Regulatory Alerts2010-07-06
External Circular Number 15/30/DPM on Amendment to Circular of Bank Indonesia Number 12/16/DPM dated 6 July 2010 on Criteria and Requirements for Securities, Participants, and Intermediaries in Monetary Operations
Bank Indonesia issued External Circular Number 15/30/DPM to amend its 2010 circular by adding Bank Indonesia Deposit Certificates (SDBI) as an eligible security for monetary operations. The regulation defines SDBI as short-term rupiah debt instruments tradable only between banks and mandates a minimum remaining tenure of two business days for use in open market operations and lending facilities. Furthermore, the circular establishes that SDBI carries a zero percent haircut, sets pricing mechanisms based on discount rates, and specifies conditions for early redemption in cases of settlement failures or non-bank transactions.
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