Circular Letter of Bank Indonesia Number 10/38/DPM - the Intraday Liquidity Facility for Commercial Banks - Bank Sentral Republik Indonesia
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September 25, 2020
Summary Bank Indonesia Laws

Regulation : Circular Letter of Bank Indonesia Number 10/38/DPM - the Intraday Liquidity Facility for Commercial Banks
Effective date : 14th November 2008
Summary :
  1. Conditions for the Bank to obtain FLI:
    1. To sign an agreement for the Use of FLI and submitted the required supporting documents;
    2. To hold securities that can be repoed to Bank Indonesia in the form of SBI and/or SUN (Government Bond);
    3. Not being suspended as participant of BI-RTGS system and/or terminated as participant of clearing house; and
    4. Being an active participant of BI-SSSS.
  2. Advice for approval or rejection of FLI application shall be forwarded by Bank Indonesia to the Bank at the latest 7 (seven) working days after receipt of complete documents by Bank Indonesia.
  3. FLI is implemented by repo transaction mechanism using securities in the form of SBI and/or SUN held by the Bank and registered in the trading account with the BI-SSSS.
  4. Implementation/application of repo transaction in FLI
    1. In BI-RTGS, Bank has to transfer SBI and/or SUN from the trading account to FLI-RTGS account with the BI-SSSS at the time when the Bank requires FLI-RTGS (self assessment) during the operational hours of BI-RTGS up to the cut-off warning of the BI-RTGS system;
    2. In FLI-Kliring, bank has to transfer SBI and/or SUN from the trading account to the FLI-Kliring account at the time of when the Bank requires to fulfill the prefunding obligation at the beginning of the day prior to the commencement of Debit Clearing ;
  5. The Use of FLI-RTGS
    1. The FLI-RTGS is usable from the commencement of the BI-RTGS system up to the cut-off warning of the BI-RTGS system provided Bank has transferred SBI and/or SUN to FLI-RTGS account;
    2. FLI-Kliring is automatically implemented when balance of the Bank’s Rupiah demand deposit account with Bank Indonesia is insufficient to cover outgoing transactions in BI-RTGS system and the final result of Debit-Clearing;
  6. The Use of FLI-Kliring.
    Implemented automatically when the Rupiah demand deposit account of the Bank with Bank Indonesia has insufficient balance to fulfill the obligation to cover the result of debit clearing provided that the Bank has transferred the securities to the FLI-Kliring account.
  7. Finalization of FLI
    1. For the use of FLI, bank shall finalize FLI on the same day (T+0) up to the cut-off time of BI-RTGS system;
    2. Finalization is performed automatically by the BI-RTGS system every time there is an incoming transaction to the Bank Rupiah demand deposit account with Bank Indonesia.
  8. Bank Indonesia shall charge the use of FLI which will be calculated as follows:
    1. For the use of FLI during the first (1st ) hour, charges shall be based on the accumulation of FLI nominal value (extend) by rounding it up to 1 (one) hour.
    2. For the use of FLI after the first (1st ) hour, charge shall be calculated in accordance with the outstanding FLI nominal used by rounding it up the to the nearest minute.
  9. In the event that Bank is unable to finalize the FLI to the end of deadline (pre cut-off time of the BI-RTGS), Bank Indonesia shall apply repo transaction to the outstanding FLI value within one day.
  10. With the coming into force of this Bank Indonesia Circular Letter, the Bank Indonesia Circular Letter Number 7/34/DPM dated 3 August 2008 concerning the Intraday Liquidity Facility for Commercial Banks and the Bank Indonesia Circular Letter Number 7/46/DPM dated 27 September 2005 concerning the Amendment of Bank Indonesia Circular Letter Number 7/34/DPM are hereby revoked and declared no longer valid.
  11. Transitional Provisions
    The Bank that at the time of the coming into force of this Bank Indonesia Circular Letter has signed an Agreement on the Use of FLI and its Collateral has to replace it with the Agreement on the Use of FLI as regulated in this Bank Indonesia Circular Letter.
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