Regulatory Alerts2009-10-16
Circular Letter No. 11/29/DPNP - Calculation of Secondary Statutory Reserve in Rupiah
Bank Indonesia mandates all commercial banks in Indonesia to calculate and fulfill their Secondary Statutory Reserve in Rupiah at a rate of 2.5 percent of Third Party Funds. Banks may satisfy this requirement using Bank Indonesia Certificates, Government Securities, Government Sharia Securities, or excess demand deposits recorded in the BI-SSSS system, calculated against the daily average of the two preceding reporting periods. The circular establishes a precise calculation formula for reserve compliance and imposes financial penalties on non-compliant banks, calculated as 125 percent of the reserve deficit multiplied by the prevailing JIBOR overnight rate.
Share