Bank Indonesia Regulation Number 10/11/PBI - Bank Indonesia Sharia Certificate - Bank Sentral Republik Indonesia
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October 01, 2020
Summary Bank Indonesia Laws

Regulation : Bank Indonesia Regulation Number 10/11/PBI dated March 31, 2008, concerning Bank Indonesia Sharia Certificate
Effective date : March 31, 2008

Summary :

  1. Definition
    Bank Indonesia Sharia Certificate (SBIS) is a short-term securities denominated in the rupiah issued by Bank Indonesia based on Sharia Principles.
  2. SBIS Characteristics
    • uses ju'alah*) agreement
    • in unit price of Rp1,000,000.00 (one million rupiah);
    • with a minimum tenor of 1 (one) month and a maximum tenor of 12 (twelve) months;
    • issued without paper (scripless);
    • may be collateralized to Bank Indonesia; and
    • non-tradable in secondary markets.
    *) Based on the fatwa of the National Sharia Council – Indonesian Ulema Assembly, SBIS may also be issued under mudharabah, musyarakah, wadiah, qardh, and wakalah agreements
  3. SBIS Issuance Mechanism
    SBIS is issued through an auction mechanism.
  4. Parties Eligible to Participate in SBIS Auction
    • Sharia Commercial Banks (BUS), Sharia Divisions (UUS), or brokers acting for and on behalf of BUS/UUS.
    • Any BUS or UUS, either as a direct or an indirect participant, is required to fulfill the requirement of a Financing to Deposit Ratio (FDR) stipulated by Bank Indonesia.
  5. Rights
    Bank Indonesia shall extend rights on any issued SBIS.
  6. Cancellation of Auction Results and SBIS Transaction
    • SBIS auction results may be cancelled by Bank Indonesia.
    • Any SBIS transaction (SBIS auction settlement, first leg Repo SBIS settlement, or second leg Repo SBIS settlement) shall be declared cancelled if the balance in Demand Deposit Account and Securities Account of BUS or UUS with Bank Indonesia is inadequate.
  7. Repo SBIS
    • SBIS may be used as collateral in a Repo SBIS with Bank Indonesia
    • Repo SBIS is based on qard principle which is followed by rahn
    • In purpose of Repo SBIS, any BUS or UUS is required to sign up an Agreement on the Collateralization of SBIS in advance
    • Repo SBIS will be charged a Repo fee
  8. Sanctions
    Any BUS or UUS conducting SBIS transaction which is declared cancelled shall be imposed sanctions in the form of :
    • written warning; and
    • financial penalty of 1‰ (one per thousand) of the value of SBIS transaction which declared cancelled with a maximum amount of Rp1,000,000,000.00 (one billion rupiah). In addition to the abovementioned sanctions, the BUS or UUS shall also be imposed sanctions of :
    • temporary termination of participation in SBIS auction in the following week; and
    • prohibition of proposition for Repo SBIS for 5 (five) consecutive working days since the BUS or UUS is imposed the third written warning within 6 (six) months.
  9. Transitional Provisions
    1. Bank Indonesia Wadiah Certificates (SWBI) issued prior to the enactment of this Bank Indonesia Regulation shall continue to be valid and comply with provisions in Bank Indonesia Regulation Number 6/7/PBI/2004 dated February 16, 2004, concerning Bank Indonesia Wadiah Certificate up to the maturity of the certificates.
    2. By the enactment of this Bank Indonesia Regulation, Bank Indonesia Regulation Number 6/7/PBI/2004 dated February 16, 2004, concerning Bank Indonesia Wadiah Certificate shall be revoked and declared no longer valid.
  10. Concluding Provisions
    1. All terms of SWBI which have been used in prevailing Bank Indonesia provisions all this time must be read as Bank Indonesia Sharia Certificate.
    2. Implementation provisions of this Bank Indonesia Regulation shall be further stipulated in Bank Indonesia Circular Letter.
    3. This Bank Indonesia Regulation shall come into force as of March 31, 2008.
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