPS from the Central Registry at 1 (one) and 2 (two) working
days respectively, after the date of issue of the KPS. The Central Registry
shall not bear responsibility for any KPS that is not collected.
5. Sub-Registries are required to convey the Daily KPS and Monthly KPS
that they issue to the SBI holders. In the event that an SBI holder opens an
SBI Administration Account through a Bank that is not a Sub-Registry, the
Sub-Registry may convey the Daily KPS and Monthly KPS to the SBI
holder through the Bank concerned. The Daily KPS and Monthly KPS
shall be conveyed according to the procedure stipulated by the respective
Sub-Registry.
6. A KPS for by a Bank having its head office outside the working area of the
Bank Indonesia Head Office and not having a branch office in the working
area of the Bank Indonesia Head Office shall be conveyed directly by the
Central Registry to the head office of the Bank concerned by means of
post, preceded by facsimile.
7. In the event of any discrepancy between registration of SBI ownership at
the Central Registry and at the Bank or Sub-Registry, the Bank and Sub-
Registry shall issue a response to the Central Registry concerning the
discrepancy ...
18
discrepancy no later than 1 (one) working day after the deadline for
collection of the KPS as referred to in the above number 4, using form
BER-06 according to the specimen in Appendix 15.
8. In the event that a Bank and Sub-Registry has reported a discrepancy in
registration as referred to in number 7, Bank Indonesia shall issue a reply
no later than 5 (five) working days after the date of receipt of this report.
9. In the event that a Bank and Sub-Registry does not file objection to a KPS
as referred to in number 7, the Bank and Sub-Registry shall be deemed to
have approved the registration of SBI ownership at the Central Registry.
VI. SETTLEMENT OF SBI TRANSACTIONS ON PRIMARY MARKET
1. Fund Settlement of SBI transactions shall take place by debiting an amount in
the SBI nominal value from and thereafter crediting an amount in the SBI
discount value to the Demand Deposit Account of the Bank purchasing the
SBIs through the BI-RTGS System, subject to the following provisions:
a. A Bank bidding directly shall be responsible to the limit of total SBIs for
which bids are placed for its own account; and
b. A Bank bidding through another Bank or Broker shall be responsible for
the total SBIs for which bids are made for the account of that Bank.
2. At the same time as the Fund Settlement referred to in the above number 1,
Securities Settlement shall be conducted by crediting the SBI Trading Account
held by the Bank purchasing the SBIs in the amount of the SBI nominal value.
3. In the event that on the day of transaction settlement, the Bank has insufficient
balance in its Demand Deposit Account to cover a debit in the nominal value
of SBIs won by the Bank purchasing the SBIs as referred to in the above item
1, all outcome of SBI auction won by the Bank concerned shall be declared
void.
VII. SETTLEMENT ...
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VII. SETTLEMENT OF SBI TRANSACTIONS ON SECONDARY MARKET
A. Procedure for Settlement of SBI-Repo Transactions
1. SBI-Repo Transactions with Bank Indonesia
a. On the day of settlement of the SBI-Repo transaction:
1) Fund Settlement shall be conducted by crediting the nominal value
of the SBI-Repo to and debiting the discount value of the SBI-Repo
from the Demand Deposit Account of the Bank selling the SBI
under Repo.
2) Securities Settlement shall be conducted by debiting the SBI
Trading Account held by the Bank selling the SBI in the nominal
value of the SBI-Repo.
b. In the event of insufficient balance in the SBI Trading Account held by
the Bank selling the SBI-Repo, the SBI-Repo transaction shall be
declared void.
c. In the event that an SBI-Repo transaction is declared void, the Bank
may collect the SPPR-Repo form stamped “VOID” from the Money
Market Transaction Settlement Division or the local Bank Indonesia
Regional Office 1 (one) working day after the day of cancellation of
the SBI-Repo transaction.
d. Upon maturity of SBI-Repo:
1) Fund Settlement shall be conducted by debiting the Demand
Deposit Account of the Bank selling the SBI-Repo in the nominal
value of the SBI-Repo at maturity.
2) Securities Settlement shall be conducted by crediting the SBI
Trading Account held by the Bank selling the SBI-Repo in the
nominal amount of the SBI-Repo.
e. In the event that upon maturity of an SBI-Repo transaction, the
Demand Deposit Account of the Bank selling the SBI-Repo has
insufficient ...
20
insufficient balance to cover debiting in the nominal value of the SBI-
Repo reaching maturity, the SBI sold under repo shall be declared as
redeemed prior to maturity. For the remaining period until maturity of
the SBI, the Bank concerned shall be charged the discount rate
according to the SBI-Repo discount rate.
2. SBI-Repo Transactions Between Banks/Sub-Registries
a. A Bank purchasing SBI-Repo for its own account or for the account of
a non-Bank customer, or a Sub-Registry purchasing SBI-Repo for the
account of a non-Bank customer shall convey the SPPP-Repo using
form BER-14 according to the specimen in Appendix 22, during the
hours of 08.00 through 15.00 hours local time, to:
1) the Money Market Transaction Settlement Division, with the SPPP-
Repo submitted by:
a) the head office of the Bank for a Bank having its head office in
the working area of the Bank Indonesia Head Office;
b) a branch office in the working area of the Bank Indonesia Head
Office, for a bank having its head office in the working area of
a Bank Indonesia Regional Office.
2) Money Market Transaction Settlement Division through the local
Bank Indonesia Regional Office, for a Bank having its head office
in the working area of a Bank Indonesia Regional Office and not
having a branch office in the working area of the Bank Indonesia
Head Office.
b. In the event that a SBI-Repo transaction is conducted for the account of
a non-Bank customer, the SPPP-Repo conveyed by the Bank shall
designate the Sub-Registry administering the SBIs owned by the
customer for purposes of Securities Settlement.
c. In the event that the SPPP-Repo form as referred to in the above letter
a is submitted by a Sub-Registry, the SPPP-Repo form shall be
accompanied ...
21
accompanied by confirmation from the Bank designated to execute
payment by affixing the signature of the authorized Bank officer and
the seal of the Bank on the SPPP-Repo form as approval for debit from
the Demand Deposit Account of the Bank concerned.
d. A Bank selling SBI-Repo for its own account or for the account of a
non-Bank customer, or a Sub-Registry selling SBI-Repo for the
account of a non-Bank customer, shall submit the SPPR-Repo using
form BER-13 according to the specimen in Appendix 21 during the
hours of 08.00 through 15.00 hours local time to:
1) the Central Registry, with the SPPR-Repo form submitted by:
a) the head office of the Bank for a Bank having its head office in
the working area of the Bank Indonesia Head Office;
b) a branch office in the working area of the Bank Indonesia Head
Office, for a bank having its head office in the working area of
a Bank Indonesia Regional Office.
2) the Central Registry through the local Bank Indonesia Regional
Office, for a Bank having its head office in the working area of the
Bank Indonesia Regional Office and not having a branch office in
the working area of the Bank Indonesia Head Office.
e. In the event that an SBI-Repo transaction is conducted for the account
of a non-Bank customer, the SPPR-Repo conveyed by the Bank shall
be accompanied by confirmation from the Sub-Registry administering
the SBI owned by the customer for debiting the SBI Trading Account
of the customer.
f. In the event that the data in the SPPP-Repo form as referred to in letter
a and the SPPR-Repo form as referred to in letter c is incomplete or
contains errors, Bank Indonesia shall inform the Bank or Sub-Registry
by telephone or facsimile, requesting the missing information to be
added ...
22
added and/or corrections to be made and the form thereafter to be
resubmitted no later than 16.00 hours local time on the same day.
g. Securities Settlement shall be conducted by debiting the SBI
Administration Account of the Bank or Sub-Registry selling the SBI-
Repo and crediting the SBI Administration Account of the Bank or
Sub-Registry purchasing the SBI-Repo, each in the nominal value of
the SBI-Repo.
h. Fund Settlement shall be conducted by debiting the Demand Deposit
Account of the Bank or Bank appointed by the Sub-Registry
purchasing the SBI-Repo and crediting the Demand Deposit Account
of the Bank or Bank appointed by the Sub-Registry selling the SBI-
Repo, each in the nominal value of the SBI-Repo.
i. In the event of insufficient balance in the SBI Trading Account of the
Bank or Sub-Registry selling the SBI-Repo for conducting Securities
Settlement by 17.00 hours Jakarta Time, the SBI-Repo transaction shall
be declared void.
j. In the event of insufficient balance in the Demand Deposit Account of
the Bank purchasing the SBIs or of the Bank appointed by the Sub-
Registry to conduct Fund Settlement by 17.00 hours Jakarta Time, the
SBI-Repo transaction shall be declared void.
k. In the event that an SBI-Repo transaction is declared void, the Bank or
Sub-Registry may collect the SPPR-Repo and SPPP-Repo forms
stamped “VOID” from the Money Market Transaction Settlement
Division or the local Bank Indonesia Regional Office 1 (one) working
day after the day of cancellation of the SBI-Repo transaction.
l. Upon maturity of SBI-Repo:
1) Fund Settlement shall be conducted by debiting the Demand
Deposit Account of the Bank or Bank appointed by the Sub-
Registry selling the SBI-Repo and crediting the Demand Deposit
Account ...
23
Account of the Bank or Bank appointed by the Sub-Registry
purchasing the SBI-Repo, each in the nominal value of the SBI-
Repo.
2) Securities Settlement shall be conducted by debiting the SBI
Trading Account of the Bank or Sub-Registry purchasing the SBI-
Repo and crediting the SBI Trading Account of the Bank or Sub-
Registry selling the SBI-Repo, each in the nominal value of the
SBI-Repo.
3) In the event of insufficient balance in the SBI Trading Account of
the Bank or Sub-Registry purchasing the SBI-Repo and/or
insufficient balance in the Demand Deposit Account of the Bank or
the Bank appointed by the Sub-Registry selling the SBI-Repo for
redemption of the SBI-Repo by 17.00 hours Jakarta Time, the
transaction settlement at maturity of the SBI-Repo shall be declared
void and the SBI-Repo transaction shall be declared an Outright
transaction and final.
m. In the event that repurchase of SBI-Repo is conducted prior to
maturity, the following provisions shall apply:
1) There is an agreement between the seller of the SBI-Repo and the
buyer of the SBI-Repo.
2) The seller of the SBI-Repo and the buyer of the SBI-Repo each
submit an application for SBI transaction settlement in respect of
the repurchase of the SBI-Repo prior to maturity, using form BER-
15 and form BER-16 respectively according to the specimens in
Appendices 23 and 24, during the hours of 08.00 through 16.00
hours local time, to:
a) the Central Registry, in the event that the applicant is a Bank
having its head office in the working area of the Bank Indonesia
Head Office or a Bank having its head office in the working
area ...
24
area of a Bank Indonesia Regional Office and having a branch
office in the working area of the Bank Indonesia Head Office,
or is a Sub-Registry;
b) the Central Registry through the local Bank Indonesia Regional
Office, in the event that the applicant is a Bank having its head
office in the working area of a Bank Indonesia Regional Office
but does not have a branch office in the working area of the
Bank Indonesia Head Office.
3) Fund Settlement shall be conducted by debiting the Demand
Deposit Account of the Bank or Bank appointed by the Sub-
Registry selling the SBI-Repo and crediting the Demand Deposit
Account of the Bank or Bank appointed by the Sub-Registry
purchasing the SBI-Repo, each in the amount of payment for the
SBI-Repo prior to maturity.
4) Securities Settlement shall be conducted by debiting the SBI
Trading Account held by the Bank or Sub-Registry purchasing the
SBI-Repo and crediting the SBI Trading Account held by the Bank
or Sub-Registry selling the SBI-Repo, each in the nominal value of
the SBI-Repo.
5) In the event of insufficient balance in an SBI Administration
Account held by a Bank or Sub-Registry purchasing SBI-Repo
and/or insufficient balance in the Demand Deposit Account of a
Bank or Bank appointed by Sub-Registry selling SBI-Repo for
redemption of the SBI-Repo by 17.00 hours Jakarta Time, the
settlement of the SBI-Repo transaction prior to maturity shall be
declared void.
B. Procedure ...
25
B. Procedure for Settlement of SBI-Outright Transactions
1. SBI-Outright Transactions conducted DVP
a. A Bank purchasing SBI-Outright for its own account or for the account
of a non-Bank customer, or a Sub-Registry purchasing SBI-Outright
for the account of a non-Bank customer shall submit the SPPP-DVP
using form BER-11 according to the specimen in Appendix 19 during
the hours of 08.00 through 15.00 hours local time to:
1) the Money Market Transaction Settlement Division, with the form
submitted by:
a) the head office of the Bank, for a Bank having its head office in
the working area of the Bank Indonesia Head Office;
b) a branch office in the working area of the Bank Indonesia Head
Office for a bank having its head office in the working area of a
Bank Indonesia Regional Office.
2) the Money Market Transaction Settlement Division through the
local Bank Indonesia Regional Office, for a Bank having its head
office in the working area of a Bank Indonesia Regional Office and
not having a branch office in the working area of the Bank
Indonesia Head Office.
b. In the event that an SBI-Outright transaction is conducted for the
account of a non-Bank customer, the SPPP-Outright submitted by the
Bank shall designate a Sub-Registry to administer the SBIs held by the
customer for purposes of Securities Settlement.
c. In the event that the SPPP-DVP form as referred to in the above letter a
is submitted by a Sub-Registry, the SPPP-DVP form shall be
accompanied by confirmation from the Bank designated to execute
payment by affixing the signature of the authorized Bank officer and
the seal of the Bank on the SPPP-DVP form as approval for debit from
the Demand Deposit Account of the Bank concerned.
d. A Bank ...
26
d. A Bank selling SBI-Outright for its own account or for the account of a
non-Bank customer, or a Sub-Registry selling SBI-Outright for the
account of a non-Bank customer, shall submit the SPPR-DVP using
form BER-10 according to the specimen in Appendix 18 to the Central
Registry, during the hours of 08.00 through 15.00 hours local time, by
means of submission as stipulated in the above letter a.
e. In the event that an SBI-Outright transaction is conducted for the
account of a non-Bank customer, the SPPR-DVP submitted by the
Bank shall be accompanied by confirmation from the Sub-Registry
administering the SBI held by the customer for debiting of the SBI
Trading Account of the customer.
f. In the event that the data on the SPPP-DVP form as referred to in letter
a and the SPPR-DVP form as referred to in letter c is incomplete
and/or contains errors, Bank Indonesia shall inform the Bank or Sub-
Registry of the matter by telephone or facsimile, requesting the missing
data to be added and/or correction to be made and thereafter the form
to be resubmitted no later than 16.00 hours local time on the same day.
g. Securities Settlement shall be conducted by debiting the SBI Trading
Account of the Bank or Sub-Registry selling the SBI-Outright and
crediting the SBI Trading Account of the Bank or Sub-Registry
purchasing the SBI-Outright, each in the nominal value of the SBI-
Outright.
h. Fund Settlement shall be conducted by debiting the Demand Deposit
Account of the Bank or Bank appointed by the Sub-Registry
purchasing the SBI-Outright and crediting the Demand Deposit
Account of the Bank or Bank appointed by the Sub-Registry selling the
SBI-Outright, each in the SBI-Outright transaction value.
i. In the event of insufficient balance in the SBI Trading Account of a
Bank or Sub-Registry selling SBI-Outright for conducting Securities
Settlement ...
27
Settlement by 17.00 hours Jakarta Time, the SBI-Outright transaction
shall be declared void.
j. In the event of insufficient balance in the Demand Deposit Account of
the Bank purchasing SBIs or the Bank appointed by the Sub-Registry
for conducting Fund Settlement by 17.00 hours Jakarta Time, the SBI-
Outright transaction shall be declared void.
k. In the event that an SBI-Outright transaction is declared void, the Bank
and/or Sub-Registry may collect the SPPR-DVP or SPPP-DVP form
stamped “VOID” from the Money Market Transaction Settlement
Division or the local Bank Indonesia Regional Office at 1 (one)
working day after the day of cancellation of the SBI transaction, in
accordance with the provisions referred to in letter a.
2. SBI-Outright Transactions conducted FoP
a. A Bank selling SBI-Outright for its own account or for the account of a
non-Bank customer, or a Sub-Registry selling SBI-Outright for the
account of a non-Bank customer, shall submit the SPPR-FoP using
form BER-12 according to the specimen in Appendix 20 during the
hours of 08.00 through 15.00 hours local time to:
1) the Central Registry, with the form submitted by:
a) the head office of a Bank having its head office in the working
area of the Bank Indonesia Head Office;
b) a branch office in the working area of the Bank Indonesia Head
Office, for a bank having its head office in the working area of
a Bank Indonesia Regional Office.
2) the Central Registry through the local Bank Indonesia Regional
Office, for a Bank having its head office in the working area of a
Bank Indonesia Regional Office and not having a branch office in
the working area of the Bank Indonesia Head Office.
b. In the event ...
28
b. In the event that the data in the SPPR-FoP form as referred to in letter a
is incomplete or contains errors, Bank Indonesia shall inform the Bank
or Sub-Registry of the matter by telephone or facsimile, requesting the
missing information to be added and/or corrections to be made, and
thereafter for the form to be resubmitted on the same day no later than
16.00 hours local time.
c. Securities Settlement shall be conducted by debiting the SBI Trading
Account of the Bank or Sub-Registry selling the SBIs and crediting the
SBI Trading Account of the Bank or Sub-Registry purchasing the SBI-
Outright, each in the nominal value of the SBI-Outright.
d. In the event of insufficient balance in the SBI Trading Account of the
Bank or Sub-Registry selling the SBI-Outright for conducting
Securities Settlement by 17.00 hours Jakarta Time, the SBI-Outright
transaction shall be declared void.
e. In the event that an SBI transaction is declared void, the Bank and/or
Sub-Registry may collect the SPPR-FoP form stamped “VOID” at the
earliest opportunity from the Money Market Transaction Settlement
Division or the local Bank Indonesia Regional Office at 1 (one)
working day after the cancellation of the SBI transaction, in accordance
with the provisions referred to in letter a.
VIII. PROCEDURE FOR REGISTRATION OF SBIs SECURED AS COLLATERAL
A. Principles Governing SBIs Secured as Collateral
1. An SBI holder registered at the Central Registry or a Sub-Registry may
secure any SBIs held as collateral.
2. During the period of securing as collateral, SBIs registered in the
Collateral Account at the Central Registry and Sub-Registry may not be
secured as collateral and traded for any subsequent time.
3. The total ...
29
3. The total SBIs that may be secured as collateral may not exceed the
balance of SBIs in the SBI Trading Account.
4. At the expiration of the SBI collateral period, the SBIs concerned shall
have a remaining maturity of no less than 3 (three) working days.
B. Procedure for Registration of SBI Collateral at the Central Registry
1. Collateral Placed by Bank
a. The Bank shall submit an Application for Issuance of Statement of
Securities Secured as Collateral (PP-SKSD) to the Central Registry,
using form BER-08 according to the specimen in Appendix 16, during
the hours of 08.00 through 17.00 hours Jakarta Time.
b. In the event that the form is incomplete or contains errors, the Central
Registry shall inform the Bank, requesting the form to be collected for
missing information to be added or corrections to be made and the
form thereafter to be resubmitted to the Central Registry on the same
day no later than 17.00 hours Jakarta Time.
c. Based on the PP-SKSD, on the same day the Central Registry shall:
1) transfer the SBIs from the Trading Account to the Collateral
Account;
2) issue the SKSD using form BER-09 according to the specimen in
Appendix 17.
d. The SKSD as referred to in item c.2) shall be collected on the same day
from the Central Registry. In the case of a Bank having its head office
in the working area of a Bank Indonesia Regional Office and not
having a branch office in the working area of the Bank Indonesia Head
Office, the SKSD shall be conveyed by the Central Registry to the head
office of the Bank through the local Bank Indonesia Regional Office,
preceded by facsimile transmission of the SKSD.
e. On the next ...
30
e. On the next working day after the expiration of the collateral period,
the Central Registry shall automatically transfer the SBIs from the
Collateral Account to the Trading Account.
f. A Bank providing collateral or other party receiving collateral may
submit an application to the Central Registry for relinquishment of SBI
collateral prior to the expiration of the collateral period during the
hours of 08.00 through 17.00 hours Jakarta Time, subject to the
following requirements:
1) a party providing SBI collateral shall submit an application for
relinquishment of SBI collateral attaching the original SKSD; or
2) a party receiving SBI collateral shall submit an application for
relinquishment of SBI collateral and transfer of SBIs in favor of the
party receiving the collateral, attaching the original SKSD, an
Application for Transfer of Securities Registration FoP (SPPR-
FoP) from the party providing the collateral and power of attorney
signed by both parties for transfer of the SBI from the party
providing collateral to the party receiving collateral.
g. Based on the application for relinquishment of SBI collateral as
referred to in item f, the Central Registry shall transfer the SBI from
the Collateral Account to the Trading Account.
2. Collateral Placed by Customer of Sub-Registry
a. Based on the SBI collateral report as referred to in item C.3 hereunder,
on the same day the Central Registry shall transfer the SBIs held by the
Sub-Registry from the Trading Account to the Collateral Account.
b. At one working day after expiration of the collateral period, the Central
Registry shall automatically transfer the SBIs secured as collateral
from the Collateral Account to the Trading Account.
c. In the event of relinquishment of collateral prior to the expiration of the
collateral period, on the same day the Central Registry shall transfer
the SBIs ...
31
the SBIs secured as collateral from the Collateral Account to the
Trading Account based on the report of relinquishing of collateral as
referred to in item C.6 below.
C. Procedure for Registration of SBIs Secured as Collateral in Sub-Registry
1. The customer holding SBIs at a Sub-Registry shall submit the PP-SKSD to
the Sub-Registry.
2. On the basis of the PP-SKSD, on the same day the Sub-Registry shall:
a. transfer the SBIs from the Trading Account to the Collateral Account;
b. issue the SKSD using form BER-09 according to the specimen in
Appendix 17.
3. On the same working day, the Sub-Registry shall convey the SBI collateral
report to the Central Registry no later than 16.30 hours Jakarta Time.
4. Upon expiration of the collateral period, the Sub-Registry shall
automatically transfer the SBIs from the Collateral Account to the Trading
Account.
5. The Sub-Registry customer providing the collateral or other party
receiving collateral may submit an application to the Sub-Registry for
relinquishment of SBI collateral prior to the expiration of the collateral
period, subject to the following requirements:
a. the party providing SBI collateral shall submit an application for
relinquishment of SBI collateral attaching the original SKSD; or
b. the party receiving SBI collateral shall submit an application for
relinquishment of SBI collateral and transfer of ownership of the SBIs,
attaching the original SKSD, the SPPR-FoP from the party providing
collateral, and power of attorney signed by both parties for transfer of
ownership of SBIs from the party providing collateral to the party
receiving collateral.
6. On the same ...
32
6. On the same working day, the Sub-Registry shall be required to inform the
Central Registry of the report of relinquishment of collateral prior to
expiration of the collateral period referred to in the above number 4 no
later than 17.00 hours Jakarta Time.
IX. SBI REDEMPTION PROCEDURE
1. Bank Indonesia shall redeem SBIs reaching maturity in the nominal value of
the SBIs at the maturity date of the SBIs.
2. Payment of the nominal value of SBIs shall be executed by Bank Indonesia
based on the end of day balance of SBI Trading Accounts at the Central
Registry at 3 (three) days prior to maturity of SBIs (T-3).
3. The Central Registry shall issue a letter of confirmation of SBI maturity to
Banks and Sub-Registries listed in SBI Trading Accounts at the end of T-3,
using form BER-17 according to the specimen in Appendix 25, which may
thereafter be collected at the Central Registry at the beginning of the following
working day (T-2).
4. In the event of a discrepancy in position of the SBI Trading Account arising
between the Central Registry and a Bank or Sub-Registry, the discrepancy
shall be reported to the Central Registry using form BER-06 according to the
specimen in Appendix 15 no later than 16.00 hours Jakarta Time 2 (two)
working days prior to maturity of the SBIs (T-2).
5. The Central Registry shall respond to a report as referred to in number 4 at 1
(one) working day prior to the maturity of the SBI (T-1) and this response
shall be deemed final.
6. If after the period referred to in number 4, the Bank and Sub-Registry do not
report any discrepancy in the position of the SBI Trading Account, the
calculation of the SBI position as referred to in number 3 shall be deemed
final.
7. The Central ...
33
7. The Central Registry shall use the SBI position as referred to in number 3 or
number 6 as the basis for redemption of SBIs, unless other evidence
subsequently becomes available that is acceptable to the Central Registry.
8. Redemption of SBIs at nominal value shall take place at maturity date (T-0),
subject to the following provisions:
a. SBIs held by Banks shall be redeemed by crediting the Demand Deposit
Account of the Bank holding the SBI, or;
b. SBIs held by customers (non-Bank) shall be redeemed by crediting the
Demand Deposit Account of the Bank supervising the Sub-Registry
concerned. Following this, the Sub-Registry shall pay the proceeds of
redemption of the SBI to the SBI holder.
9. Upon maturity of SBIs, the Trading Accounts for maturing SBIs held by
Banks and Sub-Registries shall be automatically debited at nominal value
according to the position in the above number 7.
10. Sub-Registries, through designated Banks, are required to execute payment of
nominal value of SBIs reaching maturity on the same day (T-0) to customers
registered in the Sub-Registry.
X. MECHANISM FOR IMPOSITION OF SANCTIONS
A. Imposition of Sanctions for Issuance of SBIs on Primary Market
1. In the event that an SBI Bidder does not comply with the procedure for
SBI auction transactions as referred to in Roman numeral II.C, the SBI Bid
shall be declared void.
2. In the event that a bid is declared void as referred to in the above number
1, the Bank or Broker shall be subject to sanctions as follows:
a. written warning; and
b. suspension ...
34
b. suspension from participation in OMO activities for 5 (five) working
days in the event that the Bank concerned withdraws a bid for the third
time in a period of 6 (six) months.
3. In the event that an SBI purchase transaction on the primary market is
declared void by reason of insufficient balance in the Demand Deposit
Account of the Bank as referred to in Roman numeral VI.3, the Bank
concerned shall be subject to sanctions as follows:
a. written warning; and
b. penalty of 0.1% (zero point one percent) of the nominal value of the
cancelled SBI transaction, or no more than Rp 1,000,000,000 (one
billion Rupiahs), and
c. suspension from participation in OMO activities for 5 (five) working
days in the event that the SBI purchase transaction concerned is
declared void for the third time in a period of 6 (six) months.
4. The penalty referred to in number 3 shall be imposed by debiting the
Demand Deposit Account of the Bank concerned.
B. Imposition of Sanctions on SBI-Repo Transactions with Bank Indonesia
1. In the event that an SBI-Repo Bidder does not comply with the procedure
for SBI-Repo transactions as referred to in Roman numeral III.A.2, the
SBI-Repo Bid shall be declared void.
2. In the event that an SBI-Repo transaction is declared void as referred to in
the above number 1, the Bank concerned shall be subject to sanctions as
follows:
a. written warning; and
b. suspension from participation in OMO activities for 5 (five) working
days in the event that the Bank concerned withdraws a bid for the third
time in a period of 6 (six) months.
3. In respect ...
35
3. In respect of cancellation of any SBI-Repo transaction by reason of
insufficient balance in the SBI Trading Account as referred to in Roman
numeral VII item A.l.b, the Bank shall be subject to sanctions as follows:
a. written warning; and
b. penalty of 0.1% (zero point one percent) of the nominal value of the
SBI-Repo transaction, or no more than Rp 1,000,000,000 (one billion
Rupiahs), and
c. suspension from participation in OMO activities for 5 (five) working
days in the event that Bank concerned has been subject to sanctions as
referred to in letters a and b for 3 (three) times in a period of 6 (six)
months.
4. In respect of cancellation of any transaction with Bank Indonesia for
redemption of SBI-Repo transaction by reason of insufficient balance in
the Demand Deposit Account of the Bank as referred to in Roman numeral
VII item A.l.e, the Bank shall be subject to sanctions as follows:
a. written warning; and
b. penalty of 0.1% (zero point one percent) of the nominal value of the
SBI-Repo transaction, or no more than Rp 1,000,000,000 (one billion
Rupiahs), and
c. suspension from participation in OMO activities for 5 (five) working
days in the event that the Bank concerned has been subject to sanctions
a and b for 3 (three) times in a period of 6 (six) months.
5. The penalties referred to in items 3 and 4 shall be imposed by debiting of
the Demand Deposit Account of the Bank concerned at 1 (one) working
day after the cancellation of transaction.
C. Imposition ...
36
C. Imposition of Sanctions on SBI-Repo Transactions Between Banks/Sub-
Registries
1. In respect of the cancellation of any SBI-Repo transaction between
Banks/Sub-Registries by reason of insufficient balance in the SBI Trading
Account of the Bank/Sub-Registry and/or the Demand Deposit Account of
the Bank/Bank appointed by the Sub-Registry as referred to in Roman
numeral VII item A.2.g, the Bank/Sub-Registry concerned shall be subject
to a penalty of Rp 1,000,000 (one million Rupiahs) at 1 (one) working day
thereafter, imposed by debiting the Demand Deposit Account of the
Bank/Bank supervising the Sub-Registry concerned.
2. In respect of the cancellation of any transaction for redemption of SBI-
Repo between Banks/Sub-Registries by reason of insufficient balance in
the SBI Trading Account of the Bank/Sub-Registry and/or the Demand
Deposit Account of the Bank/Bank appointed by the Sub-Registry as
referred to in Roman numeral VII item A.2.l.3) and Roman numeral VII
item A.2.m.5), the Bank/Sub-Registry concerned shall be subject to a
penalty of Rp 1,000,000 (one million Rupiahs) at 1 (one) working day
thereafter, imposed by debiting the Demand Deposit Account of the
Bank/Bank supervising the Sub-Registry concerned.
D. Imposition of Sanctions on SBI-Outright Transactions Between Banks/Sub-
Registries Conducted on DVP Basis
In respect of the cancellation of any SBI-Outright transaction conducted on
DVP basis by reason of insufficient balance in the SBI Trading Account of the
Bank/Sub-Registry and/or Demand Deposit Account of the Bank/Bank
appointed by the Sub-Registry as referred to in Roman numeral VII items B.1.i
and j., the Bank/Sub-Registry concerned shall be subject to a penalty of
Rp 1,000,000 (one million Rupiahs) at 1 (one) working day thereafter,
imposed by debiting the Demand Deposit Account of the Bank/Bank
supervising the Sub-Registry concerned.
E. Imposition ...
37
E. Imposition of Sanctions on SBI-Outright Transactions Between Banks/Sub-
Registries Conducted on FoP Basis
In respect of the cancellation of any SBI-Outright transaction conducted FoP
by reason of insufficient balance in the SBI Trading Account of the Bank/Sub-
Registry as referred to in roman numeral VII item B.2.d, the Bank/Sub-
Registry concerned shall be subject to a penalty of Rp 1,000,000 (one million
Rupiahs) at 1 (one) working day thereafter, imposed by debiting the Demand
Deposit Account of the Bank/Bank supervising the Sub-Registry concerned.
XI. CONTINGENCY PLAN
In the event of any disruption to systems linked to the ABS facility caused by
circumstances outside the control of Bank Indonesia, transactions shall be
conducted according to the procedures set forth in the ABS SOP in Appendix 7.
XII. CONDITIONS FOR WHICH BANK INDONESIA SHALL NOT BE HELD
LIABLE
Bank Indonesia in its capacity as Central Registry shall not be held liable for any
failure of transaction and/or losses that may arise as a result of matters including
but not limited to the following:
1. Any delay in information or inaccuracy of data in respect of authorized dealers
received by Bank Indonesia from a Bank or Sub-Registry for execution of
orders for settlement of SBI transactions.
2. Natural disaster, fire, flood, breakdown in the national/regional electrical
power system, typhoon, strike, embargo, war, invasion, riots, revolution,
terrorism, and various other natural and social disturbances that may disrupt
the operation of SBI transactions, settlement of SBI transactions, and
settlement of administration.
The provisions in this Circular Letter shall come into force on November 25,
2002.
For the public ...
38
For the public to be informed, it is ordered that this Circular Letter be promulgated
in the State Gazette of the Republic of Indonesia.
Kindly be informed.
BANK INDONESIA,
(signed)
TARMIDEN SITORUS DIRECTOR OF MONETARY MANAGEMENT