Regulatory Alerts2010-07-07
Circular Letter of Bank Indonesia No. 15/32/DPM concerning the Sixth Amendment of Bank Indonesia Circular Letter No. 12/18/DPM regarding Open Market Operations
Bank Indonesia issued Circular Letter No. 15/32/DPM to amend regulations governing Open Market Operations, specifically introducing new mechanisms and limitations for Bank Indonesia Certificates of Deposits (SDBI). The amendment restricts SDBI transactions to inter-bank transfers, mandates early redemption for non-bank holders, and establishes written warnings and payment obligations as sanctions for settlement failures or secondary market violations. Additionally, the document extends the permissible period for foreign currency Term Deposits to 12 months, adjusts settlement timelines, and reclassifies swap transactions with Bank Indonesia as pass-through derivative positions.
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