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2011-05-09

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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Sumber Data Legal Information Division, Department of Legal Affairs

5/9/2011 11:12 AM

Judul Bank Indonesia Circular Letter No.13/13/DPM Dated May 9, 2011 concerning Amendment to Bank Indonesia Circular Letter No.12/18/DPM dated July 7, 2010 concerning Open Market Operation

Peraturan Bank Indonesia

Moneter dan Pasar Keuangan

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Bank Indonesia Circular Letters

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Regulation :

Bank Indonesia Circular Letter No.13/13/DPM Dated May 9, 2011 concerning Amendment to Bank Indonesia Circular Letter No.12/18/DPM dated July 7, 2010 concerning Open Market Operation

Effective date :

13 May 2011

Summary :

The refinement of the provisions is substantially made to accommodate the following:

The refinement of the provision on minimum SBI holding period. The refinement of provision on Term Deposit including the early redemption requirements and the calculation of costs of Term Deposit early redemption.

As from May 13, 2011, the provision on the minimum SBI holding period stipulating the minimum SBI holding period before being transacted again with other parties has been amended, from initially 1 month (28 calendar days) to 6 months (182 calendar days). Several provisions related 6-month SBI holding period are as follows:

Any party which intends to conduct transaction on SBI must have held the SBI for a minimum period of 6 months (182 calendar days). The transactions include, among other things, repo, outright sale, grant and pledge transactions. Transactions with Bank Indonesia Transactions with Bank Indonesia are excluded from the provision on 6-month holding period. Therefore, transactions on SBI may be conducted with Bank Indonesia prior to 6-month (182 calendar days) holding. Transaction with second leg :

There is a transfer of holding (such as, among other things, repo sell and buy-back)

In order to comply with the provision on 6-month holding period, the transaction is to be conducted by no earlier than 6 months (182 calendar days). Transactions on the SBI may be conducted again:

In the event that the second leg is successfully conducted, transactions on the SBI may be conducted again after a minimum holding period of 6 months (182 calendar days) as from the settlement of the second leg transaction. In the event that the second leg transaction fails and serves as an outright transaction, transactions on the SBI can be conducted within 6 months (182 calendar days) as from the transfer of holding, namely as from the settlement of the first leg transaction.

There is no transfer of holding (such as, among other things, repo collateralized borrowing, pledge and securities lending and borrowing)

In the event that the transaction has become due and the settlement of the second leg transaction is successfully conducted, the SBI holder may immediately conduct transaction again on the SBI. However, in the event that the aforementioned transaction is a part of a transaction conducted prior to the coming into effect of the provision on 6-month holding period, transactions on the SBI may be conducted again after 6 months (182 calendar days) as from the SBI holding.

Sub-Registry as the party appointed to support the administration of SBI held by its customers shall be required to administer the SBI held by its customers by complying with the provisions on 6-month holding period. Transaction constituting a part of a transaction conducted prior to the coming into effect of the provision 6-month SBI holding period shall be excluded from the said provision until the transaction becomes due. However, the transaction must at any time comply with the provisions of point II.9.a.1) of Bank Indonesia Circular Letter Number 12/18/DPM dated July 7, 2010 concerning Open Market Operation. In relation to the violation of the provision on minimum holding period, SBI holder or Sub-Registry may be subject to sanctions in the form of written reprimand and financial penalty in the amount of 0.01% of the nominal value of the SBI transaction not meeting the requirements, in a minimum amount of Rp10,000,000.00 (ten million rupiah) and a maximum amount of Rp100,000,000.00 (one hundred million rupiah) per day. In order to qualify for submitting request for early redemption of Term Deposit, the Term Deposit concerned must be Term Deposit issued with a tenure not less than 1 month, and for such purpose, the relevant OMO Participant shall be subject to cost with the following calculation:

Lampiran Attachments

Lampiran 1 Bank Indonesia Circular Letter No.13/13/DPM

Lampiran 2 FAQ Bank Indonesia Circular Letter No.13/13/DPM

Lampiran 3

Lampiran 4

Lampiran 5

Lampiran 6

Lampiran 7

Lampiran 8

Lampiran 9

Lampiran 10

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Halaman ini terakhir diperbarui 1/27/2021 9:15 PM

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