Bank Indonesia Circular Letter No. 10/17/DPM - Procedures of Repo Bank Indonesia Sharia Certificate Transaction with Bank Indonesia - Bank Sentral Republik Indonesia
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September 29, 2020
Summary Bank Indonesia Laws

Regulation : Bank Indonesia Circular Letter No. 10/17/DPM dated March 31, 2008, concerning Procedures of Repo Bank Indonesia Sharia Certificate Transaction with Bank Indonesia
Effective date : March 31, 2008

Summary :

  1. Repo SBIS Mechanism
    1. Bank Indonesia, c.q. DPM-BOpM, shall announce applicable Repo SBIS fee and maturity (1 working day) through the BI-SSSS and/or LHBU System before the Repo SBIS window time opens at the latest.
    2. Any BUS or UUS which has signed up the Agreement on the Collateralization of SBIS in purpose of Repo and is not being under any sanction of prohibition of proposition for Repo SBIS shall submit Repo SBIS directly through the BI-SSSS during the window time (4.00 p.m. – 5.00 p.m. western Indonesia standard time) by stating Repo SBIS nominal value and series of collateralized SBIS (with a remaining maturity of at least two working days upon Repo SBIS maturity).
    3. A fee shall be charged on any Repo SBIS with the following calculation. Repo SBIS fee = (BI rate + 300bps) x (t ÷ 360) x (Repo SBIS nominal value) where t is the number of Repo SBIS calendar days
    4. Bank Indonesia, c.q. DPM-PTPM, shall conduct Securities Settlement and Fund Settlement in purpose of Repo SBIS on the same working day as the transaction (same day settlement) by delivery versus payment and transaction by transaction mechanisms (gross to gross) through the BI-SSSS.
  2. Sanctions
    1. For any cancellation of Repo SBIS first leg and second leg settlement due to an inadequacy of balance in securities account and demand deposit account any BUS or UUS shall be imposed sanctions in the form of written warning and financial penalty of 1‰ (one per thousand) of the cancelled settlement value with a maximum amount of Rp1,000,000,000.00 (one billion rupiah) for each cancellation.
    2. If within 6 (six) months a BUS or UUS has been imposed sanctions of written warning for 3 (three) times, in addition to the abovementioned sanctions, the BUS or UUS shall also be imposed sanctions in the form of prohibition of proposition for Repo SBIS for 5 (five) consecutive working days and temporary termination to participate in SBIS auction up to the auction of the following week.
    3. The counting of 3 (three) time written warning shall also count SBIS purchase by the BUS or UUS which is declared cancelled.
  3. Concluding Provision Provisions in this Circular Letter shall come into force since March 31, 2008.
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