Regulation of Member of Board of Governors Number 10 of 2024 on Settlement for Bilateral Transactions between Indonesia and South Korea Using Rupiah and Won

REGULATION OF MEMBER OF BOARD OF GOVERNORS NUMBER 10 OF 2024 ON THE SETTLEMENT FOR BILATERAL TRANSACTIONS BETWEEN INDONESIA AND SOUTH KOREA USING RUPIAH AND WON BY THE BLESSINGS OF ALMIGHTY GOD MEMBER OF BOARD OF GOVERNOR OF BANK INDONESIA, Considering: a. that an increase in the use of local currency in bilateral transactions shall be carried out to support the achievement and maintenance of the stability in the rupiah exchange rate; b. that in order to increase the use of local currency in bilateral transactions, Bank Indonesia and the Bank of Korea cooperate to encourage bilateral transactions between Indonesia and South Korea using rupiah and won; c. that in order for the implementation of cooperation between Bank Indonesia and the Bank of Korea to run well and in a structured manner, implementing regulations are needed as guidelines for banks and market actors in the financial market; d. that based on the considerations referred to in point a, point b, and point c, it has been deemed necessary to enact Regulation of Member of Board of Governors on the Settlement for Bilateral Transactions between Indonesia and South Korea Using Rupiah and Won. Observing : (1) Bank Indonesia Regulation Number 22/12/PBI/2020 on The Settlement for Bilateral Transactions Using Local Currency through Bank (State Gazette of the Republic of Indonesia of 2020 Number 198, Supplement to State Gazette of the Republic of Indonesia Number 6550) as amended by Bank Indonesia Regulation Number 23/9/PBI/2021 on the Amendment to Regulation of Bank Indonesia Number 22/12/PBI/2020 on the Settlement for Bilateral Transactions Using Foreign Currency through Bank (State Gazette of the Republic of Indonesia of 2021 Number 158, Supplement to State Gazette of the Republic of Indonesia Number 6699);

2 (2) Bank Indonesia Regulation Number 24/6/PBI/2022 on the Policy on the Use of Rupiah in International Activities (State Gazette of the Republic of Indonesia of 2022 Number 115, Supplement to State Gazette of the Republic of Indonesia Number 6791). HAS DECIDED: To enact: REGULATION OF MEMBER OF BOARD OF GOVERNORS ON THE SETTLEMENT FOR BILATERAL TRANSACTIONS BETWEEN INDONESIA AND SOUTH KOREA USING RUPIAH AND WON. CHAPTER I GENERAL PROVISIONS Article 1 Under this Regulation of the Members of the Board of Governors, the following definitions are employed:

1. Bank means bank which carries on business activities conventional manner and/or according to sharia principles, which provides payment services, including a branch office of bank that are domiciled overseas.
2. Settlement for Bilateral Transactions Using Rupiah and Won, hereinafter referred to as Bilateral Rupiah and Won Transactions, means settlement for transactions by entities in Indonesia and South Korea using rupiah and won.
3. Appointed Cross-Currency Dealer Bank, hereinafter referred to as ACCD Bank, means an appointed bank settle certain financial activities and transactions for th e benefit of implementing Bilateral Rupiah and Won Transactions.
4. Indonesian ACCD Bank means ACCD Bank in Indonesia.
5. South Korean ACCD Bank means ACCD Bank in South Korea.
6. Underlying Transaction means any economic activity that underlies the implementation of Bilateral Rupiah and Won Transactions.
7. Indonesian Customer in Bilateral Rupiah and Won Transaction, hereinafter referred to as Indonesian Customer, means a party in Indonesia who conducts Underlying Transactions with South Korean customers.
8. South Korean Customer in Bilateral Rupiah and Won Transaction, hereinafter referred to as South Korean Customer, means a party in South Korea who conducts Underlying Transactions with Indonesian Customers.
9. Financing means financing provided by an Indonesian ACCD Bank to Indonesian Customer or by a South Korean ACCD Bank to South Korean Customer.
10. Rupiah Special Purpose Non-Resident Account, hereinafter referred to as Rupiah SNA, means a special account owned by a South Korean ACCD Bank in rupiah currency opened in Indonesian ACCD Bank for the

3 purpose of implementing Bilateral Rupiah and Won Transactions. 11. Rupiah Sub-Special Purpose Non-Resident Account, hereinafter referred to as Rupiah Sub-SNA, means a special account owned by a South Korean Customer in rupiah currency opened in South Korean ACCD Bank for the purpose of implementing Bilateral Rupiah and Won Transactions. 12. Won Special Purpose Non-Resident Account, hereinafter referred to as Won SNA, means a special account owned by an Indonesian ACCD Bank in won currency opened in South Korean ACCD Bank for the purpose of implementing Bilateral Rupiah and Won Transactions. 13. Won Sub-Special Purpose Non-Resident Account, hereinafter referred to as Won Sub-SNA, means a special account owned by an Indonesian Customer in won currency opened in Indonesian ACCD Bank for the purpose of implementing Bilateral Rupiah and Won Transactions. 14. Corporate Action means a merger, consolidation, spin￾off, and/or integration. 15. Day means business day. CHAPTER II FRAMEWORK FOR REGULATION, DEVELOPMENT, AND SUPERVISION OF BILATERAL RUPIAH AND WON TRANSACTION Article 2 The principles of the regulation, development, and supervision of Bilateral Rupiah and Won Transactions shall include: a. pay attention to Bank Indonesia’s policy in maintaining stability in the rupiah exchange rate throught the policy of using rupiah in international activities (policy driven); b. considering the agreement between Bank Indonesia and the South Korean authorities; c. considering market needs (market driven) for Bilateral Rupiah and Won Transactions; and d. effective, efficient, and well-governed. Article 3 The scope of the regulation, development, and supervision of Bilateral Rupiah and Won Transactions shall include: a. entities in Bilateral Rupiah and Won Transactions; b. financial activities and financial transactions in Bilateral Rupiah and Won Transactions; c. price quotations; and d. reporting of Bilateral Rupiah and Won Transactions.

4 CHAPTER III TRANSACTION ENTITIES Part One Indonesian ACCD Bank Paragraph 1 Criteria for Indonesian ACCD Bank Article 4 (1) The appointment of a Bank as Indonesian ACCD Bank by Bank Indonesia shall be carried out by considering: a. size; b. interconnectedness; and c. complexity. (2) In addition to considering the criteria referred to in section (1), in the appointment of an Indonesian ACCD Bank, Bank Indonesia shall also considering: a. role in supporting the development of the money market and foreign exchange market and/or payment system industry; b. recommendation from the South Korean authorities; and/or c. other considerations determined by Bank Indonesia together with the Bank of Korea. Paragraph 2 Mechanism for Appointing Indonesian ACCD Bank Article 5 (1) The mechanism for appointing a Bank as Indonesian ACCD Bank shall be carried out at least as follows: a. a prospective Indonesian ACCD Bank submits a letter of application to Bank Indonesia; b. Bank Indonesia processes the application from the prospective Indonesian ACCD Bank; and c. Bank Indonesia grants approval for the appointment of a Bank as Indonesian ACCD Bank. (2) The application letter from the prospective Indonesian ACCD Bank to Bank Indonesia referred to in section (1) point a must at least contain a statement of interest and readiness to become Indonesian ACCD Bank. (3) An example of the application letter referred to in section (1) point a is listed in Annex I which constitutes an integral part of this Regulation of Member of Board of Governors.

5 Paragraph 3 Evaluation of Indonesian ACCD Bank Article 6 (1) Bank Indonesia may conduct an evaluation of Indonesian ACCD Bank. (2) The evaluation of Indonesian ACCD Bank referred to in section (1) may be conducted by Bank Indonesia in coordination with: a. authorities in South Korea; and/or b. other relevant authorities in Indonesia. (3) The evaluation referred to in section (1) shall be conducted by considering the development of Indonesian ACCD Bank's businesses for the purposes of implementing Bilateral Rupiah and Won Transactions and the compliance of Indonesian ACCD Bank with the provisions of Bank Indonesia on the settlement for bilateral transactions using local currency through Bank. Paragraph 4 Termination of the Appointment of Indonesian ACCD Bank Article 7 (1) Bank Indonesia may terminate the appointment of a Bank as Indonesian ACCD Bank. (2) The termination of the appointment of a Bank as Indonesian ACCD Bank referred to in section (1) shall be carried out by considering the following: a. based on the results of an evaluation of Indonesian ACCD Bank conducted by Bank Indonesia in coordination with the authorities in South Korea referred to in Article 6 section (2); b. in the event that Indonesian ACCD Bank carries out a Corporate Action and Indonesian ACCD Bank is not a Bank resulting from the Corporate Action; c. in the event that Indonesian ACCD Bank has its business license repealed by the competent authority; or d. based on the request of Indonesian ACCD Bank itself. (3) Any Indonesian ACCD Bank that: a. plans to carry out a Corporate Action referred to in section (2) point b; or b. is in the process of repeal of its business license referred to in section (2) point c, is required to submit a notification letter to Bank Indonesia accompanied by the results of the general meeting of shareholders regarding the plan for Corporate Action or the plan for revocation of its business license. (4) Indonesian ACCD Bank is: required to submit a decision letter on the Corporate Action or repeal of its business license to Bank Indonesia in the event

6 that it has obtained a license, approval, or recommendation from the relevant authority related: a. Corporate Action; b. revocation of the business license by the competent authority; or c. revocation of the business license on its own initiative (self-liquidation). (5) In the event that the Bank resulting from the Corporate Action is not Indonesian ACCD Bank and intends to become Indonesian ACCD Bank, the Bank is required to meet the criteria as Indonesia ACCD Bank referred to in Article 4 and submit an application for appointment as Indonesian ACCD Bank referred to in Article 5 section (1) point a. (6) An example of the written notification letter referred to in section (3) is listed in Annex II which constitutes an integral part of this Regulation of Member of Board of Governors. Article 8 (1) Bank Indonesia shall notify Indonesian ACCD Bank in writing of the termination of the appointment of the Bank as Indonesian ACCD Bank based on the considerations referred to in Article 7 section (2). (2) Any Indonesian ACCD Bank that has received a letter of notification of termination of its appointment as an ACCD Bank may not carry out financial activities and transactions for the purpose of implementation of Bilateral Rupiah and Won Transactions. (3) Any Indonesian ACCD Bank that has received a letter of notification of termination of its appointment as Indonesian ACCD Bank is required to immediately notify its customers regarding: a. termination of the Bank activities as an Indonesian ACCD Bank; and b. mechanisms for resolving customer rights and obligations related to:

1. closing of Rupiah SNA, Won SNA, and/or Won Sub-SNA;
2. settlement of Financing; and
3. other matters related to Bank transactions with Indonesian Customer for the purposes of implementing Bilateral Rupiah and Won Transactions. Part Two Customers Article 9 (1) Indonesian Customer may be in the form of: a. individuals; b. financial services institutions; c. corporations; d. payment system infrastructure providers; or

7 e. other parties determined by Bank Indonesia. (2) Other parties determined by Bank Indonesia referred to in section (1) shall be submitted by letter and/or published on the official website of Bank Indonesia. CHAPTER IV FINANCIAL ACTIVITIES AND FINANCIAL TRANSACTIONS Part One Opening or Designation of Rupiah SNA and Won SNA Article 10 (1) Indonesian ACCD Bank shall receive a request to open a Rupiah SNA from South Korean ACCD Bank. (2) The opening of a Rupiah SNA referred to in section (1) shall be carried out by: a. opening a new Rupiah SNA account in Indonesian ACCD Bank; or b. designating an account already owned by South Korean ACCD Bank in Indonesian ACCD Bank. (3) Indonesian ACCD Bank may only open 1 (one) Rupiah SNA from each South Korean ACCD Bank (one-to￾many relationship). (4) Indonesian ACCD Bank may provide interest or profit sharing for the Rupiah SNA. Article 11 (1) Indonesian ACCD Bank is required to open a Won SNA in South Korean ACCD Bank. (2) The opening of the Won SNA referred to in section (1) shall be carried out by: a. opening a new Won SNA account at the South Korean ACCD Bank; or b. designating an account that is already owned by Indonesian ACCD Bank in South Korean ACCD Bank. (3) Indonesian ACCD Bank may only open 1 (one) Won SNA at each South Korean ACCD Bank (one-to-many relationship). Article 12 (1) The total balance of a Rupiah SNA from a South Korean ACCD Bank in all Indonesian ACCD Banks is limited to a maximum of Rp400,000,000,000.00 (four hundred billion rupiah) at the end of the Day. (2) Indonesian ACCD Bank is required to monitor and ensure that the Rupiah SNA balance does not exceed the nominal amount referred to in section (1) at the end of the Day. (3) The Rupiah SNA balance may exceed the nominal amount referred to in section (1) at the end of the Day as long as the Indonesian ACCD Bank receives documents from the South Korean ACCD Bank proving that the excess Rupiah SNA balance is used to pay the following obligations:

8 a. Underlying Transaction between Indonesia and South Korea on the following Day; or b. investment in financial instruments in rupiah. Article 13 (1) The total Won SNA balance of Indonesian ACCD Bank in all South Korean ACCD Banks is limited to a maximum of KRW35,000,000,000.00 (thirty-five billion won) at the end of the Day. (2) Indonesian ACCD Bank is required to monitor and ensure that the Won SNA balance does not exceed the nominal amount referred to in section (1) at the end of the Day. (3) In the event that the Won SNA balance at the end of the Day exceeds the nominal amount referred to in section (1), the excess Won SNA balance shall be used to pay the following obligations: a. Underlying Transaction between Indonesia and South Korea on the following Day; or b. investment in financial instruments in won. Part Two Management of Won SNA Article 14 (1) For the purpose of managing the Won SNA balance, Indonesian ACCD Bank may conduct transactions including: a. investment in financial instruments in won in South Korea; b. won-to-rupiah or foreign currency swap transactions with other Indonesian ACCD Banks and/or with South Korean ACCD Bank; and/or c. conversion from won to rupiah or other foreign currency. (2) The investment referred to in section (1) point a is prohibited from being placed in South Korea in the form of: a. real estate; b. digital asset; c. deposit; d. saving; e. certificate of deposit; or f. any other equivalent form. (3) In the event that Indonesian ACCD Bank invests in financial instruments in won in South Korea, the principal and proceeds of the investment may be transferred back to the Won SNA. Article 15 (1) In conducting rupiah-to-won or foreign currency swap transaction with South Korean ACCD Bank, Indonesian ACCD Bank is required to ensure that the transaction position does not exceed Rp400,000,000,000.00 (four hundred billion rupiah) at the end of the Day.

9 (2) The position of the won-to-rupiah or foreign currency swap transaction conducted between Indonesian ACCD Bank and other ACCD Banks is prohibited from exceeding KRW35,000,000,000.00 (thirty-five billion won) at the end of the Day. Part Three Opening or Designation of Won Sub-SNA Article 16 (1) Indonesian ACCD Bank is required to accept a request to open a Won Sub-SNA for Indonesian Customer for the purpose of implementation of Bilateral Rupiah and Won Transactions. (2) The opening of the Won Sub-SNA referred to in section (1) shall be carried out by: a. opening a new Won Sub-SNA account at Indonesian ACCD Bank; or b. designating an account already owned by Indonesian Customer in Indonesian ACCD Bank to become a Won Sub-SNA. (3) Indonesian ACCD Bank may not accept the opening of a Won Sub-SNA for parties other than Indonesian Customer. (4) Indonesian ACCD Bank may provide interest or profit sharing for the Won Sub-SNA. Part Four Management of Won Sub-SNA Balance and Rupiah Sub-SNA Balance Paragraph 1 Management of Won Sub-SNA Balance Article 17 (1) For the purpose of managing Won Sub-SNA balance, Indonesian Customer may invest in financial instruments in won in South Korea, except in the form of: a. real estate; b. digital asset; c. deposit; d. saving; e. certificate of deposit; or f. any other equivalent form. (2) The investment referred to in section (1) shall be carried out by a South Korean ACCD Bank based on an order from Indonesian Customer throught Indonesian ACCD Bank. (3) The principal and proceeds of the investment referred to in section (1) may be transferred back to the Won Sub-SNA owned by Indonesian Customer.

10 Article 18 (1) Indonesian Customer may not make deposits and withdrawals in cash in won at the Won Sub-SNA in Indonesia. (2) Indonesian ACCD Bank is prohibited from executing orders to deposit and withdraw cash in won at the Won Sub-SNA referred to in section (1). Paragraph 2 Addition to Won Sub-SNA Balance Article 19 Addition to Won Sub-SNA balance owned by Indonesian Customers may only come from: a. receipt from South Korean Customer for the settlement of Underlying Transaction; b. purchase of won against rupiah or foreign currency throught spot, forward, swap, and/or cross-currency swap transactions for the settlement of Underlying Transaction; c. receipt of interest on Won Sub-SNA balance; d. receipt of disbursement of funds from Financing; and/or e. receipt of the principal and proceeds of the investment in financial instruments referred to in Article 17 section (1). Paragraph 3 Reduction to Won Sub-SNA Balance Article 20 Reduction to Won Sub-SNA balance owned by Indonesian Customer may only come from: a. payment to South Korean Customers for the purpose of settling Underlying Transaction; b. sale of won against rupiah or foreign currency through spot, forward, swap, and/or cross-currency swap transaction from Underlying Transaction; c. settlement of Financing, including payment of principal and interest on such Financing; and/or d. transfer of won for the benefit of Indonesian Customer investment in financial instruments in won in South Korea. Paragraph 4 Management of Rupiah Sub-SNA Balance Article 21 (1) For the benefit of managing the Rupiah Sub-SNA balance, South Korean Customer may invest in financial instruments in rupiah in Indonesia, except in the form of: a. real estate; b. digital asset; c. deposit; d. saving;

11 e. certificate of deposit; or f. any other equivalent form. (2) The investment referred to in section (1) shall be carried out by Indonesian ACCD Bank based on an order from South Korean Customer through South Korean ACCD Bank. (3) The principal and proceeds of the investment referred to in section (1) may be transferred back to the Rupiah Sub-SNA owned by South Korean Customer. Article 22 Cash deposits and withdrawals of rupiah in the Rupiah Sub-SNA may not be made in South Korea. Part Five Transfer of Rupiah and Won Article 23 (1) Indonesian ACCD Bank may only transfer rupiah for the purpose of settling transactions within the framework of Bilateral Rupiah and Won Transactions. (2) Transfer of rupiah referred to in section (1) may be conducted as follows: a. between Rupiah SNA; b. between Rupiah SNA and non-Rupiah SNA at both an ACCD Bank and a non-ACCD Bank; and/or c. between rupiah accounts at a non- Indonesian ACCD Bank and Rupiah Sub- SNA at a South Korean ACCD Bank. Article 24 (1) Indonesian ACCD Bank may only transfer won for the purpose of settling transactions within the framework of Bilateral Rupiah and Won Transactions. (2) Transfer of won referred to in section (1) may be conducted as follows: a. between Won SNA; b. between Won SNA and non-Won SNA at both an ACCD Bank and a non-ACCD Bank in South Korea; and/or c. between Won Sub-SNA in Indonesian ACCD Bank and a won account in non- South Korean ACCD Bank. Article 25 Indonesian ACCD Bank is prohibited from making inter￾Won Sub-SNA transfers owned by different Indonesian Customer. Article 26 Indonesian ACCD Bank and/or South Korean ACCD Bank that make fund transfers intended for a rupiah account

12 owned by a non-South Korean ACCD Bank in Indonesia are required to ensure that the rupiah transfer is made in accordance with the transaction objectives in the implementation of Bilateral Rupiah and Won Transactions. Part Six Financing Article 27 (1) Indonesian ACCD Bank may provide Financing in won to Indonesian Customer. (2) Financing referred to in section (1) may be in the form of trade financing. (3) Financing referred to in section (2) has an Underlying Transaction of trade in goods and services between Indonesian Customer and South Korean Customer. (4) The provision of funds in won for Financing referred to in section (1) shall be carried out through: a. use of funds in won that are already owned by Indonesian ACCD Bank; b. won-to-rupiah or foreign currency transactions through swap transaction with other Indonesian ACCD Banks and/or South Korean ACCD Banks; and/or c. direct borrowing in won from other Indonesian ACCD Banks and/or South Korean ACCD Banks. (5) Any Indonesian ACCD Bank that receives direct borrowing referred to in section (4) point c is required to have Underlying Transaction as evidenced by Financing documents. Article 28 (1) Financing provided in won referred to in Article 27 may use Underlying Transaction documents in currency other than won. (2) Financing using Underlying Transaction in currency other than won referred to in section (1) must be stated in won equivalents and paid in won. Article 29 For the purpose of providing Financing facilities in rupiah by South Korean ACCD Bank to South Korean Customer, Indonesian ACCD Bank may carry out: a. Won or other foreign-to-rupiah transactions throught swap transaction with South Korean ACCD Bank; and/or b. placement in rupiah in South Korean ACCD Bank. Article 30 Direct borrowing referred to in Article 27 section (4) point c and placement in rupiah referred to in Article 29 point b are prohibited from: a. exceeding 1 (one) year; b. exceeding the period of the Underlying Transaction; and

13 c. exceeding the nominal amount of the Underlying Transaction. CHAPTER V FINANCIAL TRANSACTIONS OF INDONESIAN ACCD BANKS Part One Domestic Non-Deliverable Forward Transactions Article 31 Bilateral Rupiah and Won Transactions shall be exempted from the prohibition on conducting domestic non￾deliverable forward transaction in South Korea in won against rupiah. Part Two Won-to-Rupiah Transactions Article 32 (1) For the purpose of implementation of Bilateral Rupiah and Won Transactions, Indonesian ACCD Bank may conduct won-to-rupiah transactions in the form of: a. spot transaction; b. forward transaction; c. swap transaction; d. cross-currency swap transaction; e. domestic non-deliverable forward transaction; and/or f. other transactions determined based on an agreement between Bank Indonesia and the Bank of Korea. (2) Won-to-rupiah transactions referred to in section (1) may be conducted by Indonesian ACCD Bank with: a. other Indonesian ACCD Banks; b. South Korean ACCD Bank; c. Indonesian Customer; d. non-Indonesian ACCD Banks acting in the interests of Indonesian Customer; and/or e. non-South Korean ACCD Bank for the interests of squaring positions. Paragraph 1 Won-to-Rupiah Transactions between ACCD Banks Article 33 (1) Indonesian ACCD Bank may conduct won-to-rupiah transactions referred to in Article 32 section (1) with: a. other Indonesian ACCD Banks; and/or b. South Korean ACCD Bank, for the interests of implementing liquidity management. (2) Won-to-rupiah transactions carried out for the interests of activities referred to in section (1) may be carried out without Underlying Transaction.

14 Paragraph 2 Won-to-Rupiah Transactions between Indonesian ACCD Bank and Indonesian Customer Article 34 (1) Indonesian ACCD Bank may conduct won-to-rupiah transactions referred to in Article 32 section (1) with: a. Indonesian Customer; or b. non-Indonesian ACCD Bank acting in the interests of Indonesian Customer. (2) Won-to-rupiah transactions referred to in (1) with a nominal value above a certain threshold per transaction is required to be proven with Underlying Transaction documents. (3) The certain threshold referred to in section (2) for: a. won-to-rupiah purchase transaction is equivalent to USD500,000.00 (five hundred thousand United States dollars) per transaction; and b. won-to-rupiah sales transaction must be carried out in accordance with the provisions of Bank Indonesia on foreign exchange market transactions. (4) The nominal value and period of won-to-rupiah purchase transactions referred to in section (1) are prohibited from exceeding the nominal value and period of the Underlying Transaction. (5) Indonesian Customer may conduct won-to-rupiah purchase transactions referred to in section (1) using the Underlying Transaction denominated in currency other than won. Part Three Adjustment of Financial Transaction Settlement Article 35 (1) Adjustment of the settlement of won-to-rupiah transactions referred to in Article 32 section (1) may be made throught: a. transaction extension; b. acceleration of transaction settlement; and/or c. termination of the transaction. (2) Adjustment of the transaction settlement referred to in section (1) may be done by netting. Article 36 (1) Adjustment of the settlement of won-to-rupiah transactions through transaction extension, acceleration of transaction settlement, and/or termination of the transaction referred to in Article 35 section (1) may be done without Underlying Transaction documents. (2) The transaction nominal for adjustment of financial transaction settlement referred to in section (1) may be done at most the same amount as the initial Underlying Transaction nominal.

15 (3) The transaction period for adjustment of financial transaction settlement referred to in section (1) must be done no later than: a. the expiry of the initial Underlying Transaction period; or b. the settlement date that has been adjusted in the Underlying Transaction document which may be supplemented with supporting documents. (4) Adjustment of financial transaction settlement referred to in section (1) must be done with the same Indonesian ACCD Bank or South Korean ACCD Bank in accordance with the initial transaction contract. Part Four Settlement of Won-to-Rupiah Transactions Article 37 (1) Settlement of won-to-rupiah transactions conducted by Indonesian ACCD Bank with: a. other Indonesian ACCD Banks referred to in Article 33 section (1) point a; and b. Indonesian Customer referred to in Article 34 section (1) point a, may be done by transferring the principal in full (gross) or by netting. (2) Settlement of won-to-rupiah transactions conducted by Indonesian ACCD Bank with a non-Indonesian ACCD Bank referred to in Article 34 section (1) point b shall be done by transferring the principal in full (gross). Part Five Squaring Positions Article 38 (1) Indonesian ACCD Bank may conduct won-to-rupiah transactions referred to in Article 32 section (1) with: a. other Indonesian ACCD Banks; b. South Koreans ACCD Bank; c. non-Indonesian ACCD Banks acting in the interests of Indonesian Customers; and/or d. non-South Korean ACCD Bank based on Underlying Transaction conducted by Indonesian Customer, for the purpose of implementation of squaring positions. (2) Indonesian ACCD Bank may conduct squaring positions referred to in section (1) for won-to-rupiah transactions in: a. full (gross) or netting with:

1. other Indonesian ACCD Banks; and/or
2. South Korean ACCD Bank, without Underlying Transaction documents; or b. full (gross) with:
3. other non-Indonesian ACCD Banks; and/or
4. non-South Korean ACCD Bank, which are required to be proven with Underlying Transaction documents.

16 Article 39 (1) For the purpose of implementation of squaring positions from South Korean ACCD Bank, Indonesian ACCD Bank may conduct won-to-rupiah transactions referred to in Article 32 section (1). (2) Indonesian ACCD Bank may conduct transactions for the purpose of implementation of squaring positions from the South Korean ACCD Bank referred to in section (1) in: a. full (gross); or b. netting. (3) The implementation of squaring positions referred to in section (1) shall be carried out without Underlying Transaction documents. Part Six Underlying Transaction Paragraph 1 Types of Underlying Transaction Article 40 Underlying Transaction for the purpose of implementation of Bilateral Rupiah and Won Transactions shall include: a. current transactions between Indonesian Customer and South Korean Customer in the form of:

1. trade in goods and services between Indonesia and South Korea;
2. primary income transactions which include: a) transactions for receipt and payment of manpower compensation; and b) investment income from:

1. direct investment;
2. portfolio investment; and/or
3. other investments; and

3. secondary income transactions which include: a) receipt and payment of government sector; b) receipt and payment of other sectors including remittances; and c) other secondary income transactions, but excluding grants, gifts, donations, and/or the like; b. Financing from Indonesian ACCD Bank to Indonesian Customer referred to in Article 27; and c. other Underlying Transactions. Paragraph 2 Underlying Transaction Documents Article 41 (1) Underlying Transaction documents may be in the form of: a. final Underlying Transaction documents; or b. estimated Underlying Transaction documents.

17 (2) Details of the Underlying Transaction documents referred to in section (1) are listed in Annex III which constitutes an integral part of this Regulation of Member of Board of Governors. Article 42 (1) Estimated Underlying Transaction documents referred to in Article 41 section (1) point b are only permitted for current transactions. (2) Calculation of estimated Underlying Transaction referred to in section (1) shall be carried out based on receipt or payment of current transactions supported by historical transaction realization data or based on the results of ACCD Bank assessment if historical transaction realization data is not available. (3) The transaction period using the estimated Underlying Transaction documents referred to in section (1) may not exceed the period of estimated receipt or payment needs for current transactions. (4) The nominal transaction using the estimated Underlying Transaction documents referred to in section (1) may not exceed the nominal estimated receipt or payment needs of the current transaction. Paragraph 3 Underlying Transaction throught Cross-Border Payment Article 43 (1) Underlying Transaction referred to in Article 40 shall include current transaction activities whose payments are made through cross-border payments. (2) The payment system infrastructure organizer that provides cross-border payment facilities referred to in section (1) is required to use Indonesian ACCD Bank to: a. open Won Sub-SNA; and b. conduct won-to-rupiah transactions. Paragraph 4 Underlying Transaction Documents for Won-to-Rupiah Transactions Article 44 (1) Won-to-rupiah transactions in the form of spot between Indonesian ACCD Bank and: a. Indonesian Customer; or b. non-Indonesian ACCD Bank acting in the interests of Indonesian Customer, referred to in Article 32, must be proven with the final Underlying Transaction documents. (2) Won-to-rupiah transactions in the form of forward, swap, cross-currency swap, and/or domestic non￾deliverable forward, between Indonesian ACCD Bank and: a. Indonesian Customer; or

18 b. non-Indonesian ACCD Bank acting in the interests of Indonesian Customers, referred to in Article 32, must be proven by the final Underlying Transaction documents or estimated Underlying Transaction documents. (3) Underlying Transaction documents referred to in section (1) and section (2) are required to be received by Indonesian ACCD Bank no later than the settlement date. Paragraph 5 Underlying Transaction Documents for Financing Article 45 (1) Financing provided by Indonesian ACCD Bank referred to in Article 27 is required to be proven with the final Underlying Transaction documents from Indonesian Customer. (2) Indonesian ACCD Bank is required to ensure that the final Underlying Transaction documents referred to in section (1) are in accordance with the purpose of the Financing. CHAPTER VI PRICE QUOTATION Article 46 (1) Indonesian ACCD Bank is required to publish and display the won-to-rupiah price quotation on information provider facilities. (2) The won-to-rupiah price quotation is required to be published and displayed on information provider facilities at least 1 (one) time every Day. (3) The determination of the price quotation referred to in section (1) must: a. reflect the fair price that occurs in the foreign exchange market; and b. be transacted or executed. (4) Indonesian ACCD Bank is required to use the price quotation referred to in section (1) as a reference in conducting won-to-rupiah transactions. CHAPTER VII REPORTING Article 47 (1) Indonesian ACCD Bank is required to submit a report on the implementation of Bilateral Rupiah and Won Transactions to Bank Indonesia. (2) Submission of the report referred to in section (1) shall be fulfilled through: a. integrated commercial bank report; b. foreign exchange traffic report; and c. other reports stipulated by Bank Indonesia.

19 (3) The reporting mechanism referred to in section (2) shall be carried out in accordance with the provisions of Bank Indonesia on reporting. Article 48 (1) If necessary, Bank Indonesia may request an incidental report on the implementation of Bilateral Rupiah and Won Transactions to Indonesian ACCD Bank. (2) Indonesian ACCD Bank is required to submit the incidental report referred to in section (1). (3) Any Indonesian ACCD Bank that violates the provisions referred to in section (32) shall be subject to administrative sanctions in the form of a written warning. CHAPTER VIII PROCEDURES FOR IMPOSING SANCTIONS Article 49 (1) Bank Indonesia shall impose sanctions in the form of a written warning against any Indonesian ACCD Bank that violates the provisions of Regulation of Bank Indonesia on the settlement for bilateral transactions using local currency through bank. (2) The written warning referred to in section (1) shall be submitted by letter with a carbon copy to the relevant authorities. CHAPTER IX CORRESPONDENCE Article 50 (1) Correspondence related to the appointment of an Indonesian ACCD Bank and the termination of the appointment of Indonesian ACCD Bank is required to be submitted to: International Department and Financial Market Development Department Bank Indonesia Jalan M. H. Thamrin Nomor 2 Jakarta Pusat – 10350 E-mail: DInt-HI3@bi.go.id and DPPK-KPVA@bi.go.id. (2) Correspondence related to reporting is required to comply with the provisions of Bank Indonesia on reporting. (3) Correspondence related to the implementation of Bilateral Rupiah and Won Transactions shall be submitted throught the BICARA Contact Center e￾mail address: bicara@bi.go.id. (4) In the event of a change in the correspondence address referred to in section (1), section (2), and/or section (3), Bank Indonesia is required to inform of the change in address throught letter and/or other media.

20 CHAPTER X CLOSING PROVISIONS Article 51 This Regulation of Member of Board of Governors comes into force on 30 September 2024. In order that every person may know hereof, it is ordered to promulgate this Regulation of Member of Board of Governors in Bulletin Gazette of the Republic of Indonesia. Issued in Jakarta on 18 September 2024 MEMBER OF BOARD OF GOVERNORS, Signed. DESTRY DAMAYANTI

21 ELUCIDATION OF REGULATION OF MEMBER OF BOARD OF GOVERNORS NUMBER 10 OF 2024 ON THE SETTLEMENT FOR BILATERAL TRANSACTIONS BETWEEN INDONESIA AND SOUTH KOREA USING RUPIAH AND WON I. GENERAL The stability of the rupiah exchange rate plays an important role in achieving and maintaining stability in the financial system. To achieve the stability of the rupiah exchange rate, Bank Indonesia continues to strengthen policies in maintaining stability in the rupiah exchange rate and increasing the use of local currency in international trade transactions and financial market deepening, including the bilateral transaction settlement scheme using local currency. Hereinafter, Bank Indonesia and the Bank of Korea have made an agreement to encourage the use of rupiah and won to encourage Bilateral Rupiah and Won Transactions, therefore it is hoped that the implementation of cooperation between Bank Indonesia and the Bank of Korea can run well and in a structured manner. In order to support the implementation of the agreement, regulations are needed regarding the implementation of financial activities and transactions through the Bilateral Rupiah and Won Transaction scheme. Based on the above mentioned matters, it is necessary to issue the Regulation of Member of Board of Governors on the Settlement for Bilateral Transactions between Indonesia and South Korea using Rupiah and Won. II. ARTICLE BY ARTICLE Article I Sufficiently clear. Article 2 Point a Sufficiently clear. Point b Sufficiently clear. Point c Market-driven needs for Bilateral Rupiah and Won Transactions must be implemented in accordance with foreign exchange traffic management principles. Point d Sufficiently clear. Article 3 Sufficiently clear. Article 4 Section (1)

22 Point a Sufficiently clear. Point b Sufficiently clear. Point c The general criterion of complexity includes the component of substitutability. Section (2) Sufficiently clear. Article 5 Section (1) Sufficiently clear. Section (2) The application letter from the prospective Indonesian ACCD Bank may be accompanied by information on partners of the prospective Indonesian ACCD Bank in South Korea. Section (3) Sufficiently clear. Article 6 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) Considerations regarding the development of Indonesian ACCD Bank's business for the purposes of implementing Bilateral Rupiah and Won Transactions and compliance of Indonesian ACCD Bank with the provisions of Bank Indonesia on the settlement for bilateral transactions using local currency through Bank, among other things, are obtained based on the results of supervision carried out by Bank Indonesia and/or the results of coordination between Bank Indonesia and other relevant authorities. Article 7 Sufficiently clear. Article 8 Sufficiently clear. Article 9 Sufficiently clear. Article 10 Section (1)

23 Sufficiently clear. Section (2) Sufficiently clear. Section (3) Example: Bank A, which is an Indonesian ACCD Bank, may accept the opening of 1 (one) Rupiah SNA each from Bank X and 1 (one) Rupiah SNA from Bank Y, both of which are South Korean ACCD Bank. Section (4) Sufficiently clear. Article 11 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) Example: Bank A, which is an Indonesian ACCD Bank, may open 1 (one) Won SNA at Bank Y and 1 (one) Won SNA at Bank Z, both of which are South Korean ACCD Bank. Article 12 Section (1) Sufficiently clear. Section (2) Example: Bank X, which is a South Korean ACCD Bank, has Rupiah SNA in Bank A, Bank B, and Bank C, all three of which are Indonesian ACCD Banks. The total balance in Bank A, Bank B, and Bank C shall be a maximum of Rp400,000,000,000.00 (four hundred billion rupiah) at the end of the Day. Section (3) Example: Bank X, which is a South Korean ACCD Bank, has a Rupiah SNA at Bank A, which is an Indonesian ACCD Bank. At the end of the Day on 1 August 2025, the total balance of Rupiah SNA of Bank X at Bank A shall be Rp600,000,000,000.00 (six hundred billion rupiah). The Rupiah SNA balance may exceed the limit of Rp400,000,000,000.00 (four hundred billion rupiah) as long as Bank X submits a document stating that the excess balance will be used to pay import obligations to exporters in Indonesia. Article 13 Section (1)

24 Bank A, which is an Indonesian ACCD Bank, has Won SNA in Bank X, Bank Y, and Bank Z, all three of which are South Korean ACCD Banks. The total balance in Bank X, Bank Y, and Bank Z shall be at a maximum of KRW35,000,000,000.00 (thirty-five billion won) at the of the Day. Section (2) Sufficiently clear. Section (3) Example: Bank A, which is an Indonesian ACCD Bank, has Won SN A in Bank X, Bank Y, and Bank Z, all three of which are South Korean ACCD Banks. At the end of the Day on 31 July 2025, the total balance of Won SNA of Bank A at Bank X, Bank Y, and Bank Z shall be KRW50,000,000,000.00 (fifty billion won). The Won SNA balance may exceed the limit of KRW35,000,000,000.00 (thirty-five billion won) as long as Bank A has a document stating that the excess balance will be used to pay import obligations to exporters in South Korea. Article 14 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) Example: Bank A, which is an Indonesian ACCD Bank, invests in South Korean government securities amounting to KRW30,000,000.00 (thirty million won) with a coupon of 3% (three percent) per year. Based on this investment, when the coupon payment is due, Bank A receives quarterly coupons amounting to KRW225,000.00 (two hundred and twenty￾five thousand won). The receipt of the coupon may be transferred to Won SNA of Bank A. Article 15 The calculation of the position of the rupiah-to-won or foreign currency swap transaction may be done by netting. The term "Netting" means the settlement of transactions carried out without transferring the principal funds in full so that only the amount of funds that is the result of calculating the notional with the exchange rate difference moves. Article 16 Sufficiently clear. Article 17 Section (1)

25 Sufficiently clear. Section (2) Example: Bank X, which is a South Korean ACCD Bank, carries out an order from Customer B, which is an Indonesian Customer, through Bank C, which is an Indonesian ACCD Bank, to make an investment in the form of purchasing government securities in South Korea amounting to KRW200,000,000.00 (two hundred million won) using the Won Sub-SNA balance. Section (3) Example: Customer A, an Indonesian Customer, intends to sell shares of a South Korean company amounting to KRW 10,000,000.00 (ten million won). The proceeds from the sale of the shares may be transferred back to Customer A's Won Sub-SNA at Indonesian ACCD Bank. Article 18 Sufficiently clear. Article 19 Point a Example: The Won Sub-SNA balance of PT A, which is an Indonesian Customer, increases by KRW10,000,000.00 (ten million won) due to receiving proceeds from the sale of exported goods to importers in South Korea. Point b Spot transaction shall include today and tomorrow transactions. Example: An Indonesian Customer makes a spot transaction to purchase KRW/IDR of KRW10,000,000.00 (ten million won) with an Indonesian ACCD Bank for trade payments to a South Korean Customer. Based on this transaction, the Indonesian Customer's Won Sub-SNA balance increases by KRW 10,000,000.00 (ten million won). Point c Example: The Won Sub-SNA balance of PT A, which is an Indonesian Customer, increases by KRW10,000.00 (ten thousand won) because it earns interest on the average Won Sub-SNA balance. Point d Example: The Won Sub-SNA balance of PT A, which is an Indonesian Customer, increases by KRW1,000,000.00 (one million won) due to receiving a disbursement of funds from the Financing facility.

26 Point e Sufficiently clear. Article 20 Point a Sufficiently clear. Example: The Won Sub-SNA balance of PT A, which is an Indonesian Customer, decreases by KRW10,000,000.00 (ten million won) because it is used to pay for the purchase of imported goods from an exporter in South Korea. Point b See the elucidation of Article 19 point b. Example: An Indonesian Customer makes a purchase spot transaction of KRW/IDR of KRW10,000,000.00 (ten million won) with an Indonesian ACCD Bank to convert export proceeds into won. Based on this transaction, Indonesian Customer Won Sub-SNA balance is reduced by KRW 10,000,000.00 (ten million won). Point c Example: The Won Sub-SNA balance belonging to PT Y, which is an Indonesian Customer, decreases by KRW1,000,000.00 (one million won) because it is used to settle the Financing facility. Point d Example: PT D, which is an Indonesian customer, purchases South Korean government securities or bonds amounting to KRW10,000,000.00 (ten million won). Based on this transaction, PT D's Won Sub-SNA balance decreases by KRW10,000,000.00 (ten million won). Article 21 Section (1) South Korean Customer who may invest in financial instruments in rupiah in Indonesia are South Korean Customer who have a balance originating from Underlying Transaction activities. Section (2) Example: Bank A, which is an Indonesian ACCD Bank, carries out an order from Customer X, which is a South Korean Customer, through Bank Y, which is a South Korean ACCD Bank, to make an investment in the form of purchasing government securities (SBN) in Indonesia amounting to Rp100,000,000,000.00 (one hundred billion rupiah) using the Rupiah Sub-SNA balance.

27 Section (3) Example: Exporter X in South Korea has a Rupiah Sub￾SNA balance of Rp1,000,000,000.00 (one billion rupiah) which is funded from foreign exchange from exports. Based on the Rupiah Sub-SNA balance, Exporter X may purchase government securities (SBN) in Indonesia for Rp500,000,0 00.00 (five hundred million rupiah). Six months later, Exporter X intends to sell the government securities (SBN). The proceeds from the sale of the government securities (SBN) may be transferred back to Exporter X' Rupiah Sub￾SNA in South Korean ACCD Bank. Article 22 Sufficiently clear. Article 23 Section (1) Settlement of transactions within the framework of Bilateral Rupiah and Won Transactions shall include settlement of Underlying Transactions and settlement of investments in financial instruments in rupiah in Indonesia. Section (2) Non-Rupiah SNA shall include accounts owned by Banks or owned by Indonesian Customer. Article 24 Sufficiently clear. Article 25 Sufficiently clear. Article 26 The term "Transaction objective" means the objective as stated in the Underlying Transaction. Article 27 Sufficiently clear. Article 28 Section (1) Example: An Indonesian Customer purchases goods from a South Korean Customer amounting to USD100,000.00 (one hundred thousand United States dollars). Indonesian Customer and South Korean Customer then agree that payment may also be made in won. Indonesian Customer then opens a letter of credit at Bank A which is an Indonesian ACCD Bank for payment of the invoice amounting to KRW135,000,000.00 (one hundred thirty-five million won) which is equivalent to USD100,000.00 (one hundred thousand United States dollars).

28 Section (2) Sufficiently clear. Article 29 Sufficiently clear. Article 30 Sufficiently clear. Article 31 Sufficiently clear. Article 32 Section (1) Point a See the elucidation of Article 19 point b. Point b Sufficiently clear. Point c Sufficiently clear. Point d Sufficiently clear. Point e Sufficiently clear. Section (2) Point a Sufficiently clear Point b Sufficiently clear. Point c Sufficiently clear. Point d Sufficiently clear. Point e Example: Bank B, which is an Indonesian ACCD Bank, with a short position in the won currency of KRW1,000,000.00 (one million won), may carry out a squaring position with Bank X, which is a non-South Korean ACCD Bank in the form of a purchase forward transaction of KRW/IDR of KRW1,000,000.00 (one million won). Article 33 Section (1) Included in liquidity management is the management of the Won SNA balance.

29 Section (2) Sufficiently clear. Article 34 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) Point a A certain threshold equivalent to USD500,000.00 (five hundred thousand United States dollars) per transaction shall also apply to rupiah and won transfers. Example: Bank B, which is a non-Indonesian ACCD Bank, for the benefit of importer A, who is an Indonesian Customer who will make payment for the purchase of goods to an exporter in South Korea, purchases KRW/IDR through a spot transaction of KRW500,000.00 (five hundred thousand won) or equivalen t to USD31,700.00 (thirty-one thousand seven hundred United States dollars) to Bank C, which is an Indonesian ACCD Bank. The purchase of KRW/IDR by Bank B does not need to be proven by the Underlying Transaction document from importer A. Point b Sufficiently clear. Section (4) Example: Importer B, which is an Indonesian Customer, based on the sales contract, has an obligation to an exporter in South Korea that will mature in 1 (one) month in the amount of KRW740,000,000.00 (seven hundred and forty million won) or equivalent to USD550,000.00 (five hundred and fifty thousand United States dollars). Based on the Underlying Transaction, importer B may make a KRW/IDR purchase transaction through a forward transaction at a maximum of KRW740,000,000.00 (seven hundred and forty million won) with a maximum period of 1 (one) month. Section (5) Example: Importer C, which is an Indonesian Customer, intends to settle an invoice from exporter X, a South Korean Customer, amounting to USD1,000,000.00 (one million United States dollars) or equivalent to KRW1,350,000,000. 00 (one billion three hundred and fifty million won) with a USD/KRW exchange rate of 1,350. Based on the invoice, importer C may purchase KRW/IDR through a spot transaction of KRW1,350,000,000.00 (one billion three hundred and fifty million won).

30 Article 35 Section (1) Point a Example: On 2 December 2025, customer A, which is an Indonesian Customer, makes a purchase forward transaction of KRW/IDR with Bank B, which is an Indonesian ACCD Bank, with a period of 3 (three) months until 2 March 2026. Before the due date, customer A receives information that the shipment of goods by the seller abroad has been delayed for 1 (one) month, therefore the Underlying Transaction payment due date is postponed to 2 April 2026. To extend the transaction, on 26 February 2026, customer A may roll over with Bank B from the previous due date of 2 March 2026 to 2 April 2026. Point b Example: On 2 December 2025, customer A, which is an Indonesian Customer, makes a purchase forward transaction of KRW/IDR with Bank B, which is an Indonesian ACCD Bank, with a period of 3 (three) months until 2 March 2026. Before the due date, customer A receives information that the shipment of goods by the seller abroad can be accelerated by 1 (one) month, therefore the payment due date is advanced to 2 February 2026. To accelerate the settlement of the transaction, on 29 January 2026, customer A may make an early termination with Bank B from the previous due date of 2 March 2026 to 2 February 2026. Point c Example: On 2 December 2025, customer A, which is an Indonesian Customer, makes a purchase forward transaction of KRW/IDR with Bank B, which is an Indonesian ACCD Bank, with a period of 3 (three) months until 2 March 2026. Before the due date, customer A receives information that there is force majeure so that the sale and purchase transaction is cancelled by the seller abroad. Based on this, customer A may terminate the transaction (unwind) by making a sales forward transaction with Bank B. Section (2) Sufficiently clear. Article 36 Sufficiently clear. Article 37 Section (1) See the elucidation of Article 15. Section (2) Sufficiently clear.

31 Article 38 Section (1) See the elucidation of Article 32 section (2) point e. Section (2) See the elucidation of Article 32 section (2) point e. Point a See the elucidation of Article 15 Example: Importer A, an Indonesian Customer, purchases KRW/IDR from Bank B, an Indonesian ACCD Bank, through a spot transaction of KRW1,500,000.00 (one million five hundred thousand won). Then, exporter C, an Indonesian Customer, sells KRW/IDR through a spot transaction of KRW500,000.00 (five hundred thousand won) to Bank B. Based on this transaction, Bank B may conduct a netting squaring position by purchasing KRW/IDR from another ACCD Bank for KRW1,000,000.00 (one million won), which is the difference between KRW1,500,000.00 (one million five hundred thousand won) and KRW500,000.00 (five hundred thousand won) without an Underlying Transaction document. Point b Example: Importer A, an Indonesian Customer, makes a spot transaction to purchase KRW/IDR to Bank C, an Indonesian ACCD Bank, through a spot transaction of KRW1,500,000.00 (one million five hundred thousand won). Exporter B, an Indonesian Customer, also makes a sale of KRW/IDR throught a spot transaction of KRW500,000.00 (five hundred thousand won) to Bank C. Based on this transactions, Bank C must make a full (gross) squaring position by making a spot transaction to purchase KRW/IDR of KRW1,500,000.00 (one million five hundred thousand won) and a spot transaction to sell KRW/IDR of KRW500,000.00 (five hundred thousand won) with a non-South Korean ACCD Bank accompanied by the Underlying Transaction document. Article 39 Section (1) See the elucidation of Article 32 section (2) point e. Section (2) See the elucidation of Article 32 section (2) point e. Point a Sufficiently clear. Point b See the elucidation of Article 15. Example: Customer X, a South Korean Customer, sells KRW/IDR to Bank M, a South Korean ACCD Bank, through

32 a spot transaction of Rp1,000,000,000.00 (one billion rupiah). Then, customer Y, a South Korean Customer, purchases KRW/IDR throught a spot transaction of Rp600,000,000.00 (six hundred million rupiah) to Bank M. Based on this transaction, Bank M may conduct a netting squaring position by selling KRW/IDR to an Indonesian ACCD Bank through a spot transaction of Rp400,000,000.00 (four hundred million rupiah) which is the difference between Rp1,000,000,000.00 (one billion rupiah) and Rp600,000,000.00 (six hundred million rupiah). Section (3) See the elucidation of Article 32 section (2) point e. Article 40 Point a Sufficiently clear. Point b Sufficiently clear. Point c Included in other Underlying Transactions are rent and taxes. Article 41 Section (1) Point a The term Final Underlying Transaction documents" means legally binding documents that show the obligation to pay or the right to receive payment with an unchanged nominal amount. Point b The term "Estimated Underlying Transaction documents" means documents that show an estimate of the amount of payment or receipt requirements based on historical data. Section (2) Sufficiently clear. Article 42 Section (1) The type of estimated Underlying Transaction document is a document related to the planned receipt or payment needs for current transactions. Section (2) Sufficiently clear. Section (3) Sufficiently clear.

33 Section (4) Sufficiently clear. Article 43 Section (1) The term “Cross-border payment” means payment transaction between a payor and payee subject to the jurisdiction of different countries. Cross-border payment may be in the form of Quick Response Payment and other cross border payment methods. Quick Response Payment may support retail trading activities and secondary income transactions. Section (2) The term dPayment system infrastructure organizer" means party that has obtained permission/determination to organize payment system activities referring to the provisions of Bank Indonesia on payment systems. Article 44 Section (1) See the elucidation of Article 19 Point b. Example: An Indonesian ACCD Bank conducts spot KRW/IDR transactions with an Indonesian Customer or a non￾Indonesian ACCD Bank. Non-Indonesian ACCD Bank is required to submit Underlying Transaction documents including letters of credit or invoices showing trade transactions between Indonesia and South Korea. Section (2) Example: Indonesian ACCD Bank conducts a forward KRW/IDR transaction with an Indonesian Customer. Indonesian ACCD Bank is required to ask Indonesian Customer to submit the Underlying Transaction documents that are final or estimated. Final documents include letters of credit or invoices. Meanwhile, estimated documents include cash flow projections that show estimated receipts or payment needs. Section (3) Example: On 1 December 2025, an Indonesian ACCD Bank conducts a KRW/IDR forward transaction with an Indonesian Customer with a tenor of 1 (one) year for import purposes from South Korea. Thus, Indonesian Customer has a maximum time until the settlement date, which is 1 December 2026, to provide the Underlying Transaction documents to Indonesian ACCD Bank. Article 45 Sufficiently clear.

34 Article 46 Section (1) "Won-to-rupiah price quotation" is: a. spot quotation; and b. forward quotation, if needed. "Information provider facilities" shall include facilities provided by Refinitiv, Bloomberg, and/or other facilities that can be accessed by the public. Section (2) Sufficiently clear. Section (3) Determination of price quotations may take into account reference prices published on the official website of Bank Indonesia and/or other media determined by Bank Indonesia. Point a Sufficiently clear. Point b Quotations that may be transacted or executed must be carried out with reference to the risk management of the Indonesian ACCD Bank. Section (4) Sufficiently clear. Article 47 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) The provisions of Bank Indonesia on reporting shall include the provisions of Bank Indonesia on integrated commercial bank reports and the provisions of Bank Indonesia on foreign exchange traffic reports. Article 48 Section (1) Data and information in the incidental report shall include foreign exchange transactions of won against rupiah, Won SNA balance position, fund transfers, Won Sub-SNA balance and transfer positions, Financing positions, and Rupiah SNA balance and transfer. Section (2) Sufficiently clear. Section (3) Sufficiently clear.

35 Article 49 Sufficiently clear. Article 50 Section (1) Sufficiently clear. Section (2) The provisions of Bank Indonesia on reporting shall include the provisions of Bank Indonesia on integrated commercial bank reports and the provisions of Bank Indonesia on foreign exchange traffic reports. Section (3) Sufficiently clear. Section (4) Sufficiently clear. Article 51 Sufficiently clear.