Bank Indonesia Regulation Number 10/13/PBI/2008 - Government Securities Auction and Administration - Bank Sentral Republik Indonesia
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September 30, 2020
Summary Bank Indonesia Laws

Regulation : Bank Indonesia Regulation Number 10/13/PBI/2008 - Government Securities Auction and Administration
Effective date : August 21, 2008
Summary :
  1. To assist the Government in the management of SBN Bank Indonesia shall :
    1. give suggestion in purpose of the determination of SBN issuance;
    2. act as the auction agent in SBN selling in primary market;
    3. administer SBN.
  2. As the auction agent, Bank Indonesia for and on behalf of the Government, among other things, shall :
    1. announce SBN auction plan;
    2. conduct SBN auction;
    3. submit SBN bidding results to the Minister of Finance of the Republic of Indonesia; and
    4. announce SBN auction results.
  3. In the SBN auction Bank Indonesia utilizes Bank Indonesia - Scripless Securities Settlement System (BI-SSSS) or other facilities.
  4. SBN administration includes ownership registration, clearing and settlement, and as the payment agent for interest (coupon)/yield and principal/nominal value of SBN, by BI-SSSS.
  5. SBN administration conducted by Bank Indonesia through BI-SSSS includes administration of SBN issuance transaction in primary market and administration of SBN transaction in secondary market.
  6. SBN ownership registration is conducted by book entry in BI-SSSS and this ownership registration constitutes a legal evidence of ownership.
  7. Bank Indonesia conducts settlement of SBN issuance transaction in primary market either through auction or non-auction. Bank Indonesia also conducts settlement of SBN transactions in secondary market, namely settlement of SBN transactions between market participants and the Government and settlement of SBN transactions among market participants.
  8. SBN transaction settlement either in primary market or secondary market is conducted under Delivery Versus Payment (DVP) or Free of Payment (FoP) principles.
  9. Bank for and on its own behalf and paying Bank for and on behalf of other parties are required to provide adequate fund in rupiah demand deposit account with Bank Indonesia for SBN transaction settlement by market participants in primary market and secondary market.
  10. Bank for and on its own behalf and Sub-Registry for and on behalf of other parties are required to provide adequate SBN in securities account with Bank Indonesia for SBN transaction settlement by SBN transaction participants in secondary market.
  11. Bank Indonesia pays :
    1. interest (coupon)/yield;
    2. SBN principal/nominal value on maturity; and/or
    3. SBN principal/nominal value before maturity date; as long as an adequate fund is provided in rupiah demand deposit account of the Government with Bank Indonesia.
  12. Bank Indonesia imposes charges for :
    1. SBN auction on SBN Auction Participants; and
    2. SBN administration on SBN account holder with Bank Indonesia.
  13. Bank Indonesia Regulation Number 9/3/PBI/2007 concerning Government Securities Auction and Administration has been revoked and declared no longer valid. Furthermore, implementation provisions of Bank Indonesia Regulation Number 9/3/PBI/2007 concerning Government Securities Auction and Administration, as long as not amended and not in contrary with this Bank Indonesia Regulation, is declared persistently valid.
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