Bank Indonesia Circular Letter Number 10/21/DPM - Operation of the Bank Indonesia - Scripless Securities Settlement System - Bank Sentral Republik Indonesia
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October 01, 2020
Summary Bank Indonesia Laws

Regulation : Bank Indonesia Circular Letter Number 10/21/DPM dated May 23, 2008, concerning Operation of the Bank Indonesia - Scripless Securities Settlement System
Effective date : May 23, 2008

Summary :

  1. The Operator of the Bank Indonesia - Scripless Securities Settlement System (BI-SSSS) is Bank Indonesia, c.q. Directorate of Monetary Management, which has duties and authorities to manage BI-SSSS operations, Transactions with Bank Indonesia, and administration activities comprising implementation of settlements, registration of ownership, and payments.
  2. The Operator’s activities in the administration are as follows.
    1. To debit Demand Deposit Account or Securities Account of Participant or Demand Deposit Account of Participant which becomes Securities Issuer in Securities transaction settlement for Participant, coupon (interest) or yield payment, and Securities/OMO Instrument principal/nominal value redemption to Participant holding Securities;
    2. To impose sanction of financial penalty on OMO Participant which fails to conduct settlement;
    3. To register Securities/OMO Instrument ownership and administer Funding Facility collateral in Securities Account of Participant;
  3. The Operator stipulates BI-SSSS operations every working day which shall be applicable in normal condition and may be changed by the Operator. Any change of operating hours shall be notified to all Participants through the BI-SSSS (administrative messages) and/or other information facilities.
  4. Any Participant or Paying Bank may request an extension of operating hours by letter to the BI-RTGS System Operator. Such extension of operating hours shall be charged a fee.
  5. Fees for the application of the BI-SSSS comprise fee for Transaction with Bank Indonesia, settlement fee, fee for information request to the Operator, and fee for administrative messages and application of Guest Bank Facilities. The amounts of fees shall be based on the time of transaction or settlement submission (normal hours or peak hours).
  6. The Operator may exempt Participants experiencing a state of emergency from the fee for the application of Guest Bank Facilities.
  7. A prospective Participant which has fulfilled the criteria of Participant type is required to fulfill requirements before becoming a Participant, namely to have facilities with the technical specifications as required, to have fulfilled requirements of the type of Participant, and, for a Participant of no BI-RTGS System Participant, to have designated a Paying Bank.
  8. A Participant of no BI-RTGS System Participant has to designate a Paying Bank in the charging of BI-SSSS fees, Fund Settlement on Securities transaction, and/or receiving of payment of coupon (interest) or yield and principal/nominal value of Securities upon maturity. The Paying Bank designated to conduct Fund Settlement on Securities transaction shall manage Fund Settlement limit data (settlement limit) for the Participant which designates.
  9. The designation of Paying Bank by Participant shall be conducted under the following stipulations.
    1. Rupiah and Foreign Exchange Money Market Brokerage Company and Securities Company shall designate 1 (one) Paying Bank for the charging of BI-SSSS fees;
    2. Sub-Registry shall designate 1 (one) Paying Bank for the charging of BI-SSSS fees and no more than 9 (nine) other Paying Banks for Fund Settlement on Securities transactions.
  10. Procedure of application to become Participant
    1. A prospective Participant shall submit an application letter to the Operator, enclosed with supporting documents as required by Bank Indonesia. If the head office of the prospective Participant is located outside the working area of Bank Indonesia Head Office, a copy of the application letter shall also be forwarded to local Bank Indonesia Regional Office. The Operator shall notify the prospective Participant of approval or disapproval on the application by letter.
    2. Any prospective Participant which has been approved as a Participant shall submit the Agreement on the Application of BI-SSSS between Operator and Participant, which has been signed up by authorized official, to the Operator in duplicate within 1 (one) month as of the date of the letter of approval.
    3. The Operator shall install BI-SSSS applications and provide the Manual for the Application of BI-SSSS and trainings for Participant.
  11. Any Participant is required to fulfill its obligations as a Participant by maintaining BI-SSSS system and security, fulfilling administration procedure, providing written procedure and/or back-up system under the Guidelines for BI-SSSS Operations.
  12. The membership status in the BI-SSSS may be changed by request of the institution authorized in supervision on Participant, by request of Participant, and by the Operator.
  13. A change of membership status in the BI-RTGS System shall bring about a same change of membership status in the BI-SSSS. However, a change of membership status in the BI-SSSS shall not bring about any change of membership status in the BI-RTGS System.
  14. If the membership status in the BI-SSSS is active but the in the BI-RTGS System is suspend, the Participant may not settle Securities purchasing by DVP.
  15. The Operator shall conduct supervision on the fulfillment of obligations by any Participant either by direct or indirect supervision. Based on the supervision results, the Operator may impose sanctions on the Participant.
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