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2014-09-17

Bank Indonesia Regulation No. 16/18/PBI/2014 on Amendment to Hedging Transaction Regulations

Bank Indonesia issued Regulation No. 16/18/PBI/2014 to amend the rules governing hedging transactions between banks and domestic parties. The regulation mandates that hedging must be linked to underlying transactions with terms and nominal values that do not exceed those of the underlying assets. It also aligns settlement and sanction procedures with existing foreign exchange and risk management regulations while revoking Circular No. 15/42/DPM.

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Sumber Data Legal Information Division, Department of Legal Affairs

9/17/2014 9:00 AM

Judul Bank Indonesia Regulation No.16/18/PBI/2014 Dated 17 September 201 concerning Amendment to Bank Indonesia Regulation Number 15/8/PBI/2013 on Hedging Transaction to Banks

Peraturan Bank Indonesia

Moneter dan Pasar Keuangan

Berlaku

Bank Indonesia Regulation

Monetary

Effective

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Bank Indonesia Regulation No.16/18/PBI/2014 Dated 17 September 201 concerning Amendment to Bank Indonesia Regulation Number 15/8/PBI/2013 on Hedging Transaction to Banks

Effective

10 November 2014

Background and Purpose

In order to implement the mandated Law, Bank Indonesia has formulated several policies intended to achieve and to maintain the stability of Rupiah, particularly in relation to the stability of Rupiah exchange rate. As part of such measures, Bank Indonesia needs to perform improvement to the regulation on hedging transactions of customers to banks.

The improvement referred to shall be performed in order to align it with the regulation on foreign exchange transactions against Rupiah between banks and the domestic parties in the domestic foreign exchange market. This is expected to realize and maintain the stability of Rupiah exchange rate and to encourage the deepening of domestic foreign exchange market.

II.

Regulation Materials

Hedging transactions must be performed by referring to Bank Indonesia regulation concerning foreign exchange transactions against Rupiah between banks and the domestic party, Bank Indonesia regulation on derivative transactions, and regulation on the application of bank’s risk management.

Hedging transactions must be performed with underlying transactions, whereas the term and nominal of hedging transactions shall not exceed the term and the nominal value of the underlying transactions.

Settlements of hedging transactions shall be performed pursuant to Bank Indonesia regulation concerning foreign exchange transactions against Rupiah between banks and the domestic parties.

Sanctions shall refer to Bank Indonesia regulation concerning foreign exchange transactions against Rupiah between Banks and the domestic parties, Bank Indonesia regulation on derivative transactions, Bank Indonesia regulation on commercial banks’ daily reports and regulation on the application of bank’s risk management.

Revocation of Bank Indonesia Circular No.15/42/DPM dated 8 O c tober 2013 concerning Hedging Transaction to Banks.

Lampiran Attachments

Lampiran 1 Bank Indonesia Regulation No.16/18/PBI/2014

Lampiran 2 FAQ - Bank Indonesia Regulation No.16/18/PBI/2014

Lampiran 3

Lampiran 4

Lampiran 5

Lampiran 6

Lampiran 7

Lampiran 8

Lampiran 9

Lampiran 10

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Halaman ini terakhir diperbarui 1/27/2021 9:15 PM

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