| Effective |
: |
27 August 2013 |
1.
This Amendment of Bank Indonesia Circular Letter among
others includes:
a. Additional
transaction mechanism of Bank Indonesia Certificates of Deposits (SDBI);
b. Additional
regulation on limitation of SDBI transactions in secondary market;
c. Additional
regulation on sanction imposition for violation of SDBI transaction limitation
in secondary market;
d.
Improvement of transaction period of foreign currency
Term Deposit, time limit of foreign currency Term Deposit settlement and
additional regulation that swap transaction is considered as a pass on Bank
derivative transaction with Bank related parties.
2. Issuance
of SDBI
a) SDBI is
securities in rupiah currency issued by Bank Indonesia as an acknowledgement of
short term debts that can be traded only inter banks.
b) Issued
through auction mechanisms with fixed rate tender or variable rate tender that can be conducted on business days determined
by Bank Indonesia, between 08.00 am to 04.00 pm.
c) OPT
participants may submit bids through BI-SSSS directly or through Intermediary Agencies.
d) Bank
Indonesia will announce result of auction winner through BI-SSSS, LHBU System
and/or other facilities both individually to auction winner and globally to all
auction participants.
e) Settlement
shall be conducted no later than T+1, in which auction winner is obligated to
have adequate balance checking account for making settlement.
3. Limitation
of SDBI Transactions in Secondary Market
a. Banks are
forbidden to transfer and make transaction of SDBI with parties other than Banks,
however SDBI transactions can be done with Bank Indonesia among others through
the transactions of OPT repo and lending facility.
b. In the
event SDBI is owned by parties other than Banks, Bank Indonesia will conduct early
redemption upon the referred SDBI.
c. Sub-Registries
are obliged to administer SDBI owned by their clients by complying with the
referred regulation.
4. Sanction
related to SDBI :
a. Sanction
for failure in making settlement of SDBI issuance
§
Shall be imposed to Banks
§
In the form of written warning, obligation to pay and
suspension to participate in OPT activities for five consecutive business days
in the event the Bank fail to make 3 (three) times settlements within 6 (six)
months.
b. Sanction
on violation of SDBI transaction limitation in secondary market
§
Imposed to Banks and Sub-Registries (as administrators
of securities on behalf of individuals).
§
In the form of written warning and obligation to pay.
5. Period
of foreign currency Term Deposit amended from the initial 7, 14 and 28 days to
1 day to 12 months.
6. Settlement
of foreign currency Term Deposit amended from the initial 2 (two) business days
after the date of transaction to no longer than 2 (two) business days after the
transaction date.
7. Swap
transaction conducted by Banks with Bank Indonesia shall be considered a pass
on of Bank derivative transaction position with the Bank related parties.
8. This
Circular Letter of Bank Indonesia comes into force on 27 August 2013.
