Circular Letter No. 6/32/DPM Altering Interest Rate Margins for Deposits and Inter Bank Money Market Under Government Guarantee

Unofficial Translation
No. 6/ 32 /DPM Jakarta July 30, 2004
CIRCULAR LETTER
To
ALL COMMERCIAL BANKS
IN INDONESIA
Concerning : An Alteration on Bank Indonesia Circular Letter No. 6/20/DPM Dated April 26, 2004 on the Interest Rate for Deposit and Inter Bank Money Market Under Government Guarantee In reference to Article 3 of Bank Indonesia Regulation Number 6/11/PBI/2004 dated April 12, 2004 concerning the Blanket Guarantee Interest Rate For Deposits And Interbank Money Market. It is deemed necessary to alter several points in Circular Letter Number 6/20/DPM dated April 26, 2004 concerning the Interest Rate for Deposit and Inter Bank Money Market Under Government Guarantee, so that it shall be read as follows:

1. Point I.B.2 is altered so that it shall be read as follows:
   ”2. The Interest Rate Margin for Deposit is set at:
   Saving Time Margin (Basis Point)
   1 month Subtracted by 4 (four)
   3 months Added by 1 (one)
   6 months Subtracted by 6 (six)
   12 months Added by 21 (twenty one)
   24 months Added by 51 (fifty one) from the Three-months SBI weighted averaged discount rate on the last auction.”

Unofficial Translation
2. Point I.B.4 is altered so that it shall be read as follows:
“4. “The interest rate margin for deposit under Government guarantee in US Dollars foreign exchange for the period of 1, 3, 6, 12, and 24 months shall each be added by 3 (three) basis points above the weighted averaged demand deposits interest rate in US Dollar foreign exchange at the Jakarta Inter Bank Offered Rates (JIBOR) member banks selected by Bank Indonesia within a specific time limit, 1 (one) month earlier.”
3. Point II.B is altered to be read as follows:
“B. The PUAB Interest Rate Margin a. The PUAB interest rate margin under Government Guarantee is set at 23 (twenty three) basis points above the weighted average morning overnight PUAB interest rate in Rupiahs at JIBOR member banks selected by Bank Indonesia a (one) month earlier. b. The PUAB interest rate margin in US Dollars foreign currency under Government guarantee is set at 24 (twenty four) basis points below the weighted average morning overnight PUAB interest rate in US Dollars foreign exchange at JIBOR member banks selected by Bank Indonesia 1 (one) month earlier.” The provisions in this Circular Letter shall come into force since July 30, 2004 For the public to be informed, it is ordered that this Circular Letter be promulgated in the State Gazette of the Republic of Indonesia. Kindly be informed. BANK INDONESIA, Signed BUDI MULYA THE DIRECTORATE OF MONETARY MANAGEMENT