Standing Facilities - Bank Sentral Republik Indonesia
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May 27, 2017
Monetary Operations :Standing Facilities

Standing facilities are parts of monetary operation which function to limit the volatility of O/N interbank rates.

As with open market operations, standing facilities are divided into two categories:

  1. Provision of Rupiah funds to bank (lending facility): the facility for banks experiencing liquidity problems by using its SBI and/or SBN as an underlying for the repo transaction with Bank Indonesia.
  2. Placement of Rupiah funds in Bank Indonesia by banks (depos​it facility): the facility for banks with excess liquidity by placing its own funds to Bank Indonesia.

As stipulated in the Bank Indonesia Law, monetary operations may also be conducted using sharia-compliant mechanisms, as shown in the boxes with green shading.

 

Instrumen Standing Facilities

Instruments and descriptions

Deposit Facilities

Lending Facilities

Deposit Facility

Deposit Facility – FASBIS

Lending Facility

Financing Facility

Liquidity impact

Reducing liquidity

Expanding liquidity

Frequency of transactions

Regular daily transactions

Regular daily transactions

Tenor

Overnight

Overnight

Minimum nominal bid

Rp1,000m

-

Nominal multiples

Rp100m

-

Transaction mechanism

FRT

FRT

Settlement

T+0

T+0

Interest rates

BI Rate – 175 bps

BI Rate + 25 bps

Counterparties

Banks

Banks

Notes:
  • Before 7 July 2010, Deposit Facility called FASBI
  • Before 7 July 2010, Lending Facility called Repo O/N
  • FASBIS: Bank Indonesia Islamic Deposit Facility
  • Financing Facility: Lending Facility on Sharia based
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