Regulatory Alerts2011-05-09
Bank Indonesia Circular Letter No. 13/13/DPM on Amendments to Open Market Operation Provisions
Bank Indonesia amends its Open Market Operation regulations by extending the minimum holding period for Sertifikat Bank Indonesia (SBI) from one month to six months before any secondary transactions. The updated provisions establish specific rules for second-leg transactions, sub-registry administration, and early redemption requirements for Term Deposits, including associated cost calculations. Violations of the new holding period mandate are subject to written reprimands and daily financial penalties ranging from ten million to one hundred million rupiah, calculated at 0.01 percent of the non-compliant transaction's nominal value.
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