Summary of Bank Indonesia Laws
| Regulation : | Bank Indonesia Regulation No. 9/5/PBI dated March 30, 2007 concerning Sharia Interbank Money Market | | Effective date : | March 30, 2007 | |
Summary :
I. Definition
Sharia Interbank Money Market (PUAS) is a short-term financial transaction among banks conducting business based on sharia principles either in Rupiah or foreign currency.
II. Participants
- PUAS Participants comprise Sharia Banks, Sharia Divisions (UUSs), and Conventional Banks.
- Sharia Banks and UUSs may place and receive funds using PUAS Instruments stipulated by Bank Indonesia.
III. Instruments and Transactions - PUAS Instruments usable by PUAS Participants are instruments which have been stipulated as PUAS Instruments by Bank Indonesia in Bank Indonesia Circular Letters.
- Sharia Banks or UUSs intending to issue PUAS Instruments other than those stipulated are required to apply for approval to Bank Indonesia in advance.
- The application shall be enclosed with a fatwa from the National Sharia Council.
- After approving the issuance of the PUAS Instrument, Bank Indonesia shall stipulate the PUAS Instrument in a Bank Indonesia Circular Letter.
- Sharia Bank or UUS whose application has been approved may only issue the PUAS Instrument after Bank Indonesia issues its Bank Indonesia Circular Letter. Other Sharia Banks or UUSs may issue PUAS Instruments which have been stipulated in Bank Indonesia Circular Letters without any necessary application in advance.
- Procedures of application submission and approval for the issuance of PUAS Instrument shall further be stipulated in a Bank Indonesia Circular Letter.
- Stipulations concerning any PUAS Instrument issued prior to the enactment of this Bank Indonesia Regulation shall be re-regulated in a specific Bank Indonesia Circular Letter.
IV. Reporting PUAS Participants are required to report PUAS transactions to Bank Indonesia in accordance with applicable Bank Indonesia regulatory provisions.
V. Sanctions
- Any Sharia Bank or UUS violating the provisions shall be liable to administrative sanction as referred to in Article 52 Act No. 7 of 1992 in connection with Act No. 10 of 1998.
- Any PUAS Participant failing to report PUAS transaction shall be liable to sanction in accordance with Bank Indonesia regulatory provisions concerning PUAS reporting.
VI. Transitional Provisions PUAS Instrument which has been issued prior to the enactment of this Bank Indonesia Regulation, namely Certificate of Mudharabah Interbank Investment (IMA), shall continue to be valid up to its maturity.
VII. Concluding Provisions
- By the enactment of this Bank Indonesia Regulation, Bank Indonesia Regulation No. 2/8/PBI/2000 as amended by Bank Indonesia Regulation No. 7/26/PBI/2005 shall be revoked and declared no longer valid.
- This Bank Indonesia Regulation shall come into force since March 30, 2007.
