Bank Indonesia Regulation No. 7/21/PBI/2005 Amendment To Bank Indonesia Regulation Number 5/15/PBI/2003 Concerning The Short-term Funding Facility For Commercial Banks

BANK INDONESIA REGULATION
NUMBER 7/21/PBI/2005
CONCERNING
AMENDMENT TO BANK INDONESIA REGULATION NUMBER 5/15/PBI/2003 CONCERNING THE SHORT-TERM FUNDING FACILITY FOR COMMERCIAL BANKS THE GOVERNOR OF BANK INDONESIA, Considering: a. whereas a facility for resolving short-term funding difficulties may be extended by Bank Indonesia to a bank insofar as it holds collateral in accordance with the applicable regulatory provisions; b. whereas for calculation of interest charges on a Short-Term Funding Facility, it is necessary to have the latest data;
c. now therefore, improvements are needed to the regulatory
provisions concerning the Short-Term Funding Facility as referred to in Bank Indonesia Regulation Number 5/15/PBI/2003 concerning the Short-Term Funding Facility; In view of: 1. Act Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Number 31 of 1992, Supplement to the State Gazette of the Republic of Indonesia Number 3472), as amended by Act Number 10 of 1998 (State Gazette of the Republic of Indonesia Number 182 of 1998, Supplement to the State Gazette of the Republic of Indonesia Number 3790);
2. Act Number 23 of 1999 concerning Bank Indonesia (State
Gazette of the Republic of Indonesia Number 66 of 1999, Supplement ...

• 2 -
  Supplement to the State Gazette of the Republic of Indonesia Number 3843) as amended by Act Number 3 of 2004 (State Gazette of the Republic of Indonesia Number 7 of 2004, Supplement to the State Gazette of the Republic of Indonesia Number 4357); HAS DECREED:
  To enact: THE BANK INDONESIA REGULATION CONCERNING AMENDMENT TO BANK INDONESIA REGULATION NUMBER 5/15/PBI/2003 CONCERNING THE SHORT-TERM FUNDING FACILITY FOR COMMERCIAL BANKS.
  Article I
  A number of provisions in Bank Indonesia Regulation Number 5/15/PBI/2003 (State Gazette of the Republic of Indonesia Number 99 of 2003, Supplement to the State Gazette of the Republic of Indonesia Number 4317) are hereby amended as follows:

1. The elucidation to Article 3 is amended as set forth in the elucidation and
   the provisions of Article 3 are amended to read as follows:
   Article 3
   A Bank may use FPJP insofar as it holds high quality, liquid collateral with minimum value at the amount of FPJP received.
2. The provisions of Article 13 paragraph (2) and paragraph (3) are hereby
   amended so that Article 13 reads as follows:
   (1) Bank ...

• 3 -
  (1) Bank Indonesia shall charge Banks interest for use of the FPJP. (2) Interest charges for FPJP as referred to in paragraph (1), including any extension thereof, shall be set at:
  a. the Interbank Money Market interest rate plus a specified margin; or b. the SBI discount rate plus a specified margin, whichever is higher. (3) Determination of the Interbank Money Market interest rate or SBI discount and the specified margin as referred to in paragraph (2) shall be stipulated further in a Circular Letter of Bank Indonesia.
  Article II
  This Bank Indonesia Regulation shall come into force on the date of its enactment. Enacted in Jakarta Dated August 3, 2005 THE GOVERNOR OF BANK INDONESIA, BURHANUDDIN ABDULLAH STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 68 OF 2005 DPM/DPNP LEMBARAN NEGARA REPUBLIK NOMORDPNP/DPM