Bank Indonesia Regulation No. 8/23/PBI/2006 Amending Statutory Reserve Rules for Sharia Commercial Banks

Unofficial Translation
BANK INDONESIA REGULATION
NUMBER 8/23/PBI/2006
CONCERNING
AMENDMENT TO BANK INDONESIA REGULATION NUMBER 6/21/PBI/2004 CONCERNING STATUTORY RESERVES IN RUPIAH AND FOREIGN CURRENCY FOR COMMERCIAL BANKS CONDUCTING BUSINESS BASED ON SHARIA PRINCIPLES THE GOVERNOR OF BANK INDONESIA, Considering : a. whereas statutory reserves as one of monetary instruments may be adjusted to bank liquidity conditions, bank capacity, and the policy direction of Bank Indonesia from time to time; b. whereas in order to safeguard bank liquidity, to give assurance on statutory reserves to be maintained, and to make it more comprehensible, it is necessary to adjust the calculation of financing to deposit ratio to determine the amount of additional statutory reserves for commercial banks conducting business based on sharia principles;
c. whereas pursuant to the considerations set forth above it is
deemed necessary to improve stipulations concerning statutory reserves in rupiah and foreign currency for commercial banks conducting business based on sharia principles in a Bank Indonesia Regulation. In view …

In view of : 1. Act Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Number 31 of 1992, Supplement of the State Gazette of the Republic Indonesia Number 3472) as amended by Act Number 10 of 1998 (State Gazette of the Republic of Indonesia Number 182 of 1998, Supplement of 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 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 : BANK INDONESIA REGULATION CONCERNING AMENDMENT TO BANK INDONESIA REGULATION NUMBER 6/21/PBI/2004 CONCERNING STATUTORY RESERVES IN RUPIAH AND FOREIGN CURRENCY FOR COMMERCIAL BANKS CONDUCTING BUSINESS BASED ON SHARIA PRINCIPLES
Chapter I …

Chapter I
Provisions in Article 11 of Bank Indonesia Regulation Number 6/21/PBI/2004 concerning Statutory Reserves in Rupiah and Foreign Currency for Commercial Banks Conducting Business Based on Sharia Principles (State Gazette of the Republic of Indonesia Number 73 of 2004, Supplement to the State Gazette of the Republic of Indonesia Number 4404) are amended to read as follows.
Article 11
(1) Rupiah Financing to rupiah Deposit ratio shall be calculated by comparing total Financing in rupiah to Deposits in rupiah at the end of the reporting period of the 2 (two) previous reporting periods. (2) Data on the Financing in rupiah as referred to in paragraph (1) shall be obtained from Financing data submitted by Bank to Bank Indonesia in accordance with stipulations concerning Commercial Bank Periodic Reports applicable for banks conducting business based on sharia principles. (3) Data on the Deposits in rupiah as referred to in paragraph (1) shall be obtained from data on demand deposits, savings deposits, time deposits, and other forms of the kind which are submitted by Bank to Bank Indonesia in accordance with stipulations concerning Commercial Bank Periodic Reports applicable for banks conducting business based on sharia principles.

Chapter II
This Bank Indonesia Regulation shall come into force on the date of its enactment. Enacted in Jakarta Dated October 5, 2006 GOVERNOR OF BANK INDONESIA, BURHANUDDIN ABDULLAH STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 80 OF DPbS

ELUCIDATION
TO
BANK INDONESIA REGULATION
NUMBER 8/23/PBI/2006
CONCERNING
AMENDMENT TO BANK INDONESIA REGULATION NUMBER 6/21/PBI/2004 CONCERNING STATUTORY RESERVES IN RUPIAH AND FOREIGN CURRENCY FOR COMMERCIAL BANKS CONDUCTING BUSINESS BASED ON SHARIA PRINCIPLES GENERAL REVIEW As one of monetary instruments, policy on statutory reserves may be adjusted from time to time in consistent with bank liquidity conditions, bank capacity in exercising its intermediary function, and the policy direction of Bank Indonesia. In line, in order to make it more comprehensible and to give assurance on the statutory reserves to be maintained by commercial banks conducting business based on sharia principles, it is deemed necessary to improve stipulations concerning the financing to deposit ratio.
ARTICLE …

ARTICLE BY ARTICLE
Chapter I
Article 11
Paragraph (1)
The formula for calculation of rupiah Financing to rupiah Deposit ratio is as follows. Total Financing in rupiah at the end of the reporting period of the 2 (two) previous reporting periods --------------------------------------------------------------- x 100% Total Deposits in rupiah at the end of the reporting period of the 2 (two) previous reporting periods The aforementioned rupiah Financing to rupiah Deposit ratio shall be based on Bank Financing and Deposits as follows. a. The percentage of Statutory Reserves in rupiah for the reporting period from the 1 st day through the 7 th day of the month shall be determined by using ratio obtained from Financing in rupiah and Deposits in rupiah on the 23 rd of the previous month; b. The percentage of Statutory Reserves in rupiah for the reporting period from the 8 th through the 15 th of the month shall be determined by using ratio obtained from Financing in rupiah and Deposits in rupiah at the end of the previous month;
c. The percentage ...

c. The percentage of Statutory Reserves in rupiah for the
reporting period from the 16 th through the 23 rd of the month shall be determined by using ratio obtained from Financing in rupiah and Deposits in rupiah on the 7 th of the same month; d. The percentage of Statutory Reserves in rupiah for the reporting period from the 24 th through the end of the month shall be determined by using ratio obtained from Financing in rupiah and Deposits in rupiah on the 15 th of the same month. Paragraph (2) Self-explanatory. Paragraph (3) Self-explanatory.
Chapter II
Self-explanatory.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 4649