Bank Indonesia Regulation No. 7/10/PBI/2005 Commercial Bank Daily Report

Unofficial Translation
BANK INDONESIA REGULATION
NUMBER: 7/ 10 /PBI/2005
CONCERNING
COMMERCIAL BANK DAILY REPORT
GOVERNOR OF BANK INDONESIA,
Considering : a. whereas in order to perform the tasks of Bank Indonesia in the monetary, banking and payment system sectors more effectively, a daily information which is timely, safe, accurate, reliable, complete and easy to access simultaneously is deemed necessary; b. whereas in order to be able to provide the information mentioned above, it is necessary to have a daily report system from banks to supply the information needed for the stipulation and implementation of monetary, payment system and risk based bank supervision policies;
c. whereas the current daily report is provided by the Money
Market Information Centre system, however, to supply the aforementioned daily information, it is deemed necessary to improve the content as well as the technology in the system;

In view of :
d. whereas the improvement in the Money Market Information Centre system would be done through the Commercial Bank Daily Report system; e. whereas based on considerations mentioned in letter a, letter b, letter c, and letter d above, it is deemed necessary to stipulate a regulation concerning Commercial Bank Daily Report in a Bank Indonesia Regulation.

1. Act Number 7 Year 1992 concerning Banking ( State Gazette
   of the Republic of Indonesia Year 1992 Number 31, Supplement to State Gazette of the Republic of Indonesia Number 3472) as amended by Act Number 10 Year 1998 (State Gazette of the Republic of Indonesia Year 1998 Number 182, Supplement to State Gazette of the Republic of Indonesia Number 3790);
2. Act Number 23 Year 1999 concerning Bank Indonesia (State
   Gazette of the Republic of Indonesia Year 1999 Number 66, Supplement to State Gazette of the Republic of Indonesia Number 3843) as amended by Act No 3 Year 2004 (State Gazette of the Republic of Indonesia Year 2004 Number 7, Supplement to State Gazette of the Republic of Indonesia Number 4357);

CHAPTER I
GENERAL PROVISIONS
Article 1
The terminology used in this Bank Indonesia Regulation is defined as follows:

1. Bank is Commercial Bank as referred to in Article 1 point 3 of Act Number 7 Year
   1992 concerning Banking as amended by Act Number 10 Year 1998, including foreign bank representative/branch offices;
2. Foreign Bank Branch/Representative Office is the branch of a Bank domiciled abroad
   and established under foreign laws or having a head office abroad, which is directly or indirectly responsible to the Bank’s head office and has an address and domiciled in Indonesia;
3. Sharia Business Unit, hereinafter referred to as UUS, is a work unit in the head office
   of a commercial bank which conducts business based on conventional principles and functioning as the head office of the sharia branch office and or the sharia unit, or a work unit in a Foreign Bank Branch Office performing a business activities under HAS DECREED:
   To enact : BANK INDONESIA REGULATION CONCERNING COMMERCIAL BANK DAILY REPORT.

conventional principles and functioning as the head office of the sharia sub branch office and or sharia unit;
4. Reporting Bank is a Bank’s office including the head office of banks incorporated as
an Indonesian Legal Body, a foreign bank representative/branch office and a UUS;
5. Commercial Bank Daily Report, hereinafter referred to as LHBU, is the report
prepared and submitted daily by a Reporting Bank to Bank Indonesia;
6. Money Market Information Center, hereinafter referred to as PIPU, is part of LHBU
processing result which provides information covering but not limited to Rupiahs and foreign currency money markets as well as other money market related information from other sources;
7. PIPU Subscribers are parties, other than the Bank, who may receive LHBU processing
result according to the regulations stipulated by Bank Indonesia;
8. PIPU usage agreement is a written agreement between Bank Indonesia and PIPU
Subscribers concerning PIPU usage where the terms and conditions are stipulated by Bank Indonesia;
9. Online report submission, hereinafter referred to as Online is reporting by sending or
transferring data directly to Bank Indonesia through a data communication network;
10. Offline report submission, hereinafter referred to as Offline is reporting by submitting
a diskette or other electronic data recording media to Bank Indonesia;
11. Inter Bank Money Market, hereinafter referred to as PUAB is borrowing activity in
Rupiahs or foreign currency among conventional banks having a time period of up to 1 (one) Year;

12. Sharia based Inter Bank Money Market, hereinafter referred to as PUAS, is a short
    term investment activity in Rupiahs among money market members based on Mudharabah principles.
13. Working Day is the working day of Bank Indonesia which supervises the Reporting
    Bank.
    CHAPTER II
    LHBU DATA PREPARATION
    Article 2
    (1) A Reporting Bank must prepare LHBU accurately and completely. (2) LHBU as referred to in paragraph (1) includes transactional and non transactional data. (3) Transactional data as referred to in paragraph (2) include :
    a. PUAB which is categorized as morning Rupiahs PUAB, afternoon Rupiahs PUAB, foreign currency PUAB and overseas PUAB; b. PUAS;
    c. Foreign exchange transaction; and
    d. Money market securities trading in secondary market; (4) Non transactional data as referred to in paragraph (2) include:
    a. end of day position of sales of non investment derivative transactions with certain parties; b. net open position;

c. balance sheet’s certain posts;
d. cash flow projection; e. quotation rate ; f. loan basic interest rates; g. loan interest rates; h. time deposit interests, savings deposit interests, and discount rates of certificates of deposits; and
i. deposit rates of Sharia Bank Mudharabah investments.
(5) LHBU preparation as referred to in paragraph (1) must refer to LHBU preparation system stipulated in a Bank Indonesia Circular Letter.
Article 3
(1) A Reporting Bank is responsible for the legitimacy, accuracy, completeness and timeliness of the LHBU submission. (2) A Reporting Bank must appoint a person in charge to prepare and submit LHBU to Bank Indonesia. (3) The appointment of a person in charge mentioned in paragraph (2) shall not decrease and or erase the responsibility of the Bank’s Board of Directors and or the head of Foreign Bank Representative/Branch Office. (4) In the event where the person in charge as referred to in paragraph (2) is replaced, the Reporting Bank must update the replacement.
CHAPTER III

LHBU SUBMISSION
Article 4
(1) A Reporting Bank must submit LHBU as referred to in Article 2 paragraph (3) with the form header every Working Day in real time or immediately after the transaction on the reporting date. (2) A Reporting Bank must submit LHBU as referred to Article 2 paragraph (4) with the form header every Working Day based on :
a. end of day position; b. projection; or
c. real data on reporting date.
(3) A Reporting Bank must submit interest quotation as referred to in Article 2 paragraph (4) letter e every time a quotation is made. (4) In the event that a Reporting Bank does not have any transaction and or any non transactional data, the Reporting Bank must still submit the form header. (5) LHBU submission deadline as referred to in paragraph (1) and paragraph (2) is stipulated in a Bank Indonesia Circular Letter. .
Article 5
In the event where the LHBU data submitted to Bank Indonesia contains errors, the Reporting Bank must submit LHBU correction within a time limit set forth in a Bank Indonesia Circular Letter.
Article 6

(1) A Reporting Bank must submit LHBU and or LHBU correction Online. (2) A Reporting Bank which due to a technical problem/disturbance fails to submit LHBU and or LHBU correction Online as referred to in paragraph (1) must submit a written announcement to Bank Indonesia concerning the technical problem immediately after the problem occurred on the same working day and signed by an authorized officer. (3) In the event that a technical problem or another problem occurs in the system and or the communication network of Bank Indonesia, Bank Indonesia will inform the Reporting Bank orally or in writing regarding this matter. (4) A Reporting Bank which fails to submit LHBU and or LHBU correction Online as referred to in paragraph (2) or due to a problem referred to in paragraph (3), must submit LHBU and or LHBU correction Offline together with the hard copy on the same Working Day.
Article 7
(1) A Reporting Bank will be considered not submitting LHBU or LHBU correction Online when LHBU and or LHBU correction had not been received by Bank Indonesia within the submission time frame stipulated in the Bank Indonesia Circular Letter. (2) A Reporting Bank will be considered not submitting LHBU or LHBU correction Offline when LHBU and or LHBU correction had not been received by Bank Indonesia on the working day as referred to in Article 6 paragraph (4).

Article 8
(1) A Reporting Bank which is considered not submitting LHBU and or LHBU correction as referred to in Article 7, must still submit the LHBU for foreign exchange transaction, cash flow projection, balance sheet’s certain posts and net foreign exchange position, and or the LHBU correction for foreign exchange transaction data. (2) LHBU and or LHBU correction submission procedure as referred to in paragraph (1) is stipulated in a Bank Indonesia Circular Letter.
Article 9
A Reporting Bank’s Obligation to prepare and submit LHBU and or LHBU correction as referred to in Article 2, Article 3, Article 4, Article 5, and Article 6 is set forth as follows:
a. beginning on the enactment date of this Bank Indonesia Regulation until May 13, 2005 : at least 2 (two) Working Days in a week; b. beginning on May 16, 2005 : every Working Day according to this Bank Indonesia Regulation.
Article 10
(1) The obligation to prepare as referred to in Article 2 and LHBU and or LHBU submissions as referred to in Article 5, Article 6 paragraph (1), and Article 6 paragraph (4) are exempted for Banks experiencing a force majeure which prohibits the Reporting Bank from preparing and submitting LHBU and or LHBU corrections.

(2) A Reporting Bank which is unable to submit LHBU and or LHBU corrections as referred to in paragraph (1) must immediately notify Bank Indonesia in writing with an explanation concerning the cause of the force majeure which is signed by an authorized officer. (3) Exemption as referred to in paragraph (1) is allowed only until the force majeure as referred to in paragraph (2) had been managed. (4) A written notification concerning the force majeure shall be submitted to Bank Indonesia.
CHAPTER IV
LHBU PROCESSING RESULT AND USERS
Article 11
(1) Bank Indonesia provides LHBU processing result for Reporting Banks and or PIPU Subscribers. (2) LHBU processing result consists of :
a. Information provided by PIPU in an aggregate form; and b. A Reporting Bank’s individual data as set forth by Bank Indonesia.
Article 12
(1) A Reporting Bank may receive information provided by PIPU in aggregate form and the concerned Reporting Bank’s individual data (2) A PIPU Subscriber may only receive information provided by PIPU concerning the LHBU processing result in the aggregate form.

Article 13
(1) To become a PIPU Subscriber as referred to in Article 12 paragraph (2) a candidates must submit a written application to Bank Indonesia. (2) In the event that the application as referred to in paragraph (1) is approved by Bank Indonesia, the candidate for PIPU Subscriber must sign a PIPU Usage Agreement with Bank Indonesia.
Article 14
(1) Bank Indonesia provides a certain amount of access right to LHBU system in Bank Indonesia for each Reporting Bank at no cost. (2) Bank Indonesia charges a certain fee to the Reporting Bank for any additional access right to LHBU system referred to in paragraph (1). (3) Bank Indonesia may charge the Reporting Bank for providing information as referred to in Article 12 paragraph (1). (4) Bank Indonesia provides the access right and information to PIPU Subscribers for a certain fee. (5) Reporting Banks and PIPU Subscribers are responsible for LHBU system access right given by Bank Indonesia.
CHAPTER V
S A N C T I O N S
Article 15

(1) A Reporting Bank which fails to submit an Online transactional data as referred to in Article 2 paragraph (3) within the time frame referred to in Article 4 paragraph (5) or Offline as referred to in Article 6 paragraph (4), shall be liable to a financial penalty of Rp250,000.00 (two hundred and fifty thousand rupiahs) for each non submission of the transactional data (2) A Reporting Bank which fails to submit an Online non transactional data as referred to in Article 2 paragraph (4) letter a, letter b, letter c, letter d, letter f, letter g, letter h, and letter i within the time frame as referred to in Article 4 paragraph (5) or Offline as referred to in Article 6 paragraph (4), shall be liable to a financial penalty of Rp250,000.00 (two hundred and fifty thousand rupiahs) for each non submission of the non transactional data. (3) A Reporting Bank which made an interest rate bid but did not submit the non transactional data on interest rate bid (quotation) referred to in Article 2 paragraph (4) letter e for each bid within the time frame as referred to in Article 4 paragraph (5) or Offline as referred to in Article 6 paragraph (4), shall be liable to a financial penalty of Rp250,000.00 (two hundred and fifty thousand rupiahs) for each non submitted quotation. (4) A Reporting Bank which fails to submit an Online form header LHBU as referred to in Article 4 paragraph (1), Article 4 paragraph (2), and Article 4 paragraph (4) within the time frame referred to in Article 4 paragraph (5) or Offline as referred to in
Article 6 paragraph (4), shall be liable to a financial penalty of Rp1,000,000.00 (one
million rupiahs) for each form.

(5) A Reporting Bank which prepares and submits LHBU data inaccurately, shall be liable to a financial penalty of Rp50,000.00 (fifty thousand rupiahs) for each mistake up to a maximum Rp2,000,000.00 (two million rupiahs) for each form.
Article 16
(1) Financial penalty as referred to in Article 15 shall be charged by Bank Indonesia by way of debiting the Reporting Bank’s Rupiahs current account at Bank Indonesia. (2) In the event that the debiting of the Reporting Bank’s Rupiahs current account at Bank Indonesia causes a negative balance in the current account, the Reporting Bank must make a payment in the amount of the penalty as referred to in paragraph (1).
Article 17
A Reporting Bank which violates Article 6 paragraph (1), Article 6 paragraph (2), Article 8, and Article 10 paragraph (2) shall be liable to an administrative sanction in the framework of Bank Guidance and Supervision in the form of a written warning.
Article 18
A PIPU Subscriber who fails to pay the PIPU usage fee shall be liable to the following sanction(s) :
a. written warning ; b. payment obligation according to PIPU Usage Agreement; and or
c. termination of PIPU Subscription.

CHAPTER VI
TRANSITIONAL PROVISIONS
Article 19
(1) PIPU Subscribers which have an agreement expiring on May 31, 2005 and intend to keep using PIPU must sign a new PIPU Usage Agreement referring to this regulation without having to submit an application as referred to in Article 13. (2) In the event that a PIPU Subscriber as referred to in paragraph (1) fails to sign the new PIPU Usage Agreement, Bank Indonesia will terminate its PIPU Subscriber Membership.
CHAPTER VII
CLOSING PROVISIONS
Article 20
Further implementation of this Bank Indonesia Regulation is stipulated in Bank Indonesia Circular Letter
Article 21
The provisions concerning sanction imposition as referred to in Article 5 shall come into force as at June 1, 2005.
Article 22
With the enactment of this Bank Indonesia Regulation, as at June 1, 2005:

a. Bank Indonesia Regulation Number 5/24/PBI/2003 dated October 31, 2003 concerning Money Market Information Centre; and b. Article 4 paragraph (1) and paragraph (2) and Article 9 of Bank Indonesia Regulation Number 3/3/PBI/2001 dated January 12, 2001 concerning Limitation of Rupiahs Transaction and Foreign Currency Loans by Bank are revoked and declared no longer valid.
Article 23
This Bank Indonesia Regulation shall come into force on the date of its enactment. Enacted in Jakarta On March 9, 2005

GOVERNOR OF BANK INDONESIA,
BURHANUDDIN ABDULLAH
STATE GAZZETTE OF REPUBLIC OF INDONESIA YEAR 2005 NUMBER 25 DPM/UKMI/DPD/DPNP

Unoffcial Translation
ELUCIDATION TO
BANK INDONESIA REGULATION
NUMBER: 7/ 10 /PBI/2005
CONCERNING
COMMERCIAL BANK DAILY REPORT (LHBU)
GENERAL
In Article 28 paragraph (1) of Act Number 23 year 1999 concerning Bank Indonesia as amended by Act Number 3 Year 2004, it is stipulated that banks must submit all reports, clarification and explanation according to the procedures stipulated by Bank Indonesia. The data and or information in the report, remarks, and explanation would be used, among others, in preparing banking statistic for the purpose of analyzing monetary economics as well as bank supervision and guidance. In order to support the updating of banking statistics and in order to monitor money market and banks’ financial condition it is necessary to have a bank daily report system which continuously shows bank financial conditions. In relation to the above matters, it is compulsory for banks to prepare a daily report accurately and completely and submit the report to Bank Indonesia in a real time and timely manner.
ARTICLE BY ARTICLE
Article 1
Self explanatory

Unoffcial Translation
Article 2
Paragraph (1)
Self explanatory
Paragraph (2)
Referred to as transactional data are data produced from the Reporting Bank’s transaction with another party as the counterpart. Referred to as non transactional data are data produced not from the Reporting Bank’s transaction with another party. Paragraph (3) Letter a Self explanatory Letter b Self explanatory Letter c Foreign Exchange Transaction is foreign currency transaction for tod/tom/spot, foreign currency transaction for forward, swap, option, and other derivatives transactions. Letter d Referred to as trading data of money market securities in the secondary market are transactional data of securities that currently are only in the form of Bank Indonesia Certificates, Certificates of Deposits and Commercial Papers.

Unoffcial Translation
Paragraph (4)
Letter a
Referred to as certain parties are parties as referred to in prevailing Bank Indonesia Regulation concerning Limitation on Bank Rupiah Transactions and Foreign Currency Loan Disbursement. Letter b Referred to as Net Open Position is Net Foreign Exchange Position as referred to in prevailing Bank Indonesia Regulation concerning Net Open Position. Letter c Self explanatory Letter d Self explanatory Letter e Self explanatory Letter f Self explanatory Letter g Self explanatory Letter h Self explanatory Letter i

Unoffcial Translation
Self explanatory
Paragraph (5)
Self explanatory
Article 3
Paragraph (1)
Self explanatory
Paragraph (2)
Referred to as person in charge is a designated officer authorized by the Reporting Bank to prepare and submit LHBU. Paragraph (3) Self explanatory Paragraph (4) Self explanatory
Article 4
Paragraph (1)
Referred to as Form header is the LHBU form containing at least information on bank code, report date, form number and number of records contained. Paragraph (2) Self explanatory Paragraph (3)

Unoffcial Translation
Self explanatory
Paragraph (4)
Self explanatory
Paragraph (5)
Self explanatory
Article 5
Self explanatory
Article 6
Paragraph (1)
Self explanatory
Paragraph (2)
Referred to as a technical disturbance/problem is a disturbance/problem which prohibits the Reporting Bank from submitting LHBU Online to Bank Indonesia, such as a disturbance/problem on the telecommunication network and or other causes. Paragraph (3) Referred to as a technical problem or other problems are problems which prohibit Bank Indonesia from receiving Online LHBU submissions, such as a disturbance/problem on the telecommunication network and or other causes. Paragraph (4)

Unoffcial Translation
Self explanatory
Article 7
Self explanatory
Article 8
Self explanatory
Article 9
The LHBU reporting system by a Reporting Bank as referred to in this Article is aimed to replace the PIPU reporting system by Banks which will be terminated on June 1, 2005. A transitional report is necessary during the trial run and parallel run activities in line with the aforementioned aim. In this transitional time, Reporting Banks will continue to submit reports through PIPU as well as LHBU, however LHBU sanctions are not enforced yet. In the trial run period, LHBU reports should be submitted at least 2 (two) working days in a week beginning on the effective date of this Bank Indonesia Regulation until May 13, 2005 and in parallel run period, LHBU report should be submitted every working day beginning on May 16 until May 31, 2005.
Article 10
Paragraph (1)

Unoffcial Translation
Force majeure is a condition which clearly prohibits the Reporting Bank from preparing and submitting LHBU or LHBU correction, e.g. fire, riot, war, sabotage and natural disasters such as earthquake and flood which are acknowledged by the local authorities or officials from relevant institutions. Paragraph (2) Self explanatory Paragraph (3) Referred to as managed force majeure is a condition in which the Reporting Bank is already able to perform operational activities therefore enabling it to prepare and submit LHBU and or LHBU correction to Bank Indonesia. Paragraph (4) Self explanatory
Article 11
Paragraph (1)
Self explanatory
Paragraph (2)
Referred to as individual data of Reporting Bank are the processed data or information on the Reporting Bank.
Article 12

Unoffcial Translation
Self explanatory
Article 13
Self explanatory
Article 14
Paragraph (1)
Referred to as access right is the right given by Bank Indonesia to Reporting Banks and or PIPU Subscribers in order to enable them to log into Bank Indonesia LHBU system. Paragraph (2) Self explanatory Paragraph (3) Self explanatory Paragraph (4) Self explanatory Paragraph (5) Self explanatory
Article 15
Paragraph (1)
Self explanatory
Paragraph (2)

Unoffcial Translation
Self explanatory
Paragraph (3)
Self explanatory
Paragraph (4)
A penalty could be applied on violations due to non submissions of transactional data and or non transactional data as well as due to non submissions of form header. Paragraph (5) Self explanatory
Article 16
Self explanatory
Article 17
Self explanatory
Article 18
Self explanatory
Article 19
Self explanatory
Article 20

Unoffcial Translation
The main provisions stipulated in the Bank Indonesia Circular Letter are, among others:
a. Guidelines for LHBU preparation; b. LHBU data submission procedures;
c. LHBU data submission time frame;
d. PIPU Subscription procedures; e. Procedures for acquiring information on LHBU Processing result; f. Cost components charged to PIPU subscribers and the payment procedure; g. Other related items.
Article 21
Self explanatory
Article 22
Self explanatory
Article 23
Self explanatory
SUPPLEMENT TO STATE GAZETTE OF REPUBLIC OF INDONESIA YEAR 2005 NUMBER 4483