Bank Indonesia Regulation No. 20/11/PBI/2018 on the Third Amendment to Regulation No. 17/18/PBI/2015 on Securities Transactions and Real-Time Fund Settlement

REGULATION OF BANK INDONESIA NUMBER 20/11/PBI/2018 OF 2018 ON THE THIRD AMENDMENT TO REGULATION OF BANK INDONESIA NUMBER 17/18/PBI/2015 ON THE ORGANIZATION OF TRANSACTIONS, ADMINISTRATION OF SECURITIES, AND REAL-TIME FUND SETTLEMENT BY THE GRACE OF GOD ALMIGHTY THE GOVERNOR OF BANK INDONESIA, Considering : a. that in order to immediately meet the need for a smoother, safer, more efficient and reliable payment system, it is necessary to accelerate the implementation of provisions on the obligation to provide sufficient funds at the time of delivery of fund settlement instructions and provisions on intraday liquidity facility; b. that in order to support the accelerated implementation as referred to in letter a, it has been deemed necessary to adjust the timing of the enforcement of provisions on the obligation to provide sufficient funds at the time of delivery of fund settlement instructions and provisions on intraday liquidity facility; c. that based on the considerations as referred to in letter a and letter b, it has been deemed necessary to establish a Regulation of the Bank Indonesia on the Third Amendment to Regulation of Bank Indonesia Number 17/18/PBI/2015 on the Organization of Transactions, Administration of Securities, and Real-Time Fund Settlement. Observing : 1. Law Number 23 of 1999 on Bank Indonesia (State Gazette of the Republic of Indonesia of 1999 Number 66, Supplement to the State Gazette of the Republic of Indonesia Number 3843) as amended several times, most recently by Law Number 6 of 2009 on the Stipulation of

Regulation of the Government in Lieu of Law Number 2 of 2008 on the Second Amendment to Law Number 23 of 1999 on Bank Indonesia into Law (State Gazette of the Republic of Indonesia of 2009 Number 7, Supplement to the State Gazette of the Republic of Indonesia Number 4962); 2. Law Number 24 of 2002 on Government Bonds (State Gazette of the Republic of Indonesia of 2002 Number 110, Supplement to the State Gazette of the Republic of Indonesia Number 4236); 3. Law Number 19 of 2008 on State Sharia Securities (State Gazette of the Republic of Indonesia of 2008 Number 70, Supplement to the State Gazette of the Republic of Indonesia Number 4852); 4. Law Number 3 of 2011 on Fund Transfers (State Gazette of the Republic of Indonesia of 2011 Number 39, Supplement to the State Gazette of the Republic of Indonesia Number 5204); HAS DECIDED: To establish : REGULATION OF BANK INDONESIA ON THE THIRD AMENDMENT TO REGULATION OF BANK INDONESIA NUMBER 17/18/PBI/2015 ON THE ORGANIZATION OF TRANSACTIONS, ADMINISTRATION OF SECURITIES, AND REAL-TIME FUND SETTLEMENT. Article I Several provisions in Regulation of Bank Indonesia Number 17/18/PBI/2015 on the Organization of Transactions, Administration of Securities, and Real-Time Fund Settlement (State Gazette of the Republic of Indonesia of 2015 Number 273, Supplement to the State Gazette of the Republic of Indonesia Number 5762) which have been amended several times by Regulation of Bank Indonesia: a. Number 18/6/PBI/2016 on the Amendment to Regulation of Bank Indonesia Number 17/18/PBI/2015

on the Organization of Transactions, Administration of Securities, and Real-Time Fund Settlement (State Gazette of the Republic of Indonesia of 2016 Number 77, Supplement to the State Gazette of the Republic of Indonesia Number 5877); b. Number 19/14/PBI/2017 on the Second Amendment to Regulation of Bank Indonesia Number 17/18/PBI/2015 on the Organization of Transactions, Administration of Securities, and Real-Time Fund Settlement (State Gazette of the Republic of Indonesia of 2017 Number 301, Supplement to the State Gazette of the Republic of Indonesia No. 6169), have been amended as follows:

1. The provisions of Article 1 have been amended therefore it reads as follows: Article 1 Under this Regulation of Bank Indonesia, the following definitions are employed:

2. Operator is Bank Indonesia which operates the system for transaction activities, administration of securities, and real-time fund settlement.

3. Securities are securities issued by Bank Indonesia, the Government, and/or other institutions that are administered at Bank Indonesia-Scripless Securities Settlement System.

4. Government Bonds (Surat Utang Negara), from this point onwards is referred to as SUN, are government bonds as referred to in Law that regulates government bonds.

5. State Sharia Securities (Surat Berharga Syariah Negara), from this point onwards is referred to as SBSN, are state sharia securities as referred to in Law that regulates state sharia securities.

6. State Securities (Surat Berharga Negara), from this point onwards is referred to as SBN, are SUN and SBSN.

7. Transactions with Bank Indonesia are transactions that are conducted by participants with Bank Indonesia for monetary operations, SBN transactions for and on behalf of the Government, and other transactions that are conducted with Bank Indonesia.

8. Financial Market Transactions are Securities transactions and lending and borrowing transactions between participants that are carried out conventionally or equivalently based on sharia principles in money market transactions and/or Securities transactions in the secondary market.

9. Transactions are Transactions with Bank Indonesia and Financial Market Transactions.

10. Administration is an activity that includes registration of ownership, clearing and settlement, as well as payment of coupons/interests or rewards and repayment of principal/nominal for Securities transaction proceeds and non-Securities transaction proceeds.

11. Settlement is the process of final settlement of financial transactions through debiting and crediting fund settlement accounts, securities accounts, and/or other accounts at Bank Indonesia.

12. Bank Indonesia-Electronic Trading Platform System, from this point onwards is referred to as the BI-ETP System, is an infrastructure used as a means of transactions that are conducted electronically.

13. Bank Indonesia-Scripless Securities Settlement System, from this point onwards is referred to as the BI-SSSS, is an infrastructure used as a means of Administering Transactions and Administering Securities that are conducted electronically.

14. Bank Indonesia Real-Time Gross Settlement System, from this point onwards is referred to as the BI-RTGS System, is an infrastructure used as a means of

electronic fund transfers where settlements are made real-time per transaction individually. 14. Participant is a party that has fulfilled the requirements and has obtained approval from the Operator as a participant in the operation of the BI￾ETP System, BI-SSSS and/or BI-RTGS System. 15. Central Registry is Bank Indonesia that performs the Administration function for the benefit of BI-SSSS Participants. 16. Sub-Registry is Bank Indonesia and parties that meet the requirements and are approved by the Operator as BI-SSSS Participants, to perform administration functions for the benefit of customers. 17. Intraday Liquidity Facility (Fasilitas Likuiditas Intrahari), from this point onwards is referred to as FLI, is a funding facility provided by Bank Indonesia to participating banks in the BI-RTGS system, both conventionally and based on sharia principles, to overcome funding difficulties that occur during the operating hours of the BI-RTGS system. 18. Fund Settlement Account is a BI-RTGS System Participant account in rupiah and/or foreign currencies that is administered at Bank Indonesia for the implementation of fund Settlements. 19. Securities Account is a BI-SSSS Participant account in rupiah and/or foreign currencies that is administered at Bank Indonesia for the registration of ownership and Settlement of Securities transactions, Transactions with Bank Indonesia, and/or Financial Market Transactions. 20. Bank is a commercial bank as referred to in Law which regulates banking including branch offices of banks that are domiciled abroad and sharia commercial banks including sharia business units as referred to in Law which regulates sharia banking.

21. Abnormal Circumstances are situations or conditions that occur as a result of disturbances or damage to hardware, software, communication networks, applications or supporting facilities that affect the smooth operation of the BI-ETP System, BI-SSSS, and/or BI-RTGS System.
22. Emergency is a situation that occurs beyond the control of the Operator and/or Participants which causes the operational activities of the BI-ETP System, BI-SSSS, and/or BI-RTGS System to be unable to be carried out due to fire, mass riots, sabotage, natural disasters such as earthquakes and floods, and/or other causes, as stated by the authorities or local authorities, including Bank Indonesia.
23. Between Article 80 and Article 81, 1 (one) article is inserted, namely Article 80A therefore it reads as follows: “Article 80A The provisions as referred to in Article 1, Article 46A, Article 52, Article 53, Article 54 and Article 55 comes into force on 1 November 2018.” Article II This Regulation of Bank Indonesia comes into force from the date of its promulgation. For public cognizance, it is hereby ordered that this Regulation of Bank Indonesia be promulgated in the Official Gazette of the Republic of Indonesia.

Established in Jakarta on 19 October 2018 THE GOVERNOR OF BANK OF INDONESIA,

Signed. PERRY WARJIYO Promulgated in Jakarta On 23 October 2018 THE MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, Signed. YASONNA H. LAOLY

ELUCIDATION OF REGULATION OF BANK INDONESIA NUMBER 20/11/PBI/2018 OF 2018 ON THE THIRD AMENDMENT TO REGULATION OF BANK INDONESIA NUMBER 17/18/PBI/2015 ON THE ORGANIZATION OF TRANSACTIONS, ADMINISTRATION OF SECURITIES, AND REAL-TIME FUND SETTLEMENT I. GENERAL In order to immediately meet the need for the operation of a smoother, safer, more efficient, and more reliable payment system, it is necessary to accelerate the implementation of the provisions regarding the obligation to provide sufficient funds at the time of the delivery fund Settlement instruction and the provision regarding FLI. The acceleration of the implementation of these provisions is carried out to encourage Participant to provide sufficient funds at the time of delivery of fund Settlement instructions so that queues do not occur, market discipline is maintained, and a smooth payment system is created in the delivery of fund Settlement instructions. In this regard, support is needed through an adjustment to the enforcement time of the provision regarding the obligation to provide sufficient funds at the time of delivery of the fund Settlement instruction and the provision regarding FLI. II. ARTICLE BY ARTICLE Article I Number 1 Article 1 Sufficiently clear.

Number 2 Article 80A Sufficiently clear. Article II Sufficiently clear. SUPPLEMENT TO STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6256