Highlights:

1.          In this Circular Letter, Bank Indonesia specifies in greater detail such matters as the following:

a.        Tasks performed by Bank Indonesia as Operator of the BI-RTGS System.

b.        Obligations of Participants, including both Principal Participants and Subsidiary Participants.

c.        Transactions that must be processed through the BI-RTGS System.

d.        Fees for use of the BI-RTGS System.

2.          The changes in the regulatory framework set out in this Circular Letter include the following:

a.          concept of Subsidiary Participants (length of time, requirements, transfer sending mechanism);

b.          change of participation status from Subsidiary participation to Principal Participation and vice versa; and

c.          requirement to match account name with account number for incoming transfers.

3.          The new provisions in this Circular Letter concern the operation of the BI-RTGS System Guest Bank Facility.

4.          This Circular Letter is structured as follows:

a.         Introduction

b.         Legal Basis

c.         Rules and Procedures

d.         Management of Credit Risk and Liquidity Risk

e.         Funds Used as Settlement Assets

f.          Finality of Settlement

g.         Security and Reliability of the BI-RTGS System

h.         Efficiency of BI-RTGS System Operation

i.          Participation

j.          Good Governance in the Operation of the BI-RTGS System

k.         Transitional Provisions

5.          With the enactment of this Circular Letter, Circular Letter No. 7/62/DASP dated 30 December 2005 concerning the Bank Indonesia Real Time Gross Settlement System and Circular Letter No. 4/14/DASP dated 24 September 2002 concerning Fees for Use of the Bank Indonesia Real Time Gross Settlement System are revoked and declared no longer valid.