Circular Letter No. 7/11/DPM: Ninth Alteration on Interest Rates for Third Party Deposits and Interbank Money Market under Government Guarantee

Unofficial Translation
No. 7/11/DPM Jakarta, March 31, 2005
CIRCULAR LETTER
To
ALL COMMERCIAL BANKS
WITHIN INDONESIA
Concerning : The Ninth Alteration on Bank Indonesia Circular Letter No. 6/20/DPM Dated April 26, 2004 Concerning the Interest Rate for Third Party Deposit and Interbank Money Market under Government Guarantee In reference to Article 3 of Bank Indonesia Regulation Number 6/11/PBI/2004 dated April 12, 2004 concerning Blanket Guarantee Interest Rate for Third Party Deposit and Interbank Money Market (State Gazette of the Republic of Indonesia of 2004 No. 39, Supplement to the State Gazette of the Republic of Indonesia No.4383), as amended by Bank Indonesia Regulation Number 7/11/PBI/2005 dated March 31, 2005 (State Gazette of the Republic of Indonesia of 2005 Number 34, Supplement to the State Gazette of the Republic Indonesia Number 4491), it is deemed necessary to alter several points in Circular Letter Number 6/20/DPM dated April 26, 2004 concerning the Interest Rate for Third Party Deposit and Interbank Money Market under Government Guarantee, as follows:

1. I.B.2. …

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1. I.B.2. is altered so that it shall be read as follows:
   “2. The Maximum Margin for Third Party Deposit Interest Rate is set at:
   Period of Deposit Margin (basis point)
   1 month Added by 0 (zero)
   3 months Added by 5 (five)
   6 months Added by 10 (ten)
   12 months Added by 25 (twenty five)
   24 months Added by 55 (fifty five) of 3 (three) months SBI weighted average discount rate on the last auction”
2. Point I.B.4. is altered to be read as follows:
   “4. The maximum margin for Third Party Deposit interest rate in US Dollars foreign currency under Government Guarantee for the period of 1, 3, 6, and 12 months is each added by 2 (two) basis points, while the margin for the period of 24 months is added by 1 (one) basis point above the average deposited interest rate in US Dollars foreign currency at Jakarta Inter Bank Offered Rates (JIBOR) member banks selected by Bank Indonesia 1 (one) month earlier.”
3. Point II.B. is altered to be read as follows:
   “B. Maximum PUAB Interest Rate. a. The maximum PUAB interest rate under Government Guarantee in Rupiahs is set at 0 (zero) basis point from the weighted average morning overnight
   PUAB …....

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PUAB interest rate in Rupiahs at JIBOR member banks selected by Bank Indonesia 1 (one) month earlier. b. The maximum PUAB interest rate in US Dollars foreign currency under Government guarantee is set at 173 (one hundred and seventy three) basis points below the weighted average overnight PUAB interest rate in US Dollars foreign currency at JIBOR bank members selected by Bank Indonesia 1 (one) month earlier.” The provisions in this Circular Letter shall come into force on March 31, 2005. 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, BUDI MULYA DIRECTOR OF MONETARY MANAGEMENT