2018-04-20
Added · Updated
Bank Indonesia issued this regulation to establish the operational mechanisms for conducting conventional and Sharia-compliant open market operations. It defines key terms, participant eligibility, and specific procedures for issuing and settling Bank Indonesia Certificates and related securities. The document details tender processes, bid determination, settlement requirements, and restrictions on trading to ensure effective monetary policy implementation.
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REGULATION OF MEMBERS OF BOARD OF GOVERNORS NUMBER 20/6/PADG/2018 ON IMPLEMENTATION OF OPEN MARKET OPERATION BY THE BLESSINGS OF GOD THE ALMIGHTY REGULATION OF THE BOARD OF GOVERNORS OF BANK INDONESIA Considering : a. that to implement the monetary policy to achieve Bank Indonesia's objective, Bank Indonesia exercises monetary control, among others through monetary operation in a conventional manner and in adherence to sharia principle; b. that in implementing the monetary operation set forth in letter a, Bank Indonesia needs to regulate mechanism of open market operation implementation in a conventional manner and in adherence to sharia principles;
c. that based on the foregoing consideration in letter a and
letter b, it is necessary to establish a Regulation of Members of the Board of Governors on Implementation of Open Market Operation; Observing : Regulation of Bank Indonesia Number 20/5/PBI/2018 on Monetary Operation (State Gazette of the Republic of Indonesia of 2018 Number 60, Supplement to State Gazette of the Republic of Indonesia Number 6198);
HAS DECIDED:
To issue : REGULATION OF MEMBERS OF THE BOARD OF GOVERNORS ON IMPLEMENTATION OF OPEN MARKET OPERATION.
CHAPTER I
GENERAL PROVISIONS
Article 1
In this Regulation of Members of the Board of Governors:
and/or foreign currency market conducted by Bank Indonesia with Banks and/or other parties for Monetary Operation in a conventional manner and under sharia principle.
9. Conventional Open Market Operation, hereinafter referred
to as Conventional OMO, means transactional activities in the money market and/or foreign exchange market conducted by Bank Indonesia with commercial banks and/or other parties.
10. Sharia Open Market Operation, hereinafter referred to as
Sharia OMO, means transactional activities in the money market in adherence to sharia principle and/or foreign exchange market conducted by Bank Indonesia with SCB, SBU, and/or other parties.
11. OMO Participant means Conventional OMO participant
and Sharia OMO participant.
12. Conventional OMO participant means any commercial
bank, which has obtained permit from Bank Indonesia as an OMO participant as specified in the provisions of Bank Indonesia for monetary operation participation.
13. Sharia OMO participant means any SCB and/or SBU,
which has obtained permit from Bank Indonesia as an OMO participant as specified in the provisions of Bank Indonesia for monetary operation participation.
14. Intermediary Institution means any broker in rupiah and
foreign exchange market and securities company appointed by the Finance Minister of the Republic of Indonesia as the main dealer, which has obtained permit from Bank Indonesia as an intermediary institution as specified in the provisions of Bank Indonesia for monetary operation participation.
15. Bank Indonesia Certificate, hereinafter referred to as SBI,
means securities in rupiah currency issued by Bank Indonesia as acknowledgment of short term indebtedness.
16. Sharia Bank Indonesia Certificate, hereinafter referred to
as SBIS, means securities under sharia principle in
rupiah currency issued by Bank Indonesia with a short term.
17. Bank Indonesia Deposit Certificate, hereinafter referred to
as SDBI, means securities in rupiah currency issued by Bank Indonesia as acknowledgment of short term indebtedness, which may only be traded between commercial banks.
18. Bank Indonesia Securities in Foreign Currency,
hereinafter referred to as Foreign Exchange SBBI, means securities in foreign currency issued by Bank Indonesia as acknowledgment of short term indebtedness.
19. Sovereign Securities, hereinafter referred to as SBN, mean
sovereign debt securities and sovereign sharia securities.
20. Sovereign Debt Securities, hereinafter referred to as SUN,
means sovereign debt securities as set forth in the Law on sovereign debt securities.
21. Sovereign Sharia Securities, hereinafter referred to as
SBSN, means sovereign sharia securities as set forth in the Law on sovereign sharia securities.
22. Securities Repurchase Agreement Transaction for
Conventional OMO, hereinafter referred to as Conventional OMO Repo Transaction, means any securities sale transaction by a Conventional OMO Participant to Bank Indonesia, with mandatory repurchase by the Conventional OMO Participant at the agreed price and within the agreed period.
23. Securities Repurchase Agreement Transaction for Sharia
OMO, hereinafter referred to as Sharia OMO Repo Transaction, means any securities sale transaction by a Sharia OMO Participant to Bank Indonesia, with mandatory repurchase by the Sharia OMO Participant at the agreed price and within the agreed period.
24. Securities Reverse Repo Transaction for Conventional
OMO, hereinafter referred to as Conventional OMO Reverse Repo Transaction, means any securities purchase transaction by a Conventional OMO Participant from Bank Indonesia, with mandatory resale by the
Conventional OMO Participant at the agreed price and within the agreed period.
25. Securities Reverse Repo Transaction for Sharia OMO,
hereinafter referred to as Sharia OMO Reverse Repo Transaction, means any securities purchase transaction by a Sharia OMO Participant from Bank Indonesia, with mandatory resale by the Sharia OMO Participant at the agreed price and within the agreed period.
26. Conventional OMO Term Deposit, hereinafter referred to
as Conventional OMO Term Deposit Transaction, means a Conventional OMO Participant’s rupiah and/or foreign currency term deposit with Bank Indonesia.
27. Sharia OMO Term Deposit, hereinafter referred to as
Sharia OMO Term Deposit Transaction, means a Sharia OMO Participant’s foreign currency term deposit with Bank Indonesia.
28. Checking Account means the Bank's Checking Account
with Bank Indonesia in rupiah and/or foreign currency.
29. Securities Account means the Bank's securities account
in BI-SSSS in rupiah and/or foreign currency administered in Bank Indonesia for ownership record and settlement of securities transactions, transactions with Bank Indonesia, and/or financial market transactions.
30. Sub-Registry means Bank Indonesia and parties who
meet the requirements and are approved by Bank Indonesia as BI-SSSS participants to perform administrative functions for customers.
31. Bank Indonesia-Real Time Gross Settlement System,
hereinafter referred to as BI-RTGS System, means BIRTGS System as specified in the provisions of Bank Indonesia for transaction implementation, securities administration, and outright fund settlement.
32. Bank Indonesia-Scripless Securities Settlement System,
hereinafter referred to as BI-SSSS, means BI-SSSS as specified in the provisions of Bank Indonesia for transaction implementation, securities administration, and outright fund settlement.
same counterpart at an established and agreed rate on a transaction date.
42. Bank Indonesia Sale Swap Transaction means spot
purchase of foreign currency against rupiah by Bank Indonesia, followed by forward resale of foreign exchange by Bank Indonesia simultaneously, with the same counterpart at an established and agreed rate on a transaction date.
43. Standard Settlement Instruction means a certain
guideline for fund transfer through means of telecommunication, which among others contains Correspondent Bank name, account number, clearing code, and Society for Worldwide Interbank Financial Telecommunication (SWIFT) code.
44. Forward Transaction means sale or purchase of foreign
currency against rupiah where the fund is delivered more than 2 (two) business days after a transaction date.
45. Bank Indonesia Sale Forward Transaction means sale of
foreign currency against rupiah by Bank Indonesia where the fund is delivered more than 2 (two) business days after a transaction date.
46. Bank Indonesia Purchase Forward Transaction means
purchase of foreign currency against rupiah by Bank Indonesia where the fund is delivered more than 2 (two) business days after a transaction date.
47. Jakarta Interbank Spot Dollar Rate, hereinafter referred
to as JISDOR, means the representation of US dollar spot rate against rupiah from interbank transactions in the domestic market, including Bank transactions with any bank overseas, whose transaction data is accessible through Monitoring System of Foreign Currency against Rupiah as specified in the provisions of Bank Indonesia for foreign currency against rupiah transactions between banks and domestic parties.
48. Securities Settlement means debiting and crediting of
Securities Account for administration.
(1) Bank Indonesia will announce SBI tender plan and its changes at least before the window time through BI-ETP Sytem, LHBU System, and/or any other means. (2) The SBI tender plan announcement set forth in paragraph (1) shall contain the following information:
a. means of transactions; b. tender day and date;
c. window time;
d. period; e. maturity date; f. tender method; g. indicative target, if it is a variable rate tender; h. SBI discount rate, if it is a fixed rate tender;
i. date and time of settlement; and/or
j. other information.
Section 2
SBI Tender Bid Submission
Article 5
A Conventional OMO Participant, directly and/or through an Intermediary Institution, will submit SBI tender bid to Bank Indonesia through BI-ETP System within the determined window time.
Article 6
(1) The submitted SBI tender bid set forth in Article 5 includes the following information:
a. nominal value, for fixed rate tender; or b. nominal value and discount rate, for variable rate tender, for each term of SBI to be issued. (2) A Conventional OMO Participant may apply for a bid in a minimum nominal value of Rp1,000,000,000.00 (one billion rupiah) and further at the multiple of Rp100,000,000.00 (one hundred million rupiah).
(3) If SBI is conducted in variable rate tender method, any bid for discount rate shall be submitted at the multiple of 0.01% (zero point zero one percent).
Section 3
Determination of SBI Successful Bidder
Article 7
(1) If SBI is conducted in fixed rate tender method, the successful bidder will be determined through the calculation of:
a. nominal value of the bid submitted by a Conventional OMO Participant, which is won entirely; or b. if required, nominal value of the bid submitted by a Conventional OMO Participant may be won partially in proportion according to the calculation of Bank Indonesia, with the smallest SBI nominal rounding of Rp1,000,000.00 (one million rupiah). (2) If SBI tender is conducted in variable rate tender method, the successful bidder will be determined through the following:
a. Bank Indonesia will determine the highest accepted discount rate or Stop Out Rate (SOR); and b. Bank Indonesia will determine the successful bid as follows:
SBI nominal rounding of Rp1,000,000.00 (one million rupiah).
Article 8
Bank Indonesia may determine that there is no successful bidder in an SBI tender.
Section 4
SBI Tender Result Announcement
Article 9
Bank Indonesia will announce SBI tender result it has conducted the successful bidder determination process under the following provisions:
a. personally to the successful bidder through BI-ETP System and/or any other means, containing the nominal value, discount rate, the won SBI cash value, and/or any other information; and b. entirely through BI-ETP System, LHBU System, and/or any other means, containing the weighted average of SBI discount rate, Stop Out Rate (SOR), nominal value of all incoming bids, nominal value of all won bid, and/or any other information.
Section 5
SBI Settlement
Article 10
(1) Bank Indonesia will conduct SBI tender result settlement within 1 (one) Business Day after SBI tender result announcement. (2) A Conventional OMO Participant must have fund in its rupiah Checking Account adequate for SBI tender result settlement.
Article 11
(1) Bank Indonesia will conduct SBI tender result Fund Settlement by debiting the a Conventional OMO Participant’s rupiah checking account in an amount equal to the SBI cash value and Securities Settlement by crediting the Securities Account of a Conventional OMO Participant in an amount equal to the SBI nominal value. (2) The SBI cash value set forth in paragraph (1) is calculated based on true discount with the following formula:
Discount Value = Nominal Value – Cash Value SBI Cash Value = Nominal Value x 360 360+(Discount Rate x Term) Note:
Nominal Value = the won SBI nominal value Discount Rate = the won discount rate Term = number of days calculated 1 (one) calendar days from SBI tender settlement date until the maturity date (3) Example of calculation of SBI cash value and discount value set forth in paragraph (2) is specified in Appendix I which constitutes an inseparable part hereof. (4) Fund Settlement and Securities Settlement set forth in paragraph (1) is made through gross to gross and DVP mechanisms.
Article 12
(1) If fund in a Conventional OMO Participant’s rupiah Checking Account is inadequate to meet settlement obligation until before the cut-off warning period of BIRTGS System resulting in SBI tender settlement failure, BI-SSSS will automarically cancel the SBI tender transaction won by the Conventional OMO Participant. (2) If, in the same SBI tender, there is more than 1 (one) SBI transaction cancellation as set forth in paragraph (1), then to calculate the imposed temporary suspension from
participating in CMO activities, the transaction cancellation will be counted 1 (one) time.
Article 13
(1) SBI redemption settlement will be conducted on the SBI maturity date. (2) BI-SSSS will automatically make payment settlement from BI-RTGS System is opened until before the cut-off warning period of BI-RTGS System. (3) Bank Indonesia will redeem any mature SBI based on SBI ownership record in BI-SSSS within 1 (one) Business Day prior to the SBI maturity date. (4) If, after a transaction is made, SBI maturity date is determined as a holiday by the government, the SBI redemption settlement will be made on the following Business Day, without calculating any extra discount for such holiday. (5) Bank Indonesia will redeem SBI on its maturity date by:
a. crediting an SBI holder’s rupiah Checking Account in an amount equal to the nominal value of the mature SBI; and b. debiting an SBI holder’s Securities Account in an amount equal to the nominal value of the mature SBI.
Section 6
Minimum Holding Period
Article 14
Within 1 (one) week, namely 7 (seven) calendar days as from the purchase settlement date, an SBI holder may not transact its SBI with any other party.
Article 15
The prohibition from transacting the SBI held with any other party within 1 (one) week or 7 (seven) calendar days set forth in Article 14 shall not apply to SBI transactions by a Conventional OMO Participant and Bank Indonesia.
Article 16
Sub-Registry must administer SBI of its customers by fulfilling the provisions set forth in Article 14 and Article 15.
Article 17
(1) Bank Indonesia will conduct indirect supervision and/or examination of SBI transaction limitation for 1 (one) week or 7 (seven) calendar days as from SBI ownership by a Conventional OMO Participant and Sub-Registry. (2) In the event any breach of the SBI transaction limitation set forth in paragraph (1) is indicated, Bank Indonesia will deliver a confirmation request letter to a Conventional OMO Participant and/or Sub-Registry. (3) A Conventional OMO Participant and/or Sub-Registry receiving the confirmation request letter set forth in paragraph (2) will submit a written response to Bank Indonesia within no later than 3 (three) business days as from the date of the confirmation request letter from Bank Indonesia. (4) If, until the deadline set forth in paragraph (3), a Conventional OMO Participant and/or Sub-Registry fail to submit a written response, the Conventional OMO Participant and/or Sub-Registry will be deemed to confirm the indicated breach.
Part Two
SDBI Issuance
Section 1
SDBI Tender Announcement
Article 18
(1) Bank Indonesia will announce SDBI tender plan and its changes no later than before the window time through BIETP System, LHBU System, and/or any other means.
(2) The SDBI tender plan announcement set forth in paragraph (1) contains the following information:
a. means of transactions; b. tender day and date;
c. window time;
d. period; e. maturity date; f. tender method; g. indicative target, if it is a variable rate tender; h. SDBI discount rate, if it is a fixed rate tender;
i. date and time of settlement; and/or
j. other information.
Section 2
SDBI Tender Bid Submission
Article 19
A Conventional OMO Participant, directly and/or through an Intermediary Institution, will submit SDBI tender bid to Bank Indonesia through BI-ETP System within the determined window time.
Article 20
(1) The submitted SDBI tender bid set forth in Article 19 includes the following information:
a. nominal value, for fixed rate tender; or b. nominal value and discount rate, for variable rate tender, for each term of SDBI to be issued. (2) A Conventional OMO Participant may submit a bid set forth in paragraph (1) in a minimum nominal value of Rp1,000,000,000.00 (one billion rupiah) and further at the multiple of Rp100,000,000.00 (one hundred million rupiah). (3) If SDBI tender is conducted in variable rate tender method, any bid on discount rate shall be made at the multiple of 0.01% (zero point zero one percent).
Section 3
Determination of SDBI Successful Bidder
Article 21
(1) If SDBI tender is conducted in fixed rate tender method, the successful bidder will be determined through the calculation of:
a. nominal value submitted by a Conventional OMO Participant, which is won entirely; or b. if required, the nominal value submitted by a Conventional OMO Participant may be partially won in proportion according to the calculation of Bank Indonesia, with the the smallest SDBI nominal rounding of Rp1,000,000.00 (one million rupiah). (2) If SDBI tender is conducted in variable rate tender method, the successful bidder will be determined as follows:
a. Bank Indonesia determines the highest accepted discount rate or Stop Out Rate (SOR); and b. Bank Indonesia determines the successful bid through the following:
Bank Indonesia may determine that there is no successful bidder in SDBI tender.
Section 4
SDBI Tender Result Announcement
Article 23
Bank Indonesia will announce SDBI tender result it has conducted the successful bidder determination process under the following provisions:
a. personally to the successful bidder through BI-ETP System and/or any other means, containing the discount rate, the won SDBI cash value, and/or other information; and b. entirely through BI-ETP System, LHBU System, and/or any other means, containing the weighted average of SDBI discount rate, Stop Out Rate (SOR), nominal value of all incoming bids, nominal value of all won bid, and/or any other information.
Section 5
SDBI Settlement
Article 24
(1) Bank Indonesia will conduct SDBI tender result settlement no later than 1 (one) Business Day after the announcement of SDBI tender result. (2) A Conventional OMO Participant must have fund in its rupiah Checking Account adequate for SDBI tender result settlement.
Article 25
(1) Bank Indonesia will conduct Fund Settlement of SDBI tender result by debiting a Conventional OMO Participant’s rupiah Checking Account in an amount equal to SDBI cash value and Securities Settlement by
crediting a Conventional OMO Participant's Securities Account in an amount equal to SDBI nominal value. (2) The SDBI cash value set forth in paragraph (1) is calculated based on true discount with the following formula:
Discount Value = Nominal Value – Cash Value SBI Cash Value = Nominal Value x 360 360+(Discount Rate x Term) Note:
Nominal Value = the won SDBI nominal value Discount Rate = the won discount rate Term = number of days calculated within 1 (one) calendar day from SDBI tender settlement date until maturity date (3) Example of calculation of SDBI cash value and discount rate set forth in paragraph (2) is specified in Appendix II, which constitutes an inseparable part hereof. (4) Fund Settlement and Securities Settlement set forth in paragraph (1) is made through gross to gross and DVP mechanisms.
Article 26
(1) If the fund in a Conventional OMO Participant's rupiah Checking Account is not adequate to perform the settlement obligation until before the cut-off warning period of BI-RTGS System resulting in failure of SDBI tender settlement, BI-SSSS will automatically cancel the SDBI tender transaction won by the Conventional OMO Participant. (2) If, in the same SDBI tender, there is more than 1 (one) SDBI transaction cancellation as set forth in paragraph (1), then to calculate the imposed temporary suspension from participating in CMO activities, the transaction cancellation will be counted 1 (one) time.
Article 27
(1) SDBI settlement will be made on the SDBI maturity date. (2) BI-SSSS will automatically make redemption settlement from BI-RTGS System is opened until before the cut-off warning period of BI-RTGS System. (3) Bank Indonesia will redeem any mature SDBI based on SDBI ownership record in BI-SSSS within 1 (one) Business Day prior to SDBI maturity date. (4) If, after a transaction is made, SDBI maturity date is determined as a holiday by the government, SDBI settlement will be made on the following Business Day, without calculating any extra discount for such holiday. (5) Bank Indonesia will conduct SDBI settlement on the maturity date by:
a. crediting an SDBI holder's rupiah Checking Account in an amount equal to the mature SDBI nominal value; and b. debiting an SDBI holder's Securities Account in an amount equal to the mature SDBI nominal value.
Section 6
Limitation of SDBI Transactions in the Secondary Market
Article 28
A Commercial Bank may not negotiate or transact SDBI it holds with any party other than another Commercial Bank.
Article 29
A Commercial Bank may transact SDBI with Bank Indonesia.
Article 30
Sub-Registry must administer SDBI of its customers by fulfilling the provisions set forth in Article 28.
Article 31
Bank Indonesia will conduct indirect supervision and/or inspect implementation of the provisions set forth in Article 28 by commercial banks and Sub-Registry.
Article 32
(1) For any breach of the provisions set forth in Article 28, Bank Indonesia will make an Early Redemption of SDBI held by any party other than a commercial bank without the holder's approval. (2) The Early Redemption set forth in paragraph (1) is calculated within 1 (one) Business Day after the SDBI negotiation settlement date to any party other than a commercial bank. (3) Calculation of an Early Redemption against SDBI refers to the provisions of Bank Indonesia for criteria and requirements for securities in monetary operation.
Part Three
Foreign Exchange SBBI Issuance
Section 1
Registration and Information Update for Participation in Foreign Exchange SBBI Tender
Article 33
Conventional OMO Participants and Intermediary Institutions must register themselves and/or update their information prior to participating in a Foreign Exchange SBBI tender.
Article 34
(1) Conventional OMO Participants and Intermediary Institutions must submit registration requests to participate in a Foreign Exchange SBBI tender together with information on the names of at least 2 (two) employees appointed to make transactions in a Foreign Exchange SBBI tender.
(2) The registration request set forth in paragraph (1) must be signed by an official authorized to represent a Conventional OMO Participant or Intermediary Institution. (3) The registration request set forth in paragraph (1) must use the format as specified in Appendix III, which constitutes an inseparable part hereof. (4) The registration request set forth in paragraph (1) must be submitted to Bank Indonesia at the following address:
Bank Indonesia - Monetary Management Department Jl. M.H. Thamrin No. 2 Jakarta 10350 Facsimile Number 021-2310347 (5) The letter submission set forth in paragraph (1) may be preceded by facsimile transmission. (6) If the correspondence address set forth in paragraph (4) changes, Bank Indonesia will inform it by letter and/or through any other media.
Article 35
The registration request set forth in Article 34 paragraph (1) may be submitted together with the submission of Monetary Operation participation permit as specified in the provisions of Bank Indonesia for monetary operation participation.
Article 36
(1) If the information set forth in Article 34 paragraph (1) changes, any Conventional OMO Participant and Intermediary Institution must submit information update by letter by using the format as specified in Appendix III, which constitutes an inseparable part hereof. (2) The letter set forth in paragraph (1) must be delivered to Bank Indonesia to the address as specified in Article 34 paragraph (4).
Section 2
Announcement of Foreign Exchange SBBI Tender Plan
Article 37
(1) Bank Indonesia will announce Foreign Exchange SBBI tender plan and its changes at least before the window time through the dealing system determined by Bank Indonesia, LHBU System, website of Bank Indonesia, and/or any other means of communication used by Bank Indonesia. (2) The Foreign Exchange SBBI tender plan announcement set forth in paragraph (1) contains the following information:
a. means of transactions; b. tender day and date;
c. series;
d. window time; e. period; f. maturity date; g. tender method; h. indicative target, if it is a variable rate tender;
i. Foreign Exchange SBBI discount rate, if it is a fixed
rate tender; j. settlement date; and/or k. other information.
Section 3
Submission of Foreign Exchange SBBI Tender Bid
Article 38
(1) Any bid for Foreign Exchange SBBI transaction in fixed rate tender method must at least contain the following information:
a. auction name; b. bid’s nominal value;
c. discount rate as announced by Bank Indonesia;
d. BI-SSSS participant code referring to the provisions of Bank Indonesia for implementation of securities administration through BI-SSSS as follows:
Article 39
(1) The minimum submitted nominal value of the bid of each Conventional OMO Participant and/or Intermediary Institution shall be USD100,000.00 (one hundred thousand US dollar) and further at the multiple of USD1,000.00 (one thousand US dollar). (2) Conventional OMO Participants and Intermediary Institutions may submit their bid in the maximum amount of USD100,000,000.00 (one hundred million US dollar) per submitted bid. (3) If a Foreign SBBI transaction tender is conducted in variable rate tender method, the submitted discount bid must be at the multiple of 0.1 bps (zero point one basis point) or 0.001% (zero point zero zero one percent).
Article 40
(1) Conventional OMO Participants and Intermediary Institutions participating in a Foreign Exchange SBBI issuance tender must submit their Foreign Exchange SBBI bids containing complete and true information based on transaction instruction documents. (2) Conventional OMO Participants and Intermediary Institutions submit their Foreign Exchange SBBI transaction bids to Bank Indonesia through the means of dealing system and within the window time determined by Bank Indonesia. (3) Conventional OMO Participants and Intermediary Institutions shall be responsible for the accuracy of data on their Foreign Exchange SBBI bids. (4) Conventional OMO Participants and Intermediary Institutions, which have submitted their Foreign Exchange SBBI bids, may not cancel their bids. (5) An Intermediary Institution must submit information to a Conventional OMO Participant on a submitted Foreign Exchange SBBI bid for the Conventional OMO Participant’s interest.
(6) If a Conventional OMO Participant or Intermediary Institution submits its Foreign Exchange SBBI bid in the name of the party it represents, then the Conventional OMO Participant or Intermediary Institution must be responsible for the fulfillment of broker bidding limit agreed between the Conventional OMO Participant or Intermediary Institution and the party it represents.
Article 41
(1) Any Conventional OMO Participant and Intermediary Institution may correct information on their Foreign Exchange SBBI bids as set forth in Article 38 during the window time of a Foreign Exchange SBBI tender. (2) The correction set forth in paragraph (1) may be made against all submitted bid information except the auction name.
Section 4
Determination of Foreign Exchange SBBI Successful Bidder
Article 42
(1) If a Foreign Exchange SBBI tender is conducted in fixed rate tender method, the successful bidder will be determined through the following calculation:
a. nominal value submitted by a Conventional OMO Participant, which is won entirely; or b. if required, the nominal value submitted by a Conventional OMO Participant may be partially won in proportion with the smallest nominal Foreign Exchange SBBI rounding of USD1,000.00 (one thousand US dollar). (2) If a Foreign Exchange SBBI tender is conducted in variable rate tender method, the successful bidder will be determined through the following calculation:
a. Bank Indonesia determines the highest accepted discount rate or Stop Out Rate (SOR);
b. Bank Indonesia will determine the successful bid through the following:
b. entirely through LHBU system and/or any other means, containing the series, currency, nominal value of all incoming bids, nominal value of all won bids, weighted average discount rate, maturity date, and/or any other information.
Section 6
Foreign Exchange SBBI Settlement
Article 45
Settlement of Foreign Exchange SBBI tender result must be made no later than 3 (three) Business Days after the tender implementation.
Article 46
(1) Foreign Exchange SBBI transactions will be made by debiting or crediting:
a. Foreign currency Checking Account in US dollar denomination; and/or b. Securities Account. (2) Fund adequacy in foreign currency Checking Account for settlements shall calculate:
a. effective balance of the foreign currency Checking Account at the end of 1 (one) Business Day before the settlement date of Foreign Exchange SBBI; and b. result of foreign exchange securities transaction settlements through BI-SSSS on a settlement date. (3) If the fund in foreign currency Checking Account set forth in paragraph (2) is provided through Bank Indonesia's checking account with a correspondent bank, the foreign exchange fund deposit must have been effective in Bank Indonesia's checking account with the Federal Reserve Bank of New York no later than 1 (one) Business Day prior to the settlement date of Foreign Exchange SBBI. (4) Foreign Exchange SBBI is administered by referring to the provisions of Bank Indonesia for implementation of securities administration through BI-SSSS.
Article 47
(1) A Conventional OMO Participant must provide adequate fund in its foreign currency Checking Account to meet its transaction settlement obligation. (2) The fund set forth in paragraph (1) includes the fund to be provided by a Paying Bank.
Article 48
Any Foreign Exchange SBBI buyer, who does not have a Securities Account, must appoint a Sub-Registry for settlement of Foreign Exchange SBBI tender result.
Article 49
(1) Any Foreign Exchange SBBI buyer, who does not have a foreign currency Checking Account, must appoint a Paying Bank for settlement of Foreign Exchange SBBI tender result. (2) Procedure for Paying Bank appointment set forth in paragraph (1) refers to the provisions of Bank Indonesia for implementation of securities administration through BI-SSSS.
Article 50
(1) On the settlement date of Foreign Exchange SBBI tender result, the following is conducted:
a. Fund Settlement is conducted by debiting:
b. Securities settlement is conducted by crediting:
(2) If, in the same Foreign Exchange SBBI tender, there is more than 1 (one) cancellation of Foreign Exchange SBBI transaction as set forth in paragraph (1), then to calculate the imposed temporary suspension from participating in CMO activities, the transaction cancellation will be counted 1 (one) time.
Article 52
(1) Settlement of Foreign Exchange SBBI redemption is conducted in the following methods:
a. Bank Indonesia will redeem Foreign Exchange SBBI on its maturity date or prior to the due date of the Foreign Exchange SBBI redemption. b. The Foreign Exchange SBBI redemption set forth in letter a is based on the position of Foreign Exchange SBBI ownership record in BI-SSSS on 3 (three) Business Days prior to the maturity date of Foreign Exchange SBBI principal redemption.
c. Bank Indonesia will settle the Foreign Exchange SBBI
redemption set forth in letter a as follows:
SBBI ownership in the name of the Conventional OMO Participant; and/or b) the Securities Account of a Sub-Registry for Foreign Exchange SBBI ownership in the customer’s name. (2) If, after a transaction of Foreign Exchange SBBI issuance, the tender result settlement date or maturity date of Foreign Exchange SBBI is determined as a holiday by the government, the transaction settlement will be conducted on the following Business Day without calculating the decrease or increase in the discount value for such holiday.
Part Four
Conventional OMO Repo Transaction
Section 1
Announcement of Conventional OMO Repo Transaction Tender Plan
Article 53
(1) Bank Indonesia will announce Conventional OMO Repo Transaction tender and its change no later than before the window time through BI-ETP System, LHBU System, and/or any other means. (2) Announcement of the Conventional OMO Repo Transaction tender plan set forth in paragraph (1) contains the following information:
a. means of transactions; b. tender day and date;
c. window time;
d. period; e. maturity date; f. tender method; g. indicative target if the tender is conducted in variable rate tender method;
h. the repo rate, if the tender is conducted in fixed rate tender method;
i. the type of repurchased securities;
j. haircut; k. date and time of settlement; and/or
l. other information.
(3) If a Conventional OMO Repo Transaction uses foreign exchange securities, then in addition to the contents set forth in paragraph (2), the tender announcement will also include price reference for foreign exchange securities and transaction rate reference.
Section 2
Submission of Bids for Conventional OMO Repo Transaction Tender
Article 54
A Conventional OMO Participant, directly and/or through an Intermediary Institution, will submit its bid for Conventional OMO Repo Transaction tender with rupiah or foreign exchange securities to Bank Indonesia through BI-ETP System or means of dealing system within the determined window time.
Article 55
(1) The bid submitted for Conventional OMO Repo Transaction tender with rupiah securities set forth in
Article 54 includes the following information:
a. nominal value, type and series of repurchased securities, for a fixed rate tender method; or b. nominal value, type and series of repurchased securities, and repo rate, for a variable rate tender method, for each term of Conventional OMO Repo Transaction to be conducted. (2) A Conventional OMO Participant will submit each bid in a minimum nominal value of Rp1,000,000,000.00 (one
billion rupiah) and further at the multiple of Rp100,000,000.00 (one hundred million rupiah). (3) If a tender is conducted in variable rate tender method, each repo rate bid will be submitted at the multiple of 0.01% (zero point zero one percent).
Article 56
(1) Submission of Conventional OMO Repo Transaction tender bids with foreign exchange securities set forth in
Article 54 is governed under the following provisions:
a. The rate used in a Conventional OMO Repo Transaction with foreign exchange securities is the Bank Indonesia mid rate on the transaction date. b. The submitted bid includes the following information:
(3) If a tender is conducted in variable rate tender method, any repo rate bid will be submitted at the multiple of 0.01% (zero point zero one percent). (4) A bid may be submitted 2 (two) times at the maximum for each submission term.
Article 57
(1) Conventional OMO Participants and Intermediary Institutions may submit correction to the submitted bids set forth in Article 56 paragraph (1). (2) In the event of bid correction set forth in paragraph (1), Conventional OMO Participants and Intermediary Institutions may only submit their correction once for each bid submitted within the window time of a Conventional OMO Repo Transaction tender. (3) The correction set forth in paragraph (2) may be made to bid information other than the Conventional OMO Participant's name and term of Conventional OMO Repo Transaction. (4) The bid correction must meet the requirements for bid submission set forth in Article 56.
Article 58
(1) Any Conventional OMO Participant submitting its bid for Conventional OMO Repo Transaction tender with foreign exchange securities must deliver the following documents to Bank Indonesia:
a. a statement letter declaring that:
with a custodian institution appointed by Bank Indonesia and Computer Processing Result (CPR) of ownership of a Conventional OMO Participant's rupiah securities at the closing position on 1 (one) business day prior to the transaction date. (2) Example of statement letter and data on foreign exchange securities set forth in paragraph (1) uses the format set forth in Appendix IV, which constitutes an inseparable
part hereof.
Article 59
(1) The documents set forth in Article 58 must be submitted to Bank Indonesia before the closing of a transaction’s window time, which may be preceded with submission by facsimile or any other means. (2) The documents must be addressed to:
Bank Indonesia - Monetary Management Department c.q. Monetary Operation Group Jl. M.H. Thamrin No. 2 Central Jakarta 10350 Facsimile: (021) 2310347 Phone: (021) 29818350
Article 60
A bid for Conventional OMO Repo Transaction with foreign exchange securities will be declared canceled if a Conventional OMO Participant:
a. submits its bid inconsistent with the provisions set forth in Article 54 and Article 56; b. does not make any correction under the provisions set forth in Article 57;
c. does not submit documents under the provisions set forth
in Article 58; and/or d. based on examination by Bank Indonesia, the statement letter set forth in Article 58 is proven untrue.
Section 3
Determination of Successful Bidder of Conventional OMO Repo Transaction Tender
Article 61
(1) If a Conventional OMO Repo Transaction tender with rupiah securities is conducted in fixed rate tender method, the successful bidder will be determined through the following calculation:
a. bid’s nominal value submitted by the Conventional OMO Participant, which is won entirely; or b. if required, bid’s nominal value submitted by the Conventional OMO Participant may be won partially in proportion according to the calculation of Bank Indonesia, with the smallest nominal rounding of Rp1,000,000.00 (one million rupiah). (2) If a Conventional OMO Repo Transaction tender with rupiah securities is conducted in variable rate tender method, the successful bidder will be determined through the following calculation:
a. Bank Indonesia determines the lowest accepted repo rate or Stop Out Rate (SOR); and b. Bank Indonesia determines the successful bid as follows:
Article 62
(1) If a Conventional OMO Repo Transaction with foreign currency securities tender is conducted in fixed rate tender method, the successful bidder will be determined through the following calculation:
a. bid’s nominal value submitted by the Conventional OMO Participant, which is won entirely; or b. if required, bid’s nominal value submitted by the Conventional OMO Participant may be won partially in proportion according to the calculation of Bank Indonesia, with rounding up to the closest million rupiah. (2) If a Conventional OMO Repo Transaction with foreign currency securities tender is conducted in variable rate tender method, the successful bidder will be determined through the following calculation:
a. Bank Indonesia determines the lowest accepted repo rate or Stop Out Rate (SOR); and b. Bank Indonesia determines the successful bid as follows:
paragraph (1) and paragraph (2) is specified in Appendix IV, which constitutes an inseparable part hereof.
Article 63
Bank Indonesia may determine that there is no successful bidder in a Conventional OMO Repo Transaction tender.
Section 4
Announcement of Conventional OMO Repo Transaction Tender Result
Article 64
Bank Indonesia will announce the result of Conventional OMO Repo Transaction tender with rupiah securities it has conducted the successful bidder determination process under the following provisions:
a. personally to the successful bidder through BI-ETP System and/or any other means, containing the nominal value, transaction value, the won repo rate, and/or other information; and b. entirely through BI-ETP System, LHBU System, and/or any other means, containing the nominal value of all incoming bids, the nominal value of all won bid, Stop Out Rate (SOR), weighted average of repo rate, and/or any other information.
Article 65
Bank Indonesia will announce the result of Conventional OMO Repo Transaction tender with foreign exchange securities it has conducted the successful bidder determination process under the following provisions:
a. Announcement of the successful bidder will be entirely made through LHBU System and/or any other means determined by Bank Indonesia, containing the won bid nominal value, Stop Out Rate (SOR), weighted average of repo rate, and/or any other information.
b. Individual confirmation will be submitted to the successful bidder through the means of dealing system determined by Bank Indonesia containing:
a. Securities Settlement, by debiting Securities Account in an amount equal to the nominal value of the repurchased securities; and b. Fund Settlement, by crediting rupiah Checking Account in an amount equal to the first leg settlement value.
Article 67
Calculation of the first leg settlement value refers to the provisions of Bank Indonesia for criteria and requirements for securities in monetary operation.
Article 68
(1) If a Conventional OMO Participant does not have the type and series of securities in its Securities Account adequate to perform its settlement obligation until the determined time resulting in failure of the first leg settlement, BISSSS will automatically cancel the Conventional OMO Participant's Repo Transaction. (2) If, in the same tender, there is more than 1 (one) cancellation of Conventional OMO Repo Transaction (first leg), then to calculate the imposed temporary suspension from participating in CMO activities, the transaction cancellation will be counted 1 (one) time.
Article 69
(1) On the due date of a Conventional OMO Repo Transaction (second leg), BI-SSSS will automatically conduct the second leg settlement from BI-RTGS System is opened until before the cut-off warning of BI-RTGS System. (2) A Conventional OMO Participant must have fund in its rupiah Checking Account adequate for the second leg settlement. (3) The second leg settlement is conducted through BI-RTGS and BI-SSSS by gross to gross and DVP mechanisms as follows:
a. Fund Settlement, by debiting rupiah Checking Account in an amount equal to the second leg settlement value; and b. Securities Settlement, by crediting Securities Account in an amount equal to the nominal value of mature securities in a Conventional OMO Repo Transaction.
Article 70
Calculation of the second leg settlement value refers to the provisions of Bank Indonesia for criteria and requirements for securities in monetary operation.
Article 71
If, after a Conventional OMO Repo Transaction with rupiah securities, the due date of the second leg transaction is determined as a holiday by the government, the settlement will be conducted on the following Business Day without calculating any additional repo rate for the holiday.
Article 72
(1) If the fund in rupiah Checking Account is inadequate to perform the second leg settlement obligation until before the cut-off warning period of BI-RTGS System resulting in failure of the second leg settlement, BI-SSSS will automatically cancel the mature Conventional OMO Repo Transaction (second leg). (2) If a Conventional OMO Participant fails to conduct the second leg settlement set forth in paragraph (1), Bank Indonesia will conduct the following:
a. If securities are in the form of SBI and SDBI, Bank Indonesia will make an Early Redemption of SBI and SDBI and impose fee of Conventional OMO Repo Transaction. b. If securities are in the form of SBN, the transaction will be treated as an outright sale transaction by the Conventional OMO Participant.
(3) For failure of the second leg settlement, a Conventional OMO Participant must pay the fee of Conventional OMO Repo Transaction to Bank Indonesia. (4) Calculation of settlement and use of securities price in an outright sale transaction by a Conventional OMO Participant refers to the provisions of Bank Indonesia for criteria and requirements for securities in monetary operation.
Article 73
If a Conventional OMO Participant makes an outright sale transaction, the following will be conducted:
a. Rupiah Checking Account will be debited or credited by using the following calculation of securities price:
will be credited in an amount equal to the accrued interest or yield as from the first leg settlement date until the outright sale transaction date;
3. if a Conventional OMO Participant receives coupon or
yield payment within 1 (one) Business Day after the first leg settlement date, the Rupiah Checking Account will be debited in an amount equal to the accrued interest or yield paid by Bank Indonesia in the first leg plus the accrued interest or yield as from the outright sale transaction date until the coupon or yield payment date within 1 (one) Business Day after the outright sale transaction date;
4. if a Conventional OMO Participant receives coupon or
yield payment within 1 (one) Business Day after the first leg settlement date and it receives the next coupon or yield payment within 1 (one) Business Day after an outright sale transaction date, the rupiah Checking Account will be credited in an amount equal to the accrued interest or yield from the first leg settlement date until the coupon or yield payment date within 1 (one) Business Day after the first leg settlement date and will be debited in an amount equal to the accrued interest or yield from an outright sale transaction date until the coupon or yield payment date within 1 (one) Business Day after the outright sale transaction;
5. if a Conventional OMO Participant receives coupon or
yield payment on an outright sale transaction date, its rupiah Checking Account will be debited in an amount equal to the accrued interest or yield paid to the Conventional OMO Participant in the first leg;
6. if a Conventional OMO Participant receives coupon or
yield payment in a Conventional OMO Repo Transaction period and there is coupon or yield payment within 1 (one) Business Day after an outright sale transaction date, its rupiah Checking Account will be debited in an amount equal to the accrued
interest or yield paid to the Conventional OMO Participant in the first leg plus the accrued interest or yield from an outright sale transaction date until the coupon or yield payment within 1 (one) Business Day after the outright sale transaction date; or
7. if there are 2 (two) coupon or yield payments within a
Conventional OMO Repo Transaction period, the rupiah Checking Account will be debited in an amount equal to the accrued interest or yield paid to a Conventional OMO Participant in the first leg settlement or will be credited in an amount equal to the accrued interest or yield from the last coupon payment in the Conventional OMO Repo Transaction period until an outright sale transaction date.
c. Rupiah Checking Account will be debited in an amount
equal to the repo rate payable by a Conventional OMO Participant to Bank Indonesia.
Article 74
If there is 1 (one) cancellation of the second leg settlement of a Conventional OMO Repo Transaction on the same day, then to calculate the imposed temporary suspension from participating in CMO activities, the transaction cancellation will be counted 1 (one) time.
Section 6
Settlement of Conventional OMO Repo Transaction with Foreign Exchange Securities
Article 75
The rate used in calculation of the first leg settlement value is the Bank Indonesia mid rate on the transaction date.
Article 76
(1) Bank Indonesia will conduct the first leg settlement no later than 1 (one) Business Day after announcement of a Conventional OMO Repo Transaction tender result.
(2) The first leg settlement is conducted as follows:
a. Securities Settlement is conducted by a Conventional OMO Participant by transferring securities with the type and series of securities in an amount equal to the repurchased nominal value from the Conventional OMO Participant's account to Bank Indonesia’s securities account with a custodian institution appointed by Bank Indonesia on the settlement date (value date). b. Calculation of the nominal value of securities to be transferred refers to provisions of Bank Indonesia for criteria and requirements for securities in monetary operation.
c. Fund Settlement is made by Bank Indonesia by
crediting rupiah Checking Account in an amount equal to the won bid nominal value. d. Bank Indonesia will conduct the Fund Settlement set forth in letter c upon receipt of confirmation from the custodian bank that the foreign exchange securities repurchased by a Conventional OMO Participant have been received.
Article 77
If a Conventional OMO Participant fails to perform the mandatory Conventional OMO Repo Transaction set forth in Article 76 paragraph (2) letter a, Bank Indonesia will cancel any Conventional OMO Repo Transaction unsupported by transfer of adequate securities.
Article 78
(1) On maturity date of the second leg Conventional OMO Repo Transaction, a Conventional OMO Participant must provide adequate fund in its rupiah Checking Account for the second leg settlement. (2) The second leg settlement is conducted as follows:
Coupon
Value
Received by Bank
Indonesia
(2) The coupon value set forth in paragraph (1) is calculated by using BI buying rate on the value date of the coupon receipt. (3) If Bank Indonesia receives coupon payment, repo rate from the coupon payment date is calculated based on the first leg settlement value deducted by the coupon receipt's rupiah equivalence.
Article 81
If after a Conventional OMO Repo Transaction with foreign exchange securities, the due date of the second leg transaction is determined as a holiday by the government, settlement will be made on the following business day without calculating any additional repo rate for the holiday.
Article 82
(1) If fund in a rupiah Checking Account is inadequate to perform the second leg settlement obligation until before the cut-off warning period of BI-RTGS resulting in the failure of the second leg settlement, Bank Indonesia will cancel the second leg Conventional OMO Repo Transaction of the Conventional OMO Participant. (2) If a Conventional OMO Participant fails to conduct the second leg settlement, Bank Indonesia will conduct the following:
a. Bank Indonesia will sell foreign exchange securities to the counterparty of Bank Indonesia after failure of the second leg settlement. b. The rate to be used when Bank Indonesia sells securities set forth in letter a is Bank Indonesia buying rate.
c. So long as foreign exchange has not been sold, Bank
Indonesia will impose repo fee to a Conventional OMO Participant until the settlement date (value date) of securities sale. d. If the selling value of foreign exchange securities is lower than the first leg settlement value, Bank Indonesia will impose the shortage of fund from the securities selling by debiting the Conventional OMO Participant’s rupiah Checking Account in an amount equal to the shortage value. e. If the selling value of foreign exchange securities is higher than the first leg settlement value, Bank Indonesia will return the excess of fund from the securities selling by crediting the Conventional OMO
Participant’s rupiah Checking Account in an amount equal to the shortage value. f. Rupiah Checking Account will be debited in an amount equal to the repo rate.
Section 7
Securities Coupon
Article 83
(1) Treatment of coupons or securities in the event of failure of the second leg settlement of a Conventional OMO Repo Transaction is stipulated as follows:
a. If, after the date of an outright sale transaction, Bank Indonesia receives coupon or yield payment of repurchased securities by a Conventional OMO Participant, then the received coupon or yield will belong to Bank Indonesia. b. If, on the date of an outright sale transaction, a Conventional OMO Participant receives coupon or yield payment of repurchased securities by Bank Indonesia, then Bank Indonesia will debit the Conventional OMO Participant’s rupiah Checking Account in an amount equal to the coupon or yield it receives.
c. If, after the date of an outright sale transaction, a
Conventional OMO Participant receives coupon or yield payment of repurchased securities by the Conventional OMO Participant, then on the coupon or yield payment, Bank Indonesia will debit the rupiah Checking Account in an amount equal to the coupon or yield it receives. (2) The rate used in coupon value calculation in a Conventional OMO Repo Transaction with foreign exchange securities is Bank Indonesia buying rate on the coupon receipt date.
Part Five
Conventional OMO Reverse Repo Transaction
Section 1
Announcement of Conventional OMO Reverse Repo Transaction Tender
Article 84
(1) Bank Indonesia will announce a Conventional OMO Reverse Repo Transaction tender plan and its changes at least before the window time through BI-ETP System, LHBU System, and/or any other means. (2) The announcement of Conventional OMO Reverse Repo Transaction tender plan set forth in paragraph (1) contains the following information:
a. means of transactions; b. tender day and date;
c. window time;
d. period; e. maturity date; f. tender method; g. indicative target, if it is a variable rate tender; h. RR-Rate, if it is a fixed rate tender;
i. type and series of securities to be reverse repurchased;
j. haircut; k. date and time of settlement; and/or
l. any other information.
Section 2
Submission of Bids for Conventional OMO Reverse Repo Transaction Tender
Article 85
A Conventional OMO Participant, directly and/or through an Intermediary Institution, will submit to Bank Indonesia its bid for a Conventional OMO Reverse Repo Transaction tender through BI-ETP System within the determined window time.
Article 86
(1) The submitted bid for Conventional OMO Reverse Repo Transaction tender set forth in Article 85 contains the following information:
a. nominal value if the tender is conducted in fixed rate tender method; or b. nominal value and RR-Rate if the tender is conducted in variable rate tender, for each term of the Conventional OMO Reverse Repo Transaction to be made. (2) A Conventional OMO Participant may submit its bid in a minimum nominal value of Rp1,000,000,000.00 (one billion rupiah) and further at the multiple of Rp100,000,000.00 (one hundred million rupiah). (3) If a tender is conducted in variable rate tender method, any bid for RR-Rate will be submitted at the multiple of 0.01% (zero point zero one percent).
Section 3
Determination of Successful Bidder of Conventional OMO Reverse Repo Transaction Tender
Article 87
(1) If a Conventional OMO Reverse Repo Transaction tender is conducted in fixed rate tender method, the successful bidder will be determined through the following calculation:
a. bid’s nominal value submitted by a Conventional OMO Participant is won entirely; or b. if required, bid’s nominal value submitted by a Conventional OMO Participant may be won partially in proportion according to the calculation of Bank Indonesia, with the smallest nominal rounding of Rp1,000,000.00 (one million rupiah). (2) If a Conventional OMO Reverse Repo Transaction tender is conducted in variable rate tender method, the
successful bidder may be determined through the following calculation:
a. Bank Indonesia will determine the highest accepted RR-Rate or Stop Out Rate (SOR); and b. Bank Indonesia will determine the won bid through the following:
Bank Indonesia will announce the result of a Conventional OMO Reverse Repo Transaction tender after successful bidder determination process has been conducted by Bank Indonesia under the following provisions:
a. personally to the successful bidder through BI-ETP System and/or any other means containing the nominal value, transaction value, RR-Rate, type and series of the won securities, and/or any other information; and b. entirely through BI-ETP System, LHBU System, and/or any other means containing the nominal value of all incoming bids, the nominal value of all won bid, Stop Out Rate (SOR), weighted average of RR-Rate, and/or any other information.
Section 5
Settlement of Conventional OMO Reverse Repo Transaction
Article 90
(1) Bank Indonesia will conduct the first leg settlement no later than 1 (one) Business Day after announcement of a Conventional OMO Reverse Repo Transaction tender. (2) A Conventional OMO Participant must have fund in its rupiah Checking Account adequate for the first leg settlement. (3) The first leg settlement will be conducted through BIRTGS System and BI-SSSS through gross to gross and DVP mechanisms as follows:
a. Fund Settlement, by debiting the rupiah Checking Account in an amount equal to the first leg settlement value; and b. Securities Settlement, by crediting the Securities Account in an amount equal to the nominal value of the won securities.
Article 91
Calculation of the first leg settlement value refers to the provisions of Bank Indonesia for the criteria and requirements for securities in monetary operation.
Article 92
(1) If the fund in a Conventional OMO Participant’s rupiah Checking Account is inadequate to perform the settlement obligation until before the cut-off warning period of BIRTGS System resulting in the failure of the first leg settlement, BI-SSSS will automatically cancel the Conventional OMO Participant’s Reverse Repo Transaction. (2) If, in the same tender, there is more than 1 (one) cancellation of Conventional OMO Reverse Repo Transaction (first leg), then to calculate the imposed temporary suspension from participating in CMO activities, the transaction cancellation will be counted 1 (one) time.
Article 93
(1) On the due date of a Conventional OMO Reverse Repo Transaction (second leg), BI-SSSS will automatically conduct the second leg settlement from BI-RTGS System is opened until before the cut-off warning period of BIRTGS System. (2) A Conventional OMO Participant must have the type and series of securities in its Securities Account for the second leg settlement. (3) The second leg settlement will be conducted through BIRTGS System and BI-SSSS by gross to gross and DVP mechanisms as follows:
a. Securities Settlement, by debiting the Securities Account in an amount equal to the nominal value of the mature securities in Reverse Repo Transaction (second leg); and
b. Fund Settlement, by crediting the rupiah Checking Account in an amount equal to the second leg settlement value.
Article 94
Calculation of the second leg settlement Perhitungan nilai setelmen second leg refers to the provisions of Bank Indonesia for criteria and requirements for securities in monetary operation.
Article 95
If, after a Conventional OMO Reverse Repo Transaction is made, the due date of the second leg Reverse Repo Transaction is determined as a holiday by the government, the settlement will be conducted on the following Business Day without calculating any additional reverse repo interest for the holiday.
Article 96
(1) If the type and series of securities in a Securities Account is inadequate to perform the second leg settlement obligation until before the cut-off warning period of BIRTGS System resulting in failure of the second leg settlement, BI-SSSS will automatically cancel the mature Conventional OMO Reverse Repo Transaction (second leg) of the Conventional OMO Participant. (2) If a Conventional OMO Participant fails to conduct the second leg settlement set forth in paragraph (1), the Conventional OMO Reverse Repo Transaction will be treated as an outright securities purchase transaction by the Conventional OMO Participant. (3) Calculation of settlement and use of securities price in an outright purchase transaction refers to the provisions of Bank Indonesia for criteria and requirements for securities in monetary operation.
Article 97
If an outright purchase transaction is made, the following will be conducted:
a. the rupiah Checking Account will be debited with the following calculation of securities price:
if the price in the outright purchase transaction equals
to the price in the first leg transaction less haircut, the rupiah Checking Account will be debited in an amount equal to the haircut, after being multiplied by the nominal value of the reverse repurchased securities;
if price in the outright purchase transaction is higher
than that in the first leg transaction less haircut, the Conventional OMO Participant's rupiah Checking Account will be debited in an amount equal to the difference and in a minimum value equal to the haircut determined in the first leg, after being multiplied by the nominal value of the reverse repurchased securities; or
if price in the outright purchase transaction is lower
than that in the first leg transaction less haircut, the Conventional OMO Participant's rupiah Checking Account will be debited in an amount equal to the haircut determined in the first leg, after being multiplied by the nominal value of the reverse repurchased securities. b. Rupiah Checking Account will be debited or credited to calculate the accrued interest or yield as follows:
if a Conventional OMO Participant receives coupon or
yield payment after an outright purchase transaction, the rupiah Checking Account will be debited in an amount equal to the accrued interest or yield from the first leg settlement date until the outright purchase transaction date;
if Bank Indonesia receives coupon or yield payment 1
(one) Business Day after the first leg settlement date, the rupiah Checking Account will be debited in an amount equal to the accrued interest or yield from the first leg settlement date until the outright purchase transaction date;
if Bank Indonesia receives coupon or yield payment 1
(one) Business Day after the outright purchase transaction date, the rupiah Checking Account will be credited in an amount equal to the accrued interest or yield paid by a Conventional OMO Participant in the first leg plus the accrued interest or yield from the outright purchase transaction date;
if Bank Indonesia receives coupon or yield payment 1
(one) Business Day after the first leg settlement date and the next coupon or yield payment 1 (one) Business Day after the outright purchase transaction date, the rupiah Checking Account will be debited in an amount equal to the accrued interest or yield from the first leg settlement date until the coupon or yield payment date 1 (one) Business Day after the first leg settlement date and will be credited in an amount equal to the accrued interest or yield from the outright purchase transaction date until the coupon or yield payment date 1 (one) Business Day after the outright purchase transaction date;
if Bank Indonesia receives coupon or yield payment on
an outright purchase transaction date, the rupiah Checking Account will be credited in an amount equal to the accrued interest or yield paid to Bank Indonesia in the first leg;
if Bank Indonesia receives coupon or yield payment in
a Conventional OMO Reverse Repo Transaction period and coupon or yield payment 1 (one) Business Day after an outright purchase transaction date, the rupiah Checking Account will be credited in an amount equal to the accrued interest or yield paid to Bank Indonesia in the first leg plus accrued interest or yield from the outright purchase transaction date until the coupon or yield payment date 1 (one) Business Day after the outright purchase transaction date; or
if Bank Indonesia receives 2 (two) coupon or yield
payments in a Conventional OMO Reverse Repo
Transaction period, the rupiah Checking Account will be credited in an amount equal to the accrued interest or yield paid to Bank Indonesia in the first leg settlement and will be debited in an amount equal to the accrued interest or yield from the last coupon payment in a Conventional OMO Reverse Repo Transaction period until an outright purchase transaction date.
c. For failure of the second leg settlement, a Conventional
OMO Participant will not receive any reverse repo rate.
Article 98
If there is more than 1 (one) cancellation of the second leg settlement of a Conventional OMO Reverse Repo Transaction on the same day, then to calculate the imposed temporary suspension from participating in CMO activities, the transaction cancellation will be counted 1 (one) time.
Section 6
Securities Coupon
Article 99
Treatment of coupons or yield of securities in the event of failure of the second leg settlement in a Conventional OMO Reverse Repo Transaction is stipulated as follows:
a. If, after an outright purchase transaction date, a Conventional OMO Participant receives coupon or yield payment for securities reverse repurchased by Bank Indonesia, then the received coupon or yield will belong to the Conventional OMO Participant. b. If, after an outright purchase transaction date, Bank Indonesia receives coupon or yield payment for securities reverse repurchased by a Conventional OMO Participant, then Bank Indonesia will credit the rupiah Checking Account of the Conventional OMO Participant in an amount equal to the coupon or yield received by Bank Indonesia.
c. If, after an outright purchase transaction date, Bank
Indonesia receives coupon or yield payment for securities reverse repurchased by Bank Indonesia, then on the coupon or yield payment date, Bank Indonesia will credit the rupiah Checking Account of the Conventional OMO Participant in an amount equal to the coupon or yield received by Bank Indonesia.
Section Six
Outright SBN Purchase and Sale Transaction in the Secondary Market
Section 1
Announcement of Outright SBN Purchase and Sale Transaction Tender Plan in the Secondary Market
Article 100
(1) Bank Indonesia will announce the tender plan and its changes at least before the window time through BI-ETP System, LHBU System, and/or any other means. (2) Announcement of outright SBN purchase and sale transaction tender plan in the secondary market contains the following information:
a. means of transactions; b. tender day and date;
c. window time;
d. type and series of the transacted SBN; e. indicative target, if the tender is conducted in variable rate tender method; f. SBN yield or price, if the tender is conducted in fixed rate tender method; g. date and time of settlement; and/or h. any other information.
Section 2
Submission of Bids for Outright SBN Purchase and Sale Transaction Tender in the Secondary Market
Article 101
A Conventional OMO Participant, directly and/or through an Intermediary Institution, will submit to Bank Indonesia its bid for outright SBN purchase and sale transaction in the secondary market through BI-ETP System within the determined window time.
Article 102
(1) Submission of bids for Outright SBN Purchase and Sale Transaction Tender in the secondary market includes the following information:
a. nominal value, for fixed rate tender; or b. SBN nominal value and yield or price, for tender in variable rate tender method. (2) A Conventional OMO Participant may submit its bid in a minimum nominal value of Rp1,000,000,000.00 (one billion rupiah) and further at the multiple of Rp100,000,000.00 (one hundred million rupiah). (3) If a tender is conducted in variable rate tender method, any yield bid will be submitted at the multiple of 0.01% (zero point zero one percent).
Section 3
Determination of Successful Bidder of Outright SBN Purchase and Sale Transaction Tender in the Secondary Market
Article 103
(1) If fixed rate tender is conducted for outright SBN purchase and sale transaction in the secondary market, the successful bidder will be determined by the following method:
a. nominal value submitted by a Conventional OMO Participant is won entirely; or b. if required, the nominal value submitted by a Conventional OMO Participant may be partially won in proportion according to the calculation of Bank
Indonesia, with the smallest SBN nominal rounding of Rp1,000,000.00 (one million rupiah). (2) If an outright SBN purchase and sale transaction tender in the secondary market is conducted in variable rate tender method, Bank Indonesia will determine the accepted yield rate or Stop Out Rate (SOR), or the accepted price, and the successful bidder will be determined through the following calculation:
a. outright SBN purchase transaction tender in the secondary market:
Conventional OMO Participant equals to the accepted price, the Conventional OMO Participant will win the entire or part of the submitted bid in proportion according to the calculation of Bank Indonesia, with nominal rounding based on the smallest SBN unit of Rp1,000,000.00 (one million rupiah).
Article 104
Bank Indonesia may determine that there is no successful bidder in an outright SBN purchase and sale transaction tender in the secondary market.
Section 4
Announcement of Tender Result of Outright SBN Purchase and Sale Transaction in the Secondary Market
Article 105
Bank Indonesia will announce the tender result of outright SBN purchase and sale transaction in the secondary market after it has conducted the successful bidder determination process under the following provisions:
a. personally to the successful bidder through BI-ETP System and/or any other means, containing the won nominal value, transaction value, the won yield or price, the won type and series of SBN, and/or any other information; and b. entirely through BI-ETP System, LHBU System, and/or any other means, containing the nominal value of all incoming bids, the nominal value of all won bid, Stop Out Rate (SOR), weighted average of yield rate, and/or any other information.
Section 5
Outright SBN Purchase and Sale Transaction in the Secondary Market through Non-Tender Mechanism
Article 106
Outright SBN purchase and sale transaction in the secondary market through non-tender mechanism is made bilaterally between Bank Indonesia and a Conventional OMO Participant directly or through an Intermediary Institution.
Section 6
Settlement of Outright SBN Purchase and Sale Transaction in the Secondary Market through Tender and Non-Tender Mechanisms
Article 107
(1) Bank Indonesia will conduct settlement of outright SBN purchase and sale in the secondary market no later than 2 (two) Business Days after the transaction date. (2) A Conventional OMo Participant must have SBN type and series in its Securities Account adequate for settlement of outright SBN purchase in the secondary market by Bank Indonesia. (3) A Conventional OMo Participant must have fund in its rupiah Checking Account adequate for settlement of outright SBN purchase in the secondary market by Bank Indonesia. (4) Settlement of outright SBN purchase in the secondary market by Bank Indonesia is conducted through BI-RTGS System and BI-SSSS by gross to gross and DVP mechanisms. (5) Example of calculation of SBN sale and purchase settlement value is specified in Appendix V, which constitutes an inseparable part hereof.
Article 108
(1) If a Conventional OMO Participant in outright SBN purchase transaction in the secondary market by Bank Indonesia does not have SBN type and series in its Securities Account or in BSN sale transaction does not have fund in its rupiah Checking Account adequate to
perform SBN purchase and sale settlement obligation until before the cut-off warning period of BI-RTGS System resulting in the settlement failure, BI-SSSS will automatically cancel the SBN purchase and sale transaction. (2) If, in the same tender, there is more than 1 (one) cancellation of outright SBN purchase and sale transaction in the secondary market through tender mechanism, then to calculate the imposed temporary suspension from participating in CMO activities, the transaction cancellation will be counted 1 (one) time. (3) If cancellation is conducted in an outright SBN purchase and sale transactions in the secondary market through non-tender mechanism, then to calculate the imposed temporary suspension from participating in CMO activities, the cancellation will be calculated for each canceled transaction.
Part Seven
Conventional OMO Term Deposit Transaction in Rupiah
Section 1
Announcement of Tender Plan of Conventional OMO Term Deposit Transaction in Rupiah
Article 109
(1) Bank Indonesia will announce Tender plan of Conventional OMO Term Deposit Transaction in Rupiah and its changes at least before the window time through BI-ETP System, LHBU System, and/or any other means. (2) The announcement of Tender plan of Conventional OMO Term Deposit Transaction in Rupiah set forth in paragraph (1) contains the following information:
a. means of transaction; b. tender day and date;
c. window time;
d. period;
e. tender method; f. indicative target, if the Tender of Conventional OMO Term Deposit Transaction in Rupiah is conducted in variable rate tender method; g. discount rate, if the Tender of Conventional OMO Term Deposit Transaction in Rupiah is conducted in fixed rate tender; h. date and time of settlement; and/or
i. any other information.
Section 2
Bid Submission for Tender of Conventional OMO Term Deposit Transaction in Rupiah
Article 110
A Conventional OMO Participant, directly and/or through an Intermediary Institution, will submit its bid to Bank Indonesia for Tender of Conventional OMO Term Deposit Transaction in Rupiah through BI-ETP System within the determined window time.
Article 111
(1) The submitted bid for Tender of Conventional OMO Term Deposit Transaction in Rupiah set forth in Article 110 contains the following information:
a. nominal value, for fixed rate tender; or b. nominal value and discount rate, for variable rate tender, for each term of Conventional OMO Rupiah Term Deposit transaction to be made. (2) A Conventional OMO Participant may submit its bid set forth in paragraph (1) in a minimum nominal value of Rp1,000,000,000.00 (one billion rupiah) and further at the multiple of Rp100,000,000.00 (one hundred million rupiah). (3) If a Tender of Conventional OMO Term Deposit Transaction in Rupiah is conducted in variable rate
tender method, any bid for discount rate will be submitted at the multiple of 0.01% (zero point zero one percent).
Section 3
Determination of Successful Bidder in Tender of Conventional OMO Term Deposit Transaction in Rupiah
Article 112
(1) If a Tender of Conventional OMO Term Deposit Transaction in Rupiah is conducted in fixed rate tender method, the successful bidder will be determined through the following calculation:
a. bid’s nominal value submitted by a Conventional OMO Participant is won entirely; or b. if required, the bid nominal value submitted by a Conventional OMO Participant may be won partially in proportion according to the calculation of Bank Indonesia, with the smallest nominal rounding of Rp1,000,000.00 (one million rupiah). (2) If a Tender of Conventional OMO Term Deposit Transaction in Rupiah is conducted in variable rate tender method, the successful bidder will be determined through the following calculation:
a. Bank Indonesia will determine the highest accepted discount rate or Stop Out Rate (SOR); and b. Bank Indonesia will determine the won bid through the following:
calculation of Bank Indonesia, with the smallest nominal rounding of Rp1,000,000.00 (one million rupiah).
Article 113
Bank Indonesia may determine that there is no successful bidder in a Tender of Conventional OMO Term Deposit Transaction in Rupiah.
Section 4
Announcement of Tender Result of Conventional OMO Term Deposit Transaction in Rupiah
Article 114
Bank Indonesia will announce the result of Tender of Conventional OMO Term Deposit Transaction in Rupiah after it has conducted the successful bidder determination process as follows:
a. personally to the successful bidder through BI-ETP System and/or any other means, containing the discount rate, the won cash value, and/or other information; and b. entirely through BI-ETP System, LHBU System, and/or any other means, containing the weighted average of the discount rate of Conventional OMO Rupiah Term Deposit, Stop Out Rate (SOR), nominal value of all incoming bids, nominal value of the entirely won bid, and/or any other information.
Section 5
Settlement of Tender Result of Conventional OMO Term Deposit Transaction in Rupiah
Article 115
(1) Bank Indonesia will conduct settlement of Tender result of Conventional OMO Term Deposit Transaction in Rupiah at least 1 (one) Business Day after announcement
of the Tender result of Conventional OMO Term Deposit Transaction in Rupiah. (2) A Conventional OMO Participant must have fund in its rupiah Checking Account adequate to conduct settlement of Conventional OMO Rupiah Term Deposit transaction.
Article 116
(1) Bank Indonesia will conduct Fund Settlement of Tender result of Conventional OMO Term Deposit Transaction in Rupiah by debiting a Conventional OMO Participant’s rupiah Checking Account in an amount equal to the total cash value of Conventional OMO Rupiah Term Deposit transaction. (2) The cash value of Conventional OMO Rupiah Term Deposit transaction set forth in paragraph (1) is calculated based on true discount with the following formula:
Discount Value = Nominal Value – Cash Value Cash Value = Nominal Value x 360 360 + (Discount Rate x Term) Note:
Nominal
Value
= the won nominal value of Conventional OMO Rupiah Term Deposit Discount Rate = the won discount rate Term = the number of days calculated 1 (one) calendar day after the tender settlement date until the due date of Conventional OMO Rupiah Term Deposit transaction. (3) The Fund Settlement set forth in paragraph (1) is made through gross to gross mechanism.
Article 117
(1) If the fund in a Conventional OMO Participant’s rupiah Checking Account is inadequate to perform the mandatory Conventional OMO Rupiah Term Deposit transaction settlement until the determined time resulting in the settlement failure, BI-SSSS will automatically cancel the Conventional OMO Rupiah Term Deposit transaction of the Conventional OMO Participant. (2) If, in the same tender, there is more than 1 (one) cancellation of Conventional OMO Rupiah Term Deposit transaction as set forth in paragraph (1), then to calculate the imposed temporary suspension from participating in CMO activities, the transaction cancellation will be counted 1 (one) time.
Article 118
(1) Settlement of Conventional OMO Rupiah Term Deposit transaction redemption will be made on the maturity date. (2) BI-SSSS will automatically conduct the redemption settlement from BI-RTGS System is opened until before the cut-off warning period of BI-RTGS System. (3) If, after a Conventional OMO Rupiah Term Deposit transaction has been made, the maturity date of the transaction is determined as a holiday by the government, the mature settlement will be conducted on the following Business Day without calculating any extra discount for the holiday. (4) Bank Indonesia will conduct the settlement on the maturity date by crediting the Conventional OMO Participant’s rupiah Checking Account in an amount equal to the nominal value of the Conventional OMO Rupiah Term Deposit.
Section 6
Early Redemption of Conventional OMO Rupiah Term Deposit Transaction
Article 119
(1) A Conventional OMO Participant may submit an Early Redemption of Conventional OMO Rupiah Term Deposit transaction from 15.00 West Indonesia Time until 17.00 West Indonesia Time. (2) The nominal value of each Early Redemption submission is Rp1,000,000,000.00 (one billion rupiah) and further at the multiple of Rp100,000,000.00 (one hundred million rupiah). (3) An Early Redemption is made by sending a request letter to Bank Indonesia and through BI-SSSS. (4) The request letter set forth in paragraph (3) may be first submitted to Bank Indonesia through facsimile. (5) The letter set forth in paragraph (3) must be submitted to the following address:
Bank Indonesia - Monetary Management Department c.q. Monetary Operation Group-Rupiah Monetary Operation Division Jl. M.H. Thamrin No. 2 Central Jakarta 10350 Facsimile: (021) 2310347 copy of the letter is delivered to: Department of Treasury and Loan Operation (6) If the correspondence address set forth in paragraph (5) changes, Bank Indonesia will inform it by letter and/or through any other media. (7) Example of request letter for Early Redemption submission in a Conventional OMO Rupiah Term Deposit transaction set forth in paragraph (3) is specified in
Appendix VI, which constitutes an inseparable part
hereof.
Article 120
(1) Bank Indonesia will make an Early Redemption (same day settlement) in the beginning of the pre cut-off period of BI-RTGS System.
(2) The early redemption settlement set forth in paragraph (1) is calculated by applying the following formula:
Early Redemption
Settlement Value
= Early Redemption
Cash Value
prior to the implementation of Tender of Conventional OMO Term Deposit Transaction in Foreign Currency.
Article 122
(1) A Conventional OMO Participant will submit a request letter for registration to participate in a Tender of Conventional OMO Term Deposit Transaction in Foreign Currency together with at least the following information:
a. name of the Conventional OMO Participant; b. Bank Identifier Code (BIC) of the Conventional OMO Participant;
c. 1 (one) Terminal Controller Identifier (TCID) if the
Conventional OMO Participant has a Terminal Controller Identifier (TCID); d. if the Conventional OMO Participant has an account with a Correspondent Bank, it must submit:
f. name, electronic mail, and signature specimen of the dealer authorized to make Conventional OMO Term Deposit Transaction in Foreign Currency; and g. name, electronic mail, and signature specimen of the supervisor of the dealer authorized to make Conventional OMO Term Deposit Transaction in Foreign Currency as set forth in letter f. (2) An Intermediary Institution will submit a request letter for registration to participate in a Tender of Conventional OMO Term Deposit Transaction in Foreign Currency together with at least the following information:
a. name of the Intermediary Institution; b. 1 (one) Terminal Controller Identifier (TCID) of the Intermediary Institution;
c. name, electronic mail, and signature specimen of the
broker authorized to make Conventional OMO Term Deposit Transaction in Foreign Currency; and d. name, electronic mail, and signature specimen of the supervisor of the broker authorized to make Conventional OMO Term Deposit Transactions in Foreign Currency as set forth in letter c. (3) The registration request set forth in paragraph (1) and paragraph (3) must be signed by an official authorized to represent a Conventional OMO Participant or Intermediary Institution. (4) The request set forth in paragraph (3) must be delivered by letter to Bank Indonesia when the first Conventional OMO Foreign Currency Term Deposit transaction will be made. (5) The registration request set forth in paragraph (4) must use the format as specified in Appendix VII, which constitutes an inseparable part hereof. (6) The letter set forth in paragraph (4) must be submitted to the following address:
Bank Indonesia - Monetary Management Department Jl. M.H. Thamrin No. 2 Jakarta 10350
(7) If the correspondence address set forth in paragraph (6) changes, Bank Indonesia will inform it by letter and/or through any other media.
Article 123
The registration request set forth in Article 122 may be submitted together with the submission of Monetary Operation participation permit as specified in the provisions of Bank Indonesia for monetary operation participation.
Article 124
(1) If the information set forth in Article 122 paragraph (1) and paragraph (2) changes, any Conventional OMO Participant and Intermediary Institution must submit information update by letter by using the format as specified in Appendix VII, which constitutes an inseparable part hereof. (2) The letter set forth in paragraph (1) must be delivered to Bank Indonesia to the address as specified in Article 122 paragraph (6).
Article 125
Bank Indonesia will grant approval for registration to participate in a Tender of Conventional OMO Term Deposit Transaction in Foreign Currency to a Conventional OMO Participant and Intermediary Institution by letter containing the following information:
a. name of the Conventional OMO Participant and/or Intermediary Institution; b. Bank Identifier Code (BIC) of the Conventional OMO Participant;
c. Terminal Controller Identifier (TCID) of the Conventional
OMO Participant and/or Intermediary Institution; d. code of an individual page consisting of active page, historical page, and confirmation page in the automated system of foreign exchange Monetary Operation tender;
e. Standard Settlement Instruction of the Conventional OMO Participant; f. effective date to participate in a Tender of Conventional OMO Term Deposit Transaction in Foreign Currency; and/or g. any other information.
Section 2
Announcement of Tender Plan of Conventional OMO Term Deposit Transaction in Foreign Currency
Article 126
(1) Bank Indonesia will announce a Tender plan of Conventional OMO Term Deposit Transaction in Foreign Currency and its changes at least before the window time through the automated system of foreign exchange Monetary Operation tender, LHBU System, and/or any other means. (2) Announcement of Tender plan of Conventional OMO Term Deposit Transaction in Foreign Currency contains the following information:
a. means of transactions; b. tender date;
c. auction name;
d. period; e. window time; f. tender method; g. indicative target, if the Tender of Conventional OMO Term Deposit Transaction in Foreign Currency is conducted in variable rate tender method; h. discount rate, if the Tender of Conventional OMO Term Deposit Transaction in Foreign Currency is conducted in fixed rate tender method;
i. settlement date (value date);
j. maturity date; and/or k. other information.
Section 3
Bid Submission for Tender of Conventional OMO Term Deposit Transaction in Foreign Currency
Article 127
Conventional OMO Participants and Intermediary Institutions must submit their bids to Bank Indonesia for Tender of Conventional OMO Term Deposit Transaction in Foreign Currency through the means of dealing system and within the window time determined by Bank Indonesia according to the time recorded in the system of Bank Indonesia.
Article 128
(1) Any bid submitted for Tender of Conventional OMO Term Deposit Transaction in Foreign Currency conducted in fixed rate tender method must at least contain the following information:
a. auction name; b. nominal value bid;
c. discount rate as announced by Bank Indonesia; and
d. Terminal Controller Identifier (TCID) of a Conventional OMO Participant if an Intermediary Institution submits a bid for and on behalf of the Conventional OMO Participant, for each term of Tender of Conventional OMO Term Deposit Transaction in Foreign Currency. (2) Any bid submitted for Tender of Conventional OMO Term Deposit Transaction in Foreign Currency conducted in variable rate tender method must at least contain the following information:
a. auction name; b. nominal value bid;
c. interest rate; and
d. Terminal Controller Identifier (TCID) of a Conventional OMO Participant if an Intermediary Institution submits a bid for and on behalf of the Conventional OMO Participant,
for each term of Tender of Conventional OMO Term Deposit Transaction in Foreign Currency. (3) The minimum bid nominal value submitted by each Conventional OMO Participant shall be USD5,000,000.00 (five million US dollar) and further at the multiple of USD1,000,000.00 (one million US dollar). (4) If Tender of Conventional OMO Term Deposit Transaction in Foreign Currency is conducted in variable rate tender method, any interest rate bid will be submitted at the multiple of 1 (one) bps (basis point) or 0.01% (zero point zero one).
Article 129
(1) Any Conventional OMO Participant and Intermediary Institution may make correction to any bid submitted within the window time of a Conventional OMO Foreign Currency Term Deposit transaction. (2) The correction set forth in paragraph (1) must be made under the following provisions:
a. Any Conventional OMO Participant may make correction to any bid information other than the auction name; and/or b. Any Intermediary Institution submitting its bid for Tender of Conventional OMO Term Deposit Transaction in Foreign Currency for and on behalf of a Conventional OMO Participant may make correction to any bid information other than the Conventional OMO Participant's Terminal Controller Identifier (TCID) and auction name. (3) The bid correction must meet the requirements for bid submission set forth in Article 128 paragraph (1) and paragraph (2).
Article 130
(1) Conventional OMO Participants and Intermediary Institutions must monitor the accuracy of data on bids
submitted to Bank Indonesia for a Tender of Conventional OMO Term Deposit Transaction in Foreign Currency. (2) An Intermediary Institution must submit information to a Conventional OMO Participant on the submitted bid for Tender of Conventional OMO Term Deposit Transaction in Foreign Currency for the Conventional OMO Participant's interest.
Section 4
Determination of Successful Bidder of Tender of Conventional OMO Term Deposit Transaction in Foreign Currency
Article 131
(1) If fixed rate tender is applied, the successful bidder will be determined through the following calculation:
a. the nominal value submitted by a Conventional OMO Participant is won entirely; or b. if required, the nominal value submitted by a Conventional OMO Participant may be partially won in proportion according to the calculation of Bank Indonesia, with rounding to the closest hundred thousand US dollar under the following provisions:
Stop Out Rate (SOR), the Conventional OMO Participant will win the entire submitted bid; or
2. if the discount rate submitted by a Conventional
OMO Participant equals to the determined Stop Out Rate (SOR), the Conventional OMO Participant will win the entire or part of the submitted bid proportionally according to the calculation of Bank Indonesia, with rounding to the closest hundred thousand US dollar under the following provisions:
a) nominal value of less than USD50,000.00 (fifty thousand US dollar) is rounded to 0 (zero); and b) nominal value of USD50,000.00 (fifty thousand US dollar) or more is rounded up to USD100,000.00 (one hundred thousand US dollar). (3) Example of nominal value calculation and the successful bidder determination in a Tender of Conventional OMO Term Deposit Transaction in Foreign Currency set forth in paragraph (1) and paragraph (2) is specified in Appendix VII, which constitutes an inseparable part hereof.
Article 132
Bank Indonesia may determine that there is no successful bidder in a Tender of Conventional OMO Term Deposit Transaction in Foreign Currency.
Section 5
Tender Result Announcement of Conventional OMO Foreign Currency Term Deposit Transaction
Article 133
(1) Bank Indonesia will announce the tender result of Conventional OMO Foreign Currency Term Deposit transaction after it has conducted the successful bidder determination process under the following provisions:
a. personally to the successful bidder through a tender automated system of foreign exchange Monetary Operation and/or any other means determined by Bank Indonesia, containing the following information:
(1) Bank Indonesia will conduct the settlement of Tender of Conventional OMO Term Deposit Transaction in Foreign Currency no later than 2 (two) business days after the transaction date. (2) A Conventional OMO Participant must provide fund in its checking account with a Correspondent Bank or intermediary bank appointed for settlement purposes, adequate to conduct mandatory settlement of Conventional OMO Foreign Currency Term Deposit transaction. (3) On a settlement date, a Conventional OMO Participant must transfer fund for settlement of Conventional OMO Foreign Currency Term Deposit transaction for each bid or in the won nominal amount to the account of Bank Indonesia with a Correspondent Bank. (4) A Conventional OMO Participant will submit confirmation for the settlement of Conventional OMO Foreign Currency Term Deposit transaction set forth in paragraph (3) through SWIFT message format MT320 or any other means to Bank Indonesia c.q. Department of Treasury and Loan Operation.
Article 135
(1) If a Conventional OMO Participant fails to perform the settlement obligation set forth in Article 134 paragraph (3), a Conventional OMO Foreign Currency Term Deposit transaction will be declared failed. (2) If there is more than 1 (one) cancellation of Conventional OMO Foreign Currency Term Deposit transaction settlement as set forth in paragraph (1) on the same day, then to calculate the imposed temporary suspension from participating in CMO activities, the cancellation will be counted 1 (one) time.
Article 136
(1) On the maturity date of a Conventional OMO Foreign Currency Term Deposit transaction, Bank Indonesia will
redeem the due Conventional OMO Foreign Currency Term Deposit transaction by transferring to a Conventional OMO Participant’s checking account with a Correspondent Bank in an amount equal to the cash value. (2) The cash value set forth in paragraph (1) is calculated by applying the following formula:
Note:
N = nominal amount of Conventional OMO Foreign Currency Term Deposit transaction r = the won discount rate k = term of Conventional OMO Foreign Currency Term Deposit transaction (3) If, after a Conventional OMO Foreign Currency Term Deposit transaction, the maturity date of such transaction is determined as a holiday by the government, the due settlement will be conducted on the following business day without calculating any additional interest for the holiday.
Section 7
Early Redemption of Conventional OMO Foreign Currency Term Deposit
Article 137
(1) A Conventional OMO Participant may submit an Early Redemption of Conventional OMO Foreign Currency Term Deposit 3 (three) days at the earliest after settlement of a Tender of Conventional OMO Term Deposit Transaction in Foreign Currency, against which the Early Redemption will be made. (2) A Conventional OMO Participant may submit an Early Redemption on each Business Day, except on the Tender
of Conventional OMO Term Deposit Transaction in Foreign Currency day with a term longer than overnight. (3) The submitted Early Redemption set forth in paragraph (2) will be made from 08.00 West Indonesia Time until
11.00 West Indonesia Time.
(4) Early Redemption of a Conventional OMO Foreign Currency Term Deposit may be submitted through the means of dealing system determined by Bank Indonesia. (5) Early Redemption of a Conventional OMO Foreign Currency Term Deposit may be submitted for a minimum amount of USD1,000,000.00 (one million US dollar) at the multiple of USD1,000,000.00 (one million US dollar). (6) Early Redemption of Conventional OMO Foreign Currency Term Deposit transaction will be submitted under the following provisions:
a. a Conventional OMO Foreign Currency Term Deposit transacted through a tender automated system of foreign exchange Monetary Operation must be submitted together with information on the reference number and auction name during the submission of Tender of Conventional OMO Term Deposit Transaction in Foreign Currency; or b. a Conventional OMO Foreign Currency Term Deposit transacted manually as set forth in Article 268 paragraph (1) letter c must be submitted together with information on the date and time of tender transaction against which an Early Redemption will be made (Greenwich Mean Time/GMT). (7) Early Redemption of Conventional OMO Foreign Currency Term Deposit, entirely or partially, will be submitted for a full nominal value specified on each deal ticket.
Article 138
(1) A Conventional OMO Participant making an Early Redemption of Conventional OMO Foreign Currency Term Deposit will obtain proportional interest with the following calculation:
Interest = Early
Redemption
Nominal Value x Interest Rate x k 360 Days Note:
k = the term until settlement of an Early Redemption of Conventional OMO Foreign Currency Term Deposit in Bank Indonesia (2) A Conventional OMO Participant will be imposed with a fee of Early Redemption of Conventional OMO Foreign Currency Term Deposit amounting to 10% (ten percent) of the interest set forth in paragraph (1).
Article 139
(1) Bank Indonesia will settle an Early Redemption within 2 (two) business days after the Early Redemption proposal date. (2) Nilai tunai Early Redemption sebesar nilai nominal Term Deposit OPT Konvensional dalam valuta asing yang dilakukan Early Redemption ditambah bunga dikurangi biaya Early Redemption, dengan rumus sebagai berikut:
The cash value of an Early Redemption is in the nominal amount of the corresponding Conventional OMO Foreign Currency Term Deposit plus interest less Early Redemption fee by applying the following formula:
Early
Redemption
Cash Value
= Nominal Value of Foreign
Currency Term Deposit to be Early Redeemed
(2) Shift of a Conventional OMO Foreign Currency Term Deposit transaction to Bank Indonesia Sale Swap Transaction will be proposed through the means of dealing system determined by Bank Indonesia on Business Days, except on a transaction tender date with a term longer than overnight. (3) Shift of Early Redemption of Conventional OMO Foreign Currency Term Deposit may be proposed for a full nominal value specified on each deal ticket. (4) Proposal for shift of a Conventional OMO Foreign Currency Term Deposit transaction to Bank Indonesia Sale Swap Transaction simultaneously serves as a proposal for Early Redemption of the Foreign Currency OMO Term Deposit transaction to be shifted. (5) Early Redemption of Conventional Foreign Currency Term Deposit set forth in paragraph (4) follows the provisions set forth in Article 137 and Article 138.
Article 141
(1) A Bank Indonesia Sale Swap Transaction derived from the shift of Conventional OMO Foreign Currency Term Deposit transaction will be conducted within the term determined by Bank Indonesia, 7 (seven) calendar days at the shortest. (2) Premium of Bank Indonesia Sale Swap Transaction derived from the shift of Conventional OMO Foreign Currency Term Deposit is determined by Bank Indonesia. (3) A Conventional OMO Participant may propose shift of a Conventional OMO Foreign Currency Term Deposit transaction to Bank Indonesia Sale Swap Transaction from 08.00 West Indonesia Time until 10.00 West Indonesia Time. (4) Bank Indonesia will submit information on premium of Bank Indonesia Sale Swap Transaction to a Conventional OMO Participant at 14.00 West Indonesia Time and simultaneously ask the participant to give confirmation.
(5) If a Conventional OMO Participant does not agree to the premium of Bank Indonesia Sale Swap Transaction determined by Bank Indonesia, the Bank Indonesia Sale Swap Transaction process will not continue and the relevant Conventional OMO Foreign Currency Term Deposit transaction will continue (Early Redemption will not be made). (6) If a Conventional OMO Participant agrees to the premium of Bank Indonesia Sale Swap Transaction determined by Bank Indonesia, the participant will give a deal confirmation of Early Redemption of Conventional OMO Foreign Currency Term Deposit and Bank Indonesia Sale Swap Transaction through the means of dealing system determined by Bank Indonesia. (7) On a shift of Conventional OMO Foreign Currency Term Deposit transaction to Bank Indonesia Sale Swap Transaction, Bank Indonesia will give interest and impose fee on a Conventional OMO Participant under the Early Redemption provisions set forth in Article 138.
Section 9
Settlement of Shift of Conventional OMO Foreign Currency Term Deposit transaction to Bank Indonesia Sale Swap Transaction
Article 142
(1) Bank Indonesia will settle Early Redemption of a shifted Conventional OMO Foreign Currency Term Deposit to Bank Indonesia Sale Swap Transaction by transferring interest to a Conventional OMO Participant’s checking account with a Correspondent Bank less Early Redemption fee, within 2 (two) business days after the shift proposal date. (2) Bank Indonesia will settle the first leg Bank Indonesia Sale Swap Transaction to shift a Conventional OMO Foreign Currency Term Deposit transaction to Bank Indonesia Sale Swap Transaction within 2 (two) business
days after the shift proposal date under the following provisions:
a. Bank Indonesia will record foreign currency shift from Early Redemption of Conventional OMO Foreign Currency Term Deposit transaction to a fund source for settlement of foreign currency Bank Indonesia Sale Swap Transaction. b. Bank Indonesia will credit the rupiah Checking Account in an amount equivalent to the nominal value of a shifted Conventional OMO Foreign Currency Term Deposit transaction, multiplied by the spot rate determined on the Bank Indonesia Sale Swap Transaction date specified in the provisions of Bank Indonesia for open market operation instruments. (3) On the second leg settlement of Bank Indonesia Sale Swap Transaction, Bank Indonesia will conduct the settlement under the following provisions:
a. Bank Indonesia will debit the a Conventional OMO Participant’s rupiah checking account in a nominal amount of foreign currency Bank Indonesia Sale Swap Transaction multiplied by the forward (forward rate) determined on the Bank Indonesia Sale Swap Transaction date specified in the provisions of Bank Indonesia for open market operation instruments. b. Bank Indonesia will make a transfer in foreign currency to a Conventional OMO Participant’s checking account with a Correspondent Bank in a nominal foreign currency amount of Bank Indonesia Swap Transaction.
c. If on the second leg settlement date, a Conventional
OMO Participant does not have adequate rupiah fund to perform its settlement obligation, the Conventional OMO Participant must provide adequate fund on the following business day. d. Settlement of the mandatory Bank Indonesia Sale Swap Transaction set forth in letter c will be conducted
by debiting a Conventional OMO Participant’s rupiah Checking Account with Bank Indonesia.
Part Nine
Spot Transaction
Article 143
(1) Spot Transaction is conducted bilaterally between Bank Indonesia and a Conventional OMO Participant, directly or through an Intermediary Institution. (2) The Spot Transaction set forth in paragraph (1) will be made through the means of dealing system used by Bank Indonesia.
Article 144
Bank Indonesia will settle a Spot Transaction within 2 (two) business days after the transaction date.
Article 145
Bank Indonesia Sale Spot Transaction will be settled under the following provisions:
a. On a settlement date, Bank Indonesia will transfer US dollar fund to a Conventional OMO Participant’s checking account with a Correspondent Bank in a US dollar nominal amount of the agreed Spot Transaction. b. Bank Indonesia will debit a Conventional OMO Participant’s rupiah checking account in the agreed US dollar amount multiplied by the agreed Spot Transaction rate.
c. If on a Spot Transaction settlement date, a Conventional
OMO Participant does not have adequate rupiah fund to perform its settlement obligation, the Conventional OMO Participant must provide adequate rupiah fund for that purpose on the following business day. d. Payment of the Spot Transaction nominal set forth in letter c will be made by debiting a Conventional OMO
Participant’s rupiah checking account with Bank Indonesia.
Article 146
Bank Indonesia Purchase Spot Transaction will be settled under the following provisions:
a. A Conventional OMO Participant must perform its settlement obligation by completing the transfer of US dollar fund in a US dollar nominal fund of the agreed Spot Transaction to the account of Bank Indonesia with a Correspondent Bank no later than the settlement date. b. On a Spot Transaction settlement date, Bank Indonesia will credit a Conventional OMO Participant’s rupiah checking account in a US dollar nominal amount multiplied by the rate agreed in the Spot Transaction.
c. If on the settlement date, a Conventional OMO Participant
fails to perform the settlement obligation set forth in letter a, the Conventional OMO Participant must complete the US dollar fund transfer on the following business day.
Part Ten
Swap Transaction
Section 1
Registration and Information Update for Participation in a Swap Transaction through Tender
Article 147
Conventional OMO Participants and Intermediary Institutions must register themselves and/or update their information prior to participating in a Swap Transaction through tender.
Article 148
(1) A Conventional OMO Participant will submit a request letter for registration to participate in a Swap Transaction through tender together with at least the following information:
a. name of the Conventional OMO Participant; b. Bank Identifier Code (BIC) of the Conventional OMO Participant;
c. 1 (one) Terminal Controller Identifier (TCID) if the
Conventional OMO Participant has a Terminal Controller Identifier (TCID); d. if the Conventional OMO Participant has an account with a Correspondent Bank, the Conventional OMO Participant must submit:
h. name, electronic mail, and signature specimen of the supervisor of the dealer authorized to make Swap transactions as set forth in letter g. (2) An Intermediary Institution will submit a request letter for registration to participate in a Swap transaction through tender together with at least the following information:
a. name of the Intermediary Institution; b. 1 (one) Terminal Controller Identifier (TCID) of the Intermediary Institution;
c. name, electronic mail, and signature specimen of the
broker authorized to make Swap transactions through tender; and d. name, electronic mail, and signature specimen of the supervisor of the broker authorized to make Swap transactions through tender as set forth in letter c. (3) The registration request letter set forth in paragraph (1) and paragraph (2) is signed by the official authorized to represent a Conventional OMO Participant or Intermediary Institution and may only be submitted on the first Swap Transaction through tender by letter to Bank Indonesia. (4) The registration request letter set forth in paragraph (3) must use the format as specified in Appendix VIII, which constitutes an inseparable part hereof. (5) The letter set forth in paragraph (3) must be submitted to Bank Indonesia at the following address:
Bank Indonesia - Monetary Management Department Jl. M.H. Thamrin No. 2 Jakarta 10350 (6) If the correspondence address set forth in paragraph (5) changes, Bank Indonesia will inform it by letter and/or through any other media.
Article 149
The registration request set forth in Article 148 may be submitted together with the submission of Monetary Operation
participation permit as specified in the provisions of Bank Indonesia for monetary operation participation.
Article 150
(1) If the information set forth in Article 148 paragraph (1) and paragraph (2) changes, any Conventional OMO Participant and Intermediary Institution must submit information update by letter by using the format as specified in Appendix VIII, which constitutes an inseparable part hereof. (2) The letter set forth in paragraph (1) must be delivered to Bank Indonesia to the address as specified in Article 148 paragraph (5).
Article 151
Bank Indonesia will grant approval for registration to participate in a Swap Transaction through tender to a Conventional OMO Participant and Intermediary Institution by letter containing the following information:
a. name of the Conventional OMO Participant and/or Intermediary Institution; b. Bank Identifier Code (BIC) of the Conventional OMO Participant;
c. Terminal Controller Identifier (TCID) of the Conventional
OMO Participant and/or Intermediary Institution; d. code of an individual page consisting of active page, historical page, and confirmation page in tender automated system of foreign exchange Monetary Operation; e. Standard Settlement Instruction of the Conventional OMO Participant; f. effective date to participate in a Swap Transaction through tender; and/or g. any other information.
Section 2
Swap Transaction Tender Announcement
Article 152
(1) Bank Indonesia will announce a Swap Transaction tender and its changes at least before the window time through the tender automated system of foreign exchange Monetary Operation, LHBU System, and/or any other means. (2) The Swap Transaction tender announcement includes:
a. type of Swap Transaction; b. means of transaction;
c. tender date;
d. auction name; e. period; f. window time; g. tender method; h. swap premium, if the Swap Transaction is conducted in fixed rate tender method;
i. indicative target, if the Swap Transaction is conducted
in variable rate tender method; j. currency; k. spot rate;
l. settlement date (value date);
m.maturity date; and/or n. any other information.
Section 3
Swap Transaction Tender Bid Submission
Article 153
Conventional OMO Participants and Intermediary Institutions must submit their Swap Transaction tender bids to Bank Indonesia through the means of dealing system and within the window time determined by Bank Indonesia according to the time recorded in the system of Bank Indonesia.
Article 154
(1) A submitted Swap Transaction bid in fixed rate tender method must at least contain the following information:
a. auction name; b. nominal value of bid; and
c. Terminal Controller Identifier (TCID) of a Conventional
OMO Participant if an Intermediary Institution submits a bid for and on behalf of the Conventional OMO Participant, for each term of Swap Transaction through tender. (2) A submitted Swap Transaction bid in variable rate tender method must at least contain the following information:
a. auction name; b. nominal value bid;
c. swap premium; and
d. Terminal Controller Identifier (TCID) of a Conventional OMO Participant if an Intermediary Institution submits a bid for and on behalf of the Conventional OMO Participant, for each term of Swap Transaction through tender. (3) The bid’s minimum submitted nominal value of each Conventional OMO Participant shall be USD5,000,000.00 (five million US dollar) and USD50,000,000.00 (fifty million US dollar) at the maximum at the multiple of USD1,000,000.00 (one million US dollar). (4) If a Swap Transaction is conducted in variable rate tender method, the minimum value of submitted swap premium bid must be Rp1.00 (one rupiah) and further at the multiple of Rp1.00 (one rupiah).
Article 155
(1) Any Conventional OMO Participant and Intermediary Institution may make correction to any bid submitted within the window time of a Swap Transaction through tender. (2) The correction set forth in paragraph (1) must be made under the following provisions:
a. Any Conventional OMO Participant may make correction to any bid information other than the auction name; and/or b. Any Intermediary Institution submitting its bid for Swap Transaction through tender for and on behalf of a Conventional OMO Participant may make correction to any bid information other than the Conventional OMO Participant's Terminal Controller Identifier (TCID) and auction name; (3) The bid correction must meet the requirements for bid submission set forth in Article 154.
Article 156
(1) Conventional OMO Participants and Intermediary Institutions must monitor the accuracy of data on bids for Swap Transaction through tender submitted to Bank Indonesia. (2) An Intermediary Institution must submit information to a Conventional OMO Participant on the submitted Swap Transaction tender for the Conventional OMO Participant’s interest.
Section 4
Determination of Swap Transaction Successful Bidder
Article 157
(1) If fixed rate tender is applied, the successful bidder will be determined through the following calculation:
a. nominal value submitted by a Conventional OMO Participant is won entirely; or b. if required, the nominal value submitted by a Conventional OMO Participant may be partially won in proportion according to the calculation of Bank Indonesia. (2) If variable rate tender is applied, the successful bidder will be determined through the following calculation:
a. Bank Indonesia will determine the accepted swap premium limit; b. for Sale Swap Transaction, Bank Indonesia will determine the won bid in the following manner:
a. nominal of less than USD50,000.00 (fifty thousand US dollar) is rounded to 0 (zero); and b. nominal of USD50,000.00 (fifty thousand US dollar) or more is rounded up to USD100,000.00 (one hundred thousand US dollar).
Article 158
Bank Indonesia may determine that there is no successful bidder in a Swap Transaction tender.
Section 5
Swap Transaction Tender Result Announcement
Article 159
Bank Indonesia will announce Swap Transaction tender result after it has conducted the successful bidder determination process under the following provisions:
a. personally to the successful bidder through a tender automated system of foreign exchange Monetary Operation and/or any other means determined by Bank Indonesia, containing the following information:
period;
the won nominal value;
spot rate;
forward rate;
the won swap premium; and/or
any other information.
b. to all Conventional OMO Participants and Intermediary Institutions through a tender automated system of foreign exchange Monetary Operation, LHBU System, and/or any other means determined by Bank Indonesia, containing the following information:
the won Swap Transaction nominal value;
swap premium, if the Swap Transaction is conducted
in fixed rate tender method;
weighted average of swap premium per term, if a Swap
Transaction is conducted in variable rate tender method; and/or
any other information.
c. Any Conventional OMO Participants may access the Swap
Transaction tender result announcement set forth in letter a on the confirmation page in a tender automated system of foreign exchange Monetary Operation. d. A successful Conventional OMO Participant may not conduct an early termination of Swap Transaction through tender.
Section 6
Swap Transaction through Non-Tender
Article 160
Swap Transaction through non-tender is conducted bilaterally between Bank Indonesia and a Conventional OMO Participant directly or through an Intermediary Institution.
Section 7
Settlement of Swap Transaction
Article 161
(1) Bank Indonesia will conduct the first leg settlement of Bank Indonesia Sale Swap Transaction within 2 (two) business days after the Swap Transaction date. (2) The first leg settlement of Bank Indonesia Sale Swap Transaction will be conducted under the following provisions:
a. Bank Indonesia will credit a Conventional OMO Participant’s rupiah checking account in an amount equal to the first leg settlement value of Bank Indonesia Sale Swap Transaction; b. A Conventional OMO Participant will transfer US dollar fund for each won bid in Swap Transaction through tender or in an amount equal to that agreed in Bank
Indonesia Sale Swap Transaction through non-tender to the account of Bank Indonesia with a Correspondent Bank. (3) The first leg settlement value set forth in paragraph (2) letter a is calculated in a nominal US dollar amount won in Bank Indonesia Sale Swap Transaction through tender or in an amount agreed in Bank Indonesia Sale Swap Transaction through non-tender multiplied by the spot rate. (4) A Conventional OMO Participant will submit confirmation for the first leg settlement of Sale Swap Transaction set forth in paragraph (2) letter b through SWIFT message format MT320 or any other means to Bank Indonesia c.q. Department of Treasury and Loan Operation.
Article 162
If, on the first leg settlement date of Bank Indonesia Sale Swap Transaction, a Conventional OMO Participant fails to perform the settlement obligation in the form of US dollar fund transfer in an amount won in Bank Indonesia Sale Swap Transaction through tender or in an amount agreed in Bank Indonesia Sale Swap Transaction through non-tender to the account of Bank Indonesia with a Correspondent Bank, then the Conventional OMO Participant must settle the US dollar fund transfer on the following business day.
Article 163
(1) A Conventional OMO Participant must provide adequate fund rupiah in its rupiah Checking Account to perform the second leg settlement obligation in Bank Indonesia Sale Swap Transaction. (2) The second leg settlement of Bank Indonesia Sale Swap Transaction will be conducted under the following provisions:
a. Bank Indonesia will debit a Conventional OMO Participant’s rupiah checking account in an amount equal to the second leg settlement value;
b. Bank Indonesia will transfer US dollar fund to a Conventional OMO Participant’s checking account with a Correspondent Bank in a US dollar nominal amount in the second leg settlement. (3) The second leg settlement value set forth in paragraph (2) letter a is calculated in an amount equal to the US dollar nominal amount in the first leg settlement multiplied by the forward rate. (4) A Conventional OMO Participant will submit confirmation for the second leg settlement of Sale Swap Transaction set forth in paragraph (2) letter a through SWIFT message format MT300 or any other means to Bank Indonesia c.q. Department of Treasury and Loan Operation.
Article 164
(1) If, on the settlement date of a Bank Indonesia Sale Swap Transaction, a Conventional OMO Participant does not have adequate rupiah fund to perform its settlement obligation, the Conventional OMO Participant must provide adequate rupiah fund for that purpose on the following business day. (2) The mandatory second leg settlement of Bank Indonesia Sale Swap Transaction set forth in paragraph (1) will be conducted by debiting a Conventional OMO Participant’s rupiah checking account with Bank Indonesia.
Article 165
(1) Bank Indonesia will conduct the first leg settlement of Bank Indonesia Purchase Swap Transaction within 2 (two) business days after the Purchase Swap Transaction date. (2) The first leg settlement of Bank Indonesia Purchase Swap Transaction will be conducted under the following provisions:
a. Bank Indonesia will debit a Conventional OMO Participant’s rupiah checking account in an amount
equal to the first leg settlement value of Bank Indonesia Purchase Swap Transaction; b. Bank Indonesia will transfer US dollar fund for each won bid in Purchase Swap Transaction through tender or in an amount equal to that agreed in Bank Indonesia Purchase Swap Transaction through nontender to the Conventional OMO Participant’s account with a Correspondent Bank. (3) The first leg settlement value set forth in paragraph (2) letter a is calculated in a nominal US dollar amount won in Bank Indonesia Purchase Swap Transaction through tender or in an amount agreed in Bank Indonesia Purchase Swap Transaction through non-tender multiplied by the spot rate. (4) A Conventional OMO Participant will submit confirmation for the first leg settlement of Purchase Swap Transaction set forth in paragraph (2) letter b through SWIFT message format MT300 or any other means to Bank Indonesia c.q. Department of Treasury and Loan Operation.
Article 166
(1) If, on the first leg settlement date of Bank Indonesia Purchase Swap Transaction, a Conventional OMO Participant does not have adequate rupiah fund to perform its settlement obligation, the Conventional OMO Participant must provide adequate rupiah fund for that purpose on the following business day. (2) The mandatory first leg settlement of Bank Indonesia Purchase Swap Transaction set forth in paragraph (1) will be conducted by debiting a Conventional OMO Participant’s rupiah checking account with Bank Indonesia.
Article 167
(1) The second leg settlement of Bank Indonesia Purchase Swap Transaction will be conducted under the following provisions:
a. Bank Indonesia will debit a Conventional OMO Participant’s rupiah checking account in an amount equal to the second leg settlement value. b. A Conventional OMO Participant will transfer US dollar fund for each won bid in Bank Indonesia Purchase Swap Transaction through tender or in an amount equal to that agreed in Bank Indonesia Purchase Swap Transaction through non-tender to the account of Bank Indonesia with a Correspondent Bank. (2) The second leg settlement value set forth in paragraph (1) letter a is calculated in a nominal US dollar amount won in Bank Indonesia Purchase Swap Transaction through tender or in an amount agreed in Bank Indonesia Purchase Swap Transaction through non-tender multiplied by the spot rate.
Article 168
If, on the second leg settlement date of Bank Indonesia Purchase Swap Transaction, a Conventional OMO Participant fails to perform the settlement obligation set forth in Article 167 paragraph (1) letter b, the Conventional OMO Participant must perform the settlement obligation through US dollar fund transfer on the following business day.
Article 169
If, after a Bank Indonesia Sale Swap Transaction and Bank Indonesia Purchase Swap Transaction, the first leg settlement date or the second leg settlement date is determined as a holiday by the government, the settlement will be conducted on the following business day without calculating any swap premium increase or decrease for such holiday.
Part Eleven
Forward Transaction
Section 1
Forward Transaction Tender Announcement
Article 170
(1) Bank Indonesia will announce Forward Transaction plan through tender and its changes at least before the window time through LHBU System and/or any other means. (2) The announcement of Forward Transaction plan through tender includes:
a. type of Forward Transaction; b. means of transaction;
c. tender date;
d. fund transfer tenor; e. window time; f. tender method; g. settlement date (value date); h. forward point, if it is a fixed rate tender;
i. indicative target, if it is a variable rate tender;
j. value type; k. spot rate; and/or
l. any other information.
Section 2
Submission of Forward Transaction Bids through Tender
Article 171
Conventional OMO Participants and Intermediary Institutions will submit their Forward Transaction bids to Bank Indonesia through the means of dealing system and within the window time determined by Bank Indonesia.
Article 172
(1) Any submitted Forward Transaction bids through tender contain the following information:
a. name of Conventional OMO Participant; b. transaction date;
c. tenor;
d. settlement date (value date); e. value type;
f. nominal value for fixed rate tender; g. nominal value and forward point for variable rate tender; h. Standard Settlement Instruction; and/or
i. any other information.
(2) The Forward Transaction bids through tender set forth in paragraph (1) will be submitted 2 (two) times at the maximum for each submitted tenor. (3) The bid’s minimum submitted nominal value of each Conventional OMO Participant and Intermediary Institution shall be USD1,000,000.00 (one million US dollar) and further at the multiple of USD1,000,000.00 (one million US dollar). (4) Any submitted forward point of any Conventional OMO Participant and Intermediary Institution must at least amount to Rp1.00 (one rupiah) and further at the multiple of Rp1.00 (one rupiah).
Article 173
(1) Any Conventional OMO Participant and Intermediary Institution may make correction 1 (one) time to any bid submitted within the window time of a Forward Transaction through tender. (2) The correction set forth in paragraph (1) may be made to the information set forth in Article 172 paragraph (1), except information on a Conventional OMO Participant's name and tenor of Forward Transaction through tender. (3) In the event of correction to the bid amount (nominal value) set forth in paragraph (1), the bid amount (nominal value) must meet the requirements for nominal value bid set forth in Article 172 paragraph (3).
Article 174
(1) Conventional OMO Participants and Intermediary Institutions must monitor the accuracy of data on bids for Forward Transaction through tender submitted to Bank Indonesia.
(2) An Intermediary Institution must submit information to a Conventional OMO Participant on the submitted Forward Transaction through tender for the Conventional OMO Participant’s interest. (3) If a Conventional OMO Participant and Intermediary Institution submits bids incompliant with the provisions set forth in Article 172 and they do not make any correction to the bids within the window time of Forward Transaction through tender set forth in Article 173, then the said bids will be declared canceled.
Article 175
Bank Indonesia may reject a bid for Forward Transaction through tender submitted by a Conventional OMO Participant if the said participant does not have adequate counterparty limit.
Section 3
Determination of Forward Transaction Successful Bidder
Article 176
(1) If fixed rate tender is applied to a Forward Transaction, the successful bidder will be determined through the following calculation:
a. nominal value submitted by a Conventional OMO Participant is won entirely; or b. if required, the nominal value submitted by a Conventional OMO Participant may be partially won in proportion according to the calculation of Bank Indonesia. (2) If variable rate tender is applied to a Forward Transaction, the successful bidder will be determined through the following calculation:
a. Bank Indonesia will determine the limit of accepted forward point; b. for Sale Forward Transaction, Bank Indonesia will determine the won bid in the following manner:
Article 177
Bank Indonesia may determine that there is no successful bidder in a Forward Transaction through tender.
Section 4
Announcement of Forward Transaction Result through Tender
Article 178
Bank Indonesia will announce Forward Transaction result through tender after it has conducted the successful bidder determination process under the following provisions:
a. announce the determined successful bidder to all Conventional OMO Participants and Intermediary Institutions entirely through LHBU System and/or any other means containing information on the nominal value of the won Forward Transaction, weighted average of forward point per tenor, and/or any other information; b. confirm to the successful bidder in person through the means of dealing system determined by Bank Indonesia containing:
the nominal value of the Forward Transaction won by a
Conventional OMO Participant;
the won forward point;
transaction period;
value date;
request for Standard Settlement Instruction from a
Conventional OMO Participant; and/or
rupiah Checking Account number of the Conventional
OMO Participant; and/or
any other information;
c. if a bid is submitted through an Intermediary Institution,
the confirmation set forth in letter b will be made as follows:
if a Conventional OMO Participant does not have the
means of dealing system determined by Bank Indonesia, confirmation must be made through an Intermediary Institution; or
if a Conventional OMO Participant has the means of
dealing system determined by Bank Indonesia, confirmation must be made to the Conventional OMO Participant.
Section 5
Forward Transaction through Non-Tender
Article 179
Forward Transaction through non-tender is conducted bilaterally between Bank Indonesia and a Conventional OMO Participant, directly or through an Intermediary Institution.
Section 6
Settlement of Forward Transaction
Article 180
(1) On the value date of Bank Indonesia Sale Forward Transaction, Bank Indonesia will transfer US dollar fund to a Conventional OMO Participant’s account with a Correspondent Bank in an amount equal to the US dollar nominal value won in the Bank Indonesia Sale Forward Transaction through tender or in an amount agreed in the Bank Indonesia Sale Forward Transaction through nontender. (2) Bank Indonesia will debit a Conventional OMO Participant’s rupiah checking account in an amount equal to the US dollar nominal value won in Bank Indonesia Sale Forward Transaction through tender or in an amount agreed in Bank Indonesia Sale Forward Transaction through non-tender multiplied by the settlement rate. (3) The settlement rate of Bank Indonesia Sale Forward Transaction is JISDOR on a transaction date plus the forward point won by a Conventional OMO Participant for Bank Indonesia Sale Forward Transaction through tender
or the rate agreed for Bank Indonesia Sale Forward Transaction through non-tender.
Article 181
(1) If, on the settlement date of Bank Indonesia Sale Forward Transaction, a Conventional OMO Participant does not have adequate rupiah fund to perform its settlement obligation, the Conventional OMO Participant must provide adequate rupiah fund for that purpose on the following business day. (2) The payment of nominal Bank Indonesia Sale Forward Transaction set forth in paragraph (1) will be made by debiting the a Conventional OMO Participant’s rupiah checking account with Bank Indonesia.
Article 182
(1) On the value date of Bank Indonesia Purchase Forward Transaction, Bank Indonesia will credit a Conventional OMO Participant’s rupiah checking account in an amount equal to the US dollar nominal value won in Bank Indonesia Purchase Forward Transaction through tender or in an amount agreed in a Bank Indonesia Purchase Forward Transaction through non-tender multiplied by the settlement rate. (2) At least on a settlement date, a Conventional OMO Participant must transfer US dollar fund for each won bid in Bank Indonesia Purchase Forward Transaction through tender or in an amount equal to that agreed in Bank Indonesia Purchase Forward Transaction through non-tender to the account of Bank Indonesia with a Correspondent Bank. (3) The settlement rate of Bank Indonesia Purchase Forward Transaction is JISDOR on a transaction date plus the forward point won by a Conventional OMO Participant for the Bank Indonesia Purchase Forward Transaction through tender or the rate agreed for the Bank Indonesia Purchase Forward Transaction through non-tender.
Article 183
If, on the settlement date of Bank Indonesia Purchase Swap Transaction, a Conventional OMO Participant fails to perform the settlement obligation set forth in Article 182 paragraph (2), the Conventional OMO Participant must perform the settlement obligation through US dollar fund transfer on the following business day.
Article 184
If, after Bank Indonesia Sale Forward Transaction and Bank Indonesia Purchase Forward Transaction, the settlement date is determined as a holiday by the government, the settlement will be conducted on the following business day.
CHAPTER III
SHARIA OMO TRANSACTIONS
Article 185
Sharia OMO Participants and Intermediary Institutions shall be responsible for the accuracy of Sharia OMO bid data submitted to Bank Indonesia.
Article 186
Sharia OMO Participants and Intermediary Institutions may not cancel Sharia OMO bid submitted to Bank Indonesia.
Part One
SBIS Issuance
Section 1
SBIS Tender Announcement
Article 187
(1) Bank Indonesia will announce SBIS tender plan and its changes at least before the window time through BI-ETP System, LHBU System, and/or any other means.
(2) The SBIS tender plan announcement set forth in paragraph (1) contains the following information:
a. means of transactions; b. window time;
c. period;
d. indicative target; e. yield rate reference; f. tender date; g. maturity date; h. date and time of settlement; and/or
i. any other information.
Section 2
SBIS Tender Bid Submission
Article 188
A Sharia OMO Participant, directly and/or through an Intermediary Institution, will submit SBIS tender bid to Bank Indonesia through BI-ETP System within the determined window time.
Article 189
(1) The SBIS bid submission set forth in Article 188 contains the nominal value according to the term of the issued SBIS. (2) A Sharia OMO Participant may submit its bid set forth in paragraph (1) in a minimum nominal value of Rp1,000,000,000.00 (one billion rupiah) and further at the multiple of Rp100,000,000.00 (one hundred million rupiah).
Section 3
Determination of SBIS Successful Bidder
Article 190
Bank Indonesia will determine the SBIS successful bidder under the following provisions:
a. nominal value submitted by a Sharia OMO Participant is won entirely; or b. if required, the nominal value submitted by a Sharia OMO Participant may be partially won in proportion according to the calculation of Bank Indonesia, with the smallest nominal SBIS rounding of Rp1,000,000.00 (one million rupiah).
Article 191
Bank Indonesia may determine that there is no successful bidder in SBIS tender.
Section 4
SBIS Tender Result Announcement
Article 192
Bank Indonesia will announce SBIS tender result after it has conducted the successful bidder determination process under the following provisions:
a. personally to the successful bidder through BI-ETP System and/or any other means, containing the nominal value, yield rate, the won SBIS transaction value, and/or other information; and b. entirely through BI-ETP System, LHBU System, and/or any other means containing the nominal value of all incoming bids, nominal value of all won bid, yield rate, and/or any other information.
Section 5
SBIS Settlement
Article 193
(1) Bank Indonesia will settle SBIS tender result no later than 1 (one) Business Day after the announcement of SBIS tender result.
(2) A Sharia OMO Participant must have fund in its rupiah Checking Account adequate for SBIS tender result settlement.
Article 194
(1) Bank Indonesia will conduct Fund Settlement of SBIS tender result by debiting a Sharia OMO Participant’s rupiah Checking Account and Securities Settlement by crediting a Sharia OMO Participant's Securities Account in an amount equal to SBIS nominal value. (2) Fund Settlement and Securities Settlement set forth in paragraph (1) are made through gross to gross and DVP mechanisms.
Article 195
(1) If the fund in a Sharia OMO Participant's rupiah Checking Account is not sufficient to perform the settlement obligation until before the cut-off warning period of BI-RTGS System resulting in failure of SBIS tender settlement, BI-SSSS will automatically cancel the SBIS tender transaction won by the Sharia OMO Participant. (2) If, in the same SBIS tender, there is more than 1 (one) SBIS transaction cancellation as set forth in paragraph (1), then to calculate the imposed temporary suspension from participating in SMO activities, the transaction cancellation will be counted 1 (one) time.
Article 196
(1) SBIS settlement will be made on the maturity date. (2) BI-SSSS will automatically make payment settlement from BI-RTGS System is opened until before the cut-off warning period of BI-RTGS System. (3) Bank Indonesia will redeem any mature SBIS based on SBIS ownership recorded in BI-SSSS on 1 (one) Business Day prior to the SBIS maturity date.
(4) If, after a transaction, SBIS maturity date is determined as a holiday by the government, SBIS settlement will be made on the following Business Day, without calculating any extra discount for such holiday. (5) On SBIS maturity date, Bank Indonesia will settle SBIS by:
b. For a Sharia OMO Participant whose headquarter is located outside Indonesia:
member of the board of directors or official authorized to sign the covenant (wa’d). b. A Sharia OMO Participant whose headquarter is located outside Indonesia must submit:
(1) The documents set forth in Article 197 and Article 198 are submitted with a cover letter addressed to Bank Indonesia:
Bank Indonesia - Monetary Management Department Jl. M.H. Thamrin No. 2 Jakarta 10350 (2) If the correspondence address set forth in paragraph (1) changes, Bank Indonesia will inform it by letter and/or through any other media.
Article 201
Bank Indonesia will notify a Sharia OMO Participant of the approval to participate in a Sharia OMO Repo Transaction by letter or BI-ETP System.
Section 2
Announcement of Sharia OMO Repo Transaction Tender
Article 202
(1) Bank Indonesia will announce Sharia OMO Repo Transaction tender plan and its changes at least before the window time through BI-ETP System, LHBU System, and/or any other means. (2) The Sharia OMO Repo Transaction tender plan announcement set forth in paragraph (1) contains the following information:
a. means of transaction; b. tender day and date;
c. window time;
d. period; e. maturity date; f. tender method; g. indicative target, if it is a variable rate tender; h. repo margin, if it is a fixed rate tender;
i. type and series of securities to be repurchased;
j. haircut; k. date and time of settlement; and/or
l. any other information.
Section 3
Submission of Bids for Sharia OMO Repo Transaction Tender
Article 203
A Sharia OMO Participant, directly and/or through an Intermediary Institution, will submit Sharia OMO Repo Transaction tender bid to Bank Indonesia through BI-ETP System within the determined window time.
Article 204
(1) The submission of Sharia OMO Repo Transaction tender bid set forth in Article 203 includes the following information:
a. nominal value, type, and series of repurchased securities in fixed rate tender method; or b. nominal value, type, and series of repurchased securities in variable rate tender method, for each term of Sharia OMO Repo Transaction to be made. (2) A Sharia OMO Participant may submit its bid in a minimum nominal value of Rp1,000,000,000.00 (one billion rupiah) and further at the multiple of Rp100,000,000.00 (one hundred million rupiah). (3) If tender is conducted in variable rate tender method, any repo margin bid shall be made at the multiple of 0.01% (zero point zero one percent).
Section 4
Determination of Successful Bidder of Sharia OMO Repo Transaction Tender
Article 205
(1) If fixed rate tender is applied to a Sharia OMO Repo Transaction, the successful bidder will be determined through the following calculation:
a. nominal value submitted by a Sharia OMO Participant is won entirely; or b. if required, the nominal value submitted by a Sharia OMO Participant may be partially won in proportion according to the calculation of Bank Indonesia, with the smallest nominal rounding of Rp1,000,000.00 (one million rupiah). (2) If variable rate tender is applied to a Sharia OMO Repo Transaction, the successful bidder will be determined through the following calculation:
a. Bank Indonesia will determine the lowest accepted discount rate or Stop Out Rate (SOR); and b. Bank Indonesia will determine the won bid through the following:
Bank Indonesia will announce Sharia OMO Repo Transaction tender result after it has conducted the successful bidder determination process under the following provisions:
a. personally to the successful bidder through BI-ETP System and/or any other means, containing the nominal value, transaction value, the won repo margin, and/or other information; and b. entirely through BI-ETP System, LHBU System, and/or any other means containing the nominal value of all incoming bids, nominal value of all won bid, Stop Out Rate (SOR), weighted average of repo margin, and/or any other information.
Section 6
Settlement of Sharia OMO Repo Transaction
Article 208
(1) Bank Indonesia will conduct the first leg settlement no later than 1 (one) Business Day after the announcement of Sharia OMO Repo Transaction tender result. (2) A Sharia OMO Participant must have securities in its Securities Account in an amount adequate for the first leg settlement. (3) The first leg settlement is made through BI-RTGS and BISSSS by gross to gross and DVP mechanisms as follows:
a. Securities Settlement by debiting Securities Account in an amount equal to the nominal value of repurchased securities; and b. Fund Settlement by crediting rupiah Checking Account in an amount equal to the first leg settlement value.
Article 209
Calculation of the first leg settlement value refers to the provisions of Bank Indonesia for criteria and requirements for securities in monetary operation.
Article 210
(1) If a Sharia OMO Participant does not have the type and series of securities in its Securities Account adequate to perform its settlement obligation until the determined time resulting in failure of the first leg settlement, BISSSS will automatically cancel the Sharia OMO Participant's Repo Transaction. (2) If, in the same tender, there is more than 1 (one) cancellation of Sharia OMO Repo Transaction (first leg), then to calculate the imposed temporary suspension from participating in SMO activities, the transaction cancellation will be counted 1 (one) time.
Article 211
(1) On the due date of the second leg Sharia OMO Repo Transaction, BI-SSSS will automatically conduct the second leg settlement from BI-RTGS System is opened until before the cut-off warning period of BI-RTGS System. (2) A Sharia OMO Participant must have fund in its rupiah Checking Account adequate for the second leg settlement. (3) The second leg settlement is conducted through BI-RTGS and BI-SSSS by gross to gross and DVP mechanisms as follows:
a. Fund Settlement by debiting the rupiah Checking Account in an amount equal to the second leg settlement value; and b. Securities Settlement by crediting the Securities Account in an amount equal to the nominal value of due securities in a Sharia OMO Repo Transaction.
Article 212
Calculation of the second leg settlement value refers to the provisions of Bank Indonesia for criteria and requirements for securities in monetary operation.
Article 213
If, after a Sharia OMO Repo Transaction, the due date of the second leg transaction is determined as a holiday by the government, the settlement will be conducted on the following Business Day without calculating additional repo margin for the holiday.
Article 214
(1) If fund in a rupiah Checking Account is inadequate to perform the second leg settlement obligation until before the cut-off warning period of BI-RTGS resulting in the failure of the second leg settlement, BI-SSSS will automatically cancel the second leg Sharia OMO Repo Transaction. (2) If a Sharia OMO Participant fails to conduct the second leg settlement set forth in paragraph (1), a Sharia OMO Repo Transaction will be conducted as an outright securities sale transaction of the said participant.
Article 215
If an outright sale transaction is made by a Sharia OMO Participant, the following will be conducted:
a. Rupiah Checking Account will be debited or credited by calculating the accrued yield as follows:
debited in an amount equal to the accrued yield paid by Bank Indonesia in the first leg plus the accrued yield from the outright purchase transaction date 1 (one) Business Day after the outright sale transaction date;
4. if a Sharia OMO Participant receives yield payment
within 1 (one) Business Day after the first leg settlement date and the next yield payment within 1 (one) Business Day after the outright transaction, the rupiah Checking Account will be credited in an amount equal to the accrued yield from the first leg settlement date until the yield payment date 1 (one) Business Day after the first leg settlement date and will be debited in an amount equal to the accrued yield from the outright sale transaction date until the yield payment date 1 (one) Business Day after the outright sale transaction;
5. if a Sharia OMO Participant receives yield payment on
the outright sale transaction date, rupiah Checking Account will be debited in an amount equal to the accrued yield paid to the participant on the first leg;
6. if a Sharia OMO Participant receives yield payment in
the period of Sharia OMO Repo Transaction and yield payment is made 1 (one) Business Day after the outright sale transaction date, the rupiah Checking Account will be debited in an amount equal to the accrued yield paid to the participant in the first leg plus accrued yield from the outright sale transaction date until the yield payment date 1 (one) Business Day after the outright sale transaction date; or
7. if a Sharia OMO Participant receives yield payment 2
(two) times in a Sharia OMO Repo Transaction, the rupiah Checking Account will be debited in an amount equal to the accrued yield paid to the participant in the first leg settlement and credited in an amount equal to the accrued yield from the last yield payment in a
Sharia OMO Repo Transaction until the outright sale transaction date. b. Rupiah Checking Account will be credited to calculate the haircut to which a Sharia OMO Participant is entitled; and
c. Rupiah Checking Account will be debited in an amount
equal to the repo margin payable by a Sharia OMO Participant to Bank Indonesia.
Article 216
If there is 1 (one) cancellation of the second leg settlement of a Sharia OMO Repo Transaction on the same day, then to calculate the imposed temporary suspension from participating in SMO activities, the transaction cancellation will be counted 1 (one) time.
Section 7
Securities Yield
Article 217
Treatment of securities yield in the event of failure of the second leg settlement of a Sharia OMO Repo Transaction is stipulated as follows:
a. If, after the date of an outright sale transaction, Bank Indonesia receives payment of yield of repurchased securities by a Sharia OMO Participant, then the received yield will belong to Bank Indonesia. b. If, on the date of an outright sale transaction, a Sharia OMO Participant receives payment of yield of repurchased securities by a Sharia OMO Participant, then Bank Indonesia will debit the rupiah Checking Account in an amount equal to the yield received by the Conventional OMO Participant.
c. If, after the date of an outright sale transaction, a Sharia
OMO Participant receives payment of yield of repurchased securities by a Sharia OMO Participant, then Bank Indonesia will debit the rupiah Checking Account in an
amount equal to the coupon or yield received by the Sharia OMO Participant.
Part Three
Sharia OMO Reverse Repo Transaction
Section 1
Preparation of Sharia OMO Reverse Repo Transaction
Article 218
(1) A Sharia OMO Participant will submit a Sharia OMO Reverse Repo Transaction after signing a covenant (wa’d) to resell securities in the said transaction with Bank Indonesia. (2) Signing of the covenant (wa'd) set forth in paragraph (1) is regulated as follows:
a. For a Sharia OMO Participant whose headquarter is located in Indonesia:
(3) The covenant (wa’d) set forth in paragraph (1) is duly duty stamped and attached with supporting documents as required by Bank Indonesia. (4) Example of the covenant (wa'd) set forth in paragraph (1) is specified in Appendix XII, which constitutes an inseparable part hereof.
Article 219
The supporting documents set forth in Article 218 paragraph (3) includes:
a. For a Sharia OMO Participant whose headquarter is located in Indonesia must submit:
(wa’d), if the covenant (wa’d) is not signed by the Chief Executive Officer (CEO); and
3. a copy of valid identity card in the form of passport or
Resident's Identity Card (KTP) of the Chief Executive Officer (CEO) or the Sharia OMO Participant's official authorized to sign the covenant (wa’d).
Article 220
(1) The covenant (wa’d) set forth in Article 218 paragraph (1) is signed before a Sharia OMO Participant submits a Sharia OMO Reverse Repo Transaction to Bank Indonesia for the first time. (2) A Sharia OMO Participant must submit any amendment to the covenant (wa’d) in the event of amendment to:
a. covenant (wa’d); b. articles of association of the Sharia OMO Participant or regional regulation on the authority of the board of directors to represent the Sharia OMO Participant; and/or
c. the Sharia OMO Participant's internal regulation on
delegation of authority.
Article 221
(1) The documents set forth in Article 218 and Article 219 are submitted with a cover letter addressed to Bank Indonesia:
Bank Indonesia - Monetary Management Department Jl. M.H. Thamrin No. 2 Jakarta 10350 (2) If the correspondence address set forth in paragraph (1) changes, Bank Indonesia will inform it by letter and/or through any other media.
Article 222
Bank Indonesia will notify a Sharia OMO Participant of the approval to participate in a Sharia OMO Repo Transaction by letter or BI-ETP System.
Section 2
Announcement of Sharia OMO Reverse Repo Transaction Tender Plan
Article 223
(1) Bank Indonesia will announce Sharia OMO Reverse Repo Transaction tender plan and its changes at least before the window time through BI-ETP System, LHBU System, and/or any other means. (2) The Sharia OMO Reverse Repo Transaction tender plan announcement set forth in paragraph (1) contains the following information:
a. means of transaction; b. tender day and date;
c. window time;
d. period; e. maturity date; f. tender method; g. indicative target, if it is a variable rate tender; h. reverse repo margin, if it is a fixed rate tender;
i. type and series of securities to be reverse repurchased;
j. haircut; k. date and time of settlement; and/or
l. any other information.
Section 3
Submission of Bids for Sharia OMO Reverse Repo Transaction Tender
Article 224
A Sharia OMO Participant, directly and/or through an Intermediary Institution, will submit its bid for Sharia OMO Reverse Repo transaction bid to Bank Indonesia through BIETP System within the determined window time.
Article 225
(1) The submitted Sharia OMO Reverse Repo Transaction tender bid set forth in Article 224 includes the following information:
a. nominal value, for fixed rate tender; or b. nominal value and margin reverse repo, for variable rate tender, for each term of Sharia OMO Reverse Repo Transaction to be made. (2) A Sharia OMO Participant may submit its bid in a minimum nominal value of Rp1,000,000,000.00 (one billion rupiah) and further at the multiple of Rp100,000,000.00 (one hundred million rupiah). (3) If tender is conducted in variable rate tender method, any reverse repo margin bid shall be made at the multiple of 0.01% (zero point zero one percent).
Section 4
Determination of Success Bidder in Sharia OMO Reverse Repo Transaction Tender
Article 226
(1) If fixed rate tender is applied to a Sharia OMO Reverse Repo Transaction, the successful bidder will be determined through the following calculation:
a. nominal value submitted by a Sharia OMO Participant is won entirely; or b. if required, the nominal value bid submitted by a Sharia OMO Participant may be partially won in proportion according to the calculation of Bank Indonesia, with the smallest nominal rounding of Rp1,000,000.00 (one million rupiah). (2) If variable rate tender is applied to a Sharia OMO Reverse Repo Transaction, the successful bidder will be determined through the following calculation:
a. Bank Indonesia will determine the highest accepted reverse repo margin or Stop Out Rate (SOR); and
b. Bank Indonesia will determine the won bid through the following:
offered reverse repo margin (bid rate), Stop Out Rate (SOR), weighted average of reverse repo margin, and/or any other information.
Section 6
Settlement of Sharia OMO Reverse Repo Transaction
Article 229
(1) Bank Indonesia will conduct the first leg settlement no later than 1 (one) Business Day after the announcement of Sharia OMO Reverse Repo Transaction tender result. (2) A Sharia OMO Participant must have fund in its rupiah Checking Account adequate for the first leg settlement. (3) The first leg settlement is made through BI-RTGS and BISSSS by gross to gross and DVP mechanisms as follows:
a. Fund Settlement by debiting the rupiah Checking Account in an amount equal to the first leg settlement value; and b. Securities Settlement by crediting Securities Account in an amount equal to the nominal value of the won securities.
Article 230
Calculation of the first leg settlement value refers to the provisions of Bank Indonesia for criteria and requirements for securities in monetary operation.
Article 231
(1) If the fund in a rupiah Checking Account is inadequate to perform the settlement obligation until before the cut-off warning period of BI-RTGS resulting in the failure of the first leg settlement, BI-SSSS will automatically cancel the Sharia OMO Reverse Repo Transaction of the relevant Sharia OMO Participant. (2) If, in the same tender, there is more than 1 (one) cancellation of Sharia OMO Reverse Repo Transaction (first leg), then to calculate the imposed temporary
suspension from participating in SMO activities, the transaction cancellation will be counted 1 (one) time.
Article 232
(1) On the due date of the second leg Sharia OMO Reverse Repo Transaction, BI-SSSS will automatically conduct the second leg settlement from BI-RTGS System is opened until before the cut-off warning period of BI-RTGS System. (2) A Sharia OMO Participant must have the type and series of securities adequate in the Securities Account for the second leg settlement. (3) The second leg settlement is made through BI-RTGS and BI-SSSS by gross to gross and DVP mechanisms as follows:
a. Securities Settlement by debiting Securities Account in an amount equal to the nominal value of due securities in the Sharia OMO Reverse Repo Transaction (second leg). b. Fund Settlement by crediting rupiah Checking Account in an amount equal to the second leg settlement value.
Article 233
Calculation of the second leg settlement value refers to the provisions of Bank Indonesia for criteria and requirements for securities in monetary operation.
Article 234
If, after a Sharia OMO Reverse Repo Transaction, the due date of the second leg transaction is determined as a holiday by the government, the settlement will be made on the following Business Day without calculating additional reverse repo margin for the holiday.
Article 235
(1) If the type and series of securities in a rupiah Checking Account is inadequate to perform the second leg
settlement obligation until before the cut-off warning period of BI-RTGS resulting in the failure of the second leg settlement, BI-SSSS will automatically cancel the second leg Sharia OMO Reverse Repo Transaction of the relevant Sharia OMO Participant. (2) If a Sharia OMO Participant fails to conduct the second leg settlement, a Sharia OMO Reverse Repo Transaction will be conducted as an outright purchase transaction of the said participant. (3) Calculation of outright purchase transaction settlement and use of securities price in an outright purchase transaction refers to the provisions of Bank Indonesia for criteria and requirements for securities in monetary operation.
Article 236
If an outright purchase transaction is made by a Sharia OMO Participant, the following will be conducted:
a. Rupiah Checking Account will be debited or credited by calculating the accrued yield as follows:
yield payment date within 1 (one) Business Day after the outright purchase transaction date;
4. if Bank Indonesia receives yield payment within 1 (one)
Business Day after the first leg settlement date and the next yield payment within 1 (one) Business Day after an outright purchase transaction, the rupiah Checking Account will be debited in an amount equal to the accrued yield from the first leg settlement date until the yield payment date within 1 (one) Business Day after the first leg settlement date and will be credited in an amount equal to the accrued yield from the outright purchase transaction date until the yield payment date within 1 (one) Business Day after the outright purchase transaction;
5. if Bank Indonesia receives yield payment on an
outright purchase transaction date, the rupiah Checking Account will be credited in an amount equal to the accrued yield paid to Bank Indonesia in the first leg;
6. if Bank Indonesia receives yield payment in the period
of Sharia OMO Reverse Repo Transaction and yield payment is made 1 (one) Business Day after an outright purchase transaction date, the rupiah Checking Account will be credited in an amount equal to the accrued yield paid to Bank Indonesia in the first leg plus accrued yield from an outright purchase transaction date until the yield payment date within 1 (one) Business Day after an outright purchase transaction date; or
7. if Bank Indonesia receives yield payment 2 (two) times
within a period of Sharia OMO Reverse Repo Transaction, the rupiah Checking Account will be credited in an amount equal to the accrued yield paid to Bank Indonesia in the first leg settlement and will be debited in an amount equal to the accrued yield from the last yield payment in a period of Sharia OMO
Reverse Repo Transaction until the outright purchase transaction date. b. For failure of the second leg settlement, Bank Indonesia will not pay reverse repo margin to a Sharia OMO Participant.
Article 237
If, in the same tender, there is more than 1 (one) cancellation of Sharia OMO Reverse Repo Transaction (second leg), then to calculate the imposed temporary suspension from participating in SMO activities, the transaction cancellation will be counted 1 (one) time.
Section 7
Securities Yield
Article 238
Treatment of securities yield in the event of failure of the second leg settlement of a Sharia OMO Reverse Repo Transaction is stipulated as follows:
a. If, after an outright purchase transaction date, a Sharia OMO Participant receives payment of yield for securities reverse repurchased by Bank Indonesia, then the received yield will belong to the Sharia OMO Participant. b. If, on an outright purchase transaction date, Bank Indonesia receives payment of yield for securities reverse repurchased by Bank Indonesia, then Bank Indonesia will credit the rupiah Checking Account of the Sharia OMO Participant in an amount equal to the yield received by Bank Indonesia.
c. If, on an outright purchase transaction date, Bank
Indonesia receives payment of yield for securities reverse repurchased by Bank Indonesia, then on the yield payment date, Bank Indonesia will credit the rupiah Checking Account of the Sharia OMO Participant in an amount equal to the yield received by Bank Indonesia.
Part Four
Tender of Outright SBSN Purchase and Sale Transaction in the Secondary Market
Section 1
Announcement of Tender of Outright SBSN Purchase and Sale Transaction in the Secondary Market
Article 239
(1) Bank Indonesia will announce the tender plan and its changes at least before the window time through BI-ETP System, LHBU System, and/or any other means. (2) Announcement of bids for tender plan of outright SBSN purchase and sale transaction in the secondary market includes the following information:
a. means of transaction; b. tender day and date;
c. window time;
d. type and series of the transacted SBSN; e. indicative target, if it is a variable rate tender; f. yield or price of SBSN, if it is a fixed rate tender; g. date and time of settlement; and/or h. any other information.
Section 2
Submission of Bids for Tender of Outright SBSN Purchase and Sale Transaction in the Secondary Market
Article 240
Peserta OPT Syariah secara langsung dan/atau melalui Lembaga Perantara mengajukan penawaran lelang transaksi pembelian dan penjualan SBSN secara putus (outright) di pasar sekunder kepada Bank Indonesia melalui Sistem BI-ETP dalam window time yang ditetapkan. A Sharia OMO Participant, directly and/or through an Intermediary Institution, will submit its bid for outright SBSN purchase and
sale transaction in the secondary market to Bank Indonesia through BI-ETP System within the determined window time.
Article 241
(1) Submission of bids for tender of outright SBSN purchase and sale transaction in the secondary market includes the following information:
a. nominal value, for fixed rate tender; or b. nominal value and yield or price of SBSN, for variable rate tender. (2) A Sharia OMO Participant may submit its bid in a minimum nominal value of Rp1,000,000,000.00 (one billion rupiah) and further at the multiple of Rp100,000,000.00 (one hundred million rupiah). (3) If variable rate tender is applied, any bid for the yield will be submitted at the multiple of 0.01% (zero point zero one percent).
Section 3
Determination of Successful Bidder of Outright SBSN Purchase and Sale Transaction in the Secondary Market
Article 242
(1) If fixed rate tender is conducted for outright SBSN purchase and sale transaction in the secondary market, the successful bidder will be determined by the following method:
a. bid’s nominal value submitted by a Sharia OMO Participant is won entirely; or b. if required, the nominal value bid submitted by a Sharia OMO Participant may be partially won in proportion according to the calculation of Bank Indonesia, with the smallest nominal SBSN rounding of Rp1,000,000.00 (one million rupiah). (2) If tender of outright SBSN purchase and sale transaction is conducted in variable rate tender method, Bank Indonesia will determine the accepted yield rate or Stop
Out Rate (SOR), or the accepted price, and the successful bidder will be determined as follows:
a. Tender of outright SBSN purchase transaction in the secondary market:
Article 243
Bank Indonesia may determine that there is no successful bidder in tender of outright SBSN purchase and sale transaction in the secondary market.
Section 4
Announcement of Tender Result of Outright SBSN Purchase and Sale Transaction in the Secondary Market
Article 244
Bank Indonesia will announce the tender result of outright sale and purchase transaction in the secondary market after it has conducted the successful bidder determination process, under the following provisions:
a. personally to the successful bidder through BI-ETP System and/or any other means, containing the won nominal value, transaction value, the won yield or price, the type and series of the won SBSN, and/or any other information; and b. entirely through Sistem BI-ETP System, LHBU System, and/or any other means, containing the nominal value of all incoming bids, nominal value of all won bid, Stop Out Rate (SOR), weighted average of yield rate, and/or any other information.
Section 5
Outright SBSN Purchase and Sale Transaction in the Secondary Market through Non-Tender Mechanism
Article 245
Outright purchase and sale transaction in the secondary market through non-tender mechanism is conducted bilaterally between Bank Indonesia and a Sharia OMO Participant directly or through an Intermediary Institution.
Section 6
Settlement of Outright SBSN Purchase and Sale Transaction through Tender and Non-Tender Mechanisms
Article 246
(1) Bank Indonesia will conduct the settlement of outright purchase and sale transaction in the secondary market no later than 2 (two) Business Days after the transaction date. (2) A Sharia OMO Participant must have the type and series of SBSN in its Securities Account adequate for the settlement of outright SBSN purchase transaction in the secondary market by Bank Indonesia. (3) A Sharia OMO Participant must have fund in its rupiah Checking Account adequate for the settlement of outright SBSN sale transaction in the secondary market by Bank Indonesia. (4) The settlement of outright SBSN purchase and sale transaction in the secondary market by Bank Indonesia is conducted through BI-RTGS System and BI-SSSS by gross to gross and DVP mechanisms. (5) Example of calculation of the settlement value of SBSN sale and purchase is specified in Appendix V, which constitutes an inseparable part hereof.
Article 247
(1) If, in an outright SBSN purchase transaction in the secondary market by Bank Indonesia, a Sharia OMO Participant does not have the type and series of SBSN in its Securities Account or, in an SBSN sale transaction, it does not have the fund in its rupiah Checking Account adequate for the settlement obligation of SBSN purchase and sale until before the cut-off warning period of BIRTGS System resulting in the settlement failure, BI-SSSS will automatically cancel the SBSN purchase and sale transaction. (2) If, in the same tender, there is more than 1 (one) cancellation of outright SBSB purchase and sale
transaction in the secondary market through tender mechanism, then to calculate the imposed temporary suspension from participating in SMO activities, the cancellation will be counted 1 (one) time. (3) If cancellation is made in an outright SBSN purchase and sale transaction in the secondary market through nontender mechanism, then to calculate the imposed temporary suspension from participating in SMO activities, the cancellation will be calculated for each canceled transaction.
Part Five
Sharia OMO Foreign Currency Term Deposit Transaction
Section 1
Registration and Information Update for Participation in Sharia OMO Foreign Currency Term Deposit Transaction Tender
Article 248
Sharia OMO Participants and Intermediary Institutions must register themselves and/or update their information prior to the implementation of Sharia OMO Foreign Currency Term Deposit Transaction tender.
Article 249
(1) A Sharia OMO Participant will submit a request letter for registration to participate in Sharia OMO Foreign Currency Term Deposit Transaction tender together with at least the following information:
a. name of Sharia OMO Participant; b. Bank Identifier Code (BIC) of Sharia OMO Participant;
c. 1 (one) Terminal Controller Identifier (TCID) if a Sharia
OMO Participant has a Terminal Controller Identifier (TCID); d. if a Sharia OMO Participant in the form of SBU, who does not have a Terminal Controller Identifier (TCID),
submits 1 (one) commercial bank’s Terminal Controller Identifier (TCID) of the SBU; e. if a Sharia OMO Participant has an account with a Correspondent Bank, the Sharia OMO Participant must submit:
a. name of the Intermediary Institution; b. 1 (one) Terminal Controller Identifier (TCID) of the Intermediary Institution;
c. name, electronic mail, and signature specimen of the
broker authorized to make Sharia OMO Foreign Currency Term Deposit Transaction; and d. name, electronic mail, and signature specimen of the supervisor of the broker authorized to make Sharia OMO Foreign Currency Term Deposit Transaction as set forth in letter c. (3) The registration request set forth in paragraph (1) and paragraph (2) must be signed by an official authorized to represent a Sharia OMO Participant or Intermediary Institution. (4) The request set forth in paragraph (3) must be delivered by letter to Bank Indonesia when the first Sharia OMO Foreign Currency Term Deposit Transaction will be made. (5) The registration request letter set forth in paragraph (4) must use the format as specified in Appendix XIII, which constitutes an inseparable part hereof. (6) The letter set forth in paragraph (4) must be submitted to the following address:
Bank Indonesia - Monetary Management Department Jl. M.H. Thamrin No. 2 Jakarta 10350 (7) If the correspondence address changes, Bank Indonesia will inform it by letter and/or through any other media.
Article 250
The registration request set forth in Article 249 may be submitted together with the submission of Monetary Operation participation permit as specified in the provisions of Bank Indonesia for participation in monetary operation.
Article 251
(1) If the information set forth in Article 249 paragraph (1) and paragraph (2) changes, any Sharia OMO Participant
and Intermediary Institution must submit information update by letter by using the format as specified in
Appendix XIII, which constitutes an inseparable part
hereof.
(2) The letter set forth in paragraph (1) must be delivered to Bank Indonesia at the address as specified in Article 249 paragraph (6).
Article 252
Bank Indonesia will grant approval for registration to participate in Sharia OMO Foreign Currency Term Deposit Transaction tender to a Sharia OMO Participant and Intermediary Institution by letter containing the following information:
a. name of the Sharia OMO Participant and/or Intermediary Institution; b. Bank Identifier Code (BIC) of the Sharia OMO Participant;
c. Terminal Controller Identifier (TCID) of the Sharia OMO
Participant and/or Intermediary Institution; d. code of an individual page consisting of active page, historical page, and confirmation page in tender automated system of foreign exchange Monetary Operation; e. Standard Settlement Instruction of the Sharia OMO Participant; f. effective date to participate in Sharia OMO Foreign Currency Term Deposit Transaction tender; and/or g. any other information.
Section 2
Announcement of Sharia OMO Foreign Currency Term Deposit Transaction Tender Plan
Article 253
(1) Bank Indonesia will announce Sharia OMO Foreign Currency Term Deposit Transaction tender plan and its changes at least before the window time through the
tender automated system of foreign exchange Monetary Operation, LHBU System, and/or any other means. (2) Announcement of Sharia OMO Foreign Currency Term Deposit Transaction tender contains the following information:
a. means of transaction; b. tender date;
c. auction name;
d. period; e. window time; f. yield rate; g. tender method; h. indicative target;
i. sanction percentage;
j. settlement date (value date); k. maturity date; and/or
l. any other information.
Section 3
Bid Submission for Sharia OMO Foreign Currency Term Deposit Transaction Tender
Article 254
Sharia OMO Participants and Intermediary Institutions must submit their bids for Sharia OMO Foreign Currency Term Deposit Transaction tender to Bank Indonesia through the means of dealing system and within the window time determined by Bank Indonesia according to the time recorded in the system of Bank Indonesia.
Article 255
(1) A submitted bid for Sharia OMO Foreign Currency Term Deposit Transaction must at least contain the following information:
a. auction name; b. bid’s nominal value; and
c. Terminal Controller Identifier (TCID) of a Sharia OMO
Participant if an Intermediary Institution submits a bid for and on behalf of the Sharia OMO Participant, for each term of Sharia OMO Foreign Currency Term Deposit Transaction. (2) The minimum submitted nominal value of the bid of each Sharia OMO Participant shall be USD5,000,000.00 (five million US dollar) and further at the multiple of USD1,000,000.00 (one million US dollar).
Article 256
(1) Any Sharia OMO Participant and Intermediary Institution may make correction to any bid submitted within the window time of a Sharia OMO Foreign Currency Term Deposit Transaction. (2) The correction set forth in paragraph (1) must be made under the following provisions:
a. Any Sharia OMO Participant may make correction to any bid information other than the auction name; and/or b. Any Intermediary Institution submitting its bid for Sharia OMO Foreign Currency Term Deposit Transaction tender for and on behalf of a Sharia OMO Participant may make correction to any bid information other than the Sharia OMO Participant's Terminal Controller Identifier (TCID) and auction name. (3) The bid correction must meet the requirements for bid submission set forth in Article 255.
Article 257
(1) Sharia OMO Participants and Intermediary Institutions must monitor the accuracy of data on bids for Sharia OMO Foreign Currency Term Deposit Transaction submitted to Bank Indonesia. (2) An Intermediary Institution must submit information to a Sharia OMO Participant on the submitted Sharia OMO
Foreign Currency Term Deposit Transaction for the Sharia OMO Participant's interest.
Section 4
Determination of Successful Bidder of Sharia OMO Foreign Currency Term Deposit Transaction
Article 258
(1) Bank Indonesia will determine the won nominal value of Sharia OMO Foreign Currency Term Deposit through the following:
a. nominal value submitted by a Sharia OMO Participant is won entirely; or b. if required, the nominal value submitted by a Sharia OMO Participant may be partially won in proportion according to the calculation of Bank Indonesia, with rounding to the closest hundred thousand US dollar under the following provisions:
Article 260
(1) Bank Indonesia will announce the tender result of Sharia OMO Foreign Currency Term Deposit Transaction after it has conducted the successful bidder determination process under the following provisions:
a. personally to the successful bidder through tender automated system of foreign exchange Monetary Operation and/or any other means, containing the following information:
(1) Bank Indonesia will settle the result of Sharia OMO Foreign Currency Term Deposit Transaction no later than 2 (two) business days after the transaction date. (2) A Sharia OMO Participant must provide fund in its checking account with a Correspondent Bank or intermediary bank appointed for settlement purposes, in an amount adequate for mandatory settlement of Sharia OMO Foreign Currency Term Deposit Transaction. (3) On a settlement date, a Sharia OMO Participant must transfer fund for settlement of Sharia OMO Foreign Currency Term Deposit Transaction for each bid or in the won nominal amount to the account of Bank Indonesia with a Correspondent Bank. (4) A Sharia OMO Participant will submit confirmation for settlement of the Sharia OMO Foreign Currency Term Deposit Transaction set forth in paragraph (3) through SWIFT message format MT320 or any other means to Bank Indonesia c.q. Department of Treasury and Loan Operation.
Article 262
(1) If a Sharia OMO Participant fails to perform the settlement obligation set forth in Article 261 paragraph (3), a Sharia OMO Foreign Currency Term Deposit Transaction will be declared failed. (2) If, in the same tender, there is more than 1 (one) settlement cancellation of Sharia OMO Foreign Currency Term Deposit as set forth in paragraph (1) on the same day, then to calculate the imposed temporary suspension from participating in SMO activities, the cancellation will be counted 1 (one) time.
Article 263
(1) On the maturity date of a Sharia OMO Foreign Currency Term Deposit Transaction, Bank Indonesia will settle the due Sharia OMO Foreign Currency Term Deposit Transaction by transferring to a Sharia OMO Participant’s
checking account with a Correspondent Bank in an amount equal to the cash value. (2) The cash value set forth in paragraph (1) is calculated by applying the following formula:
Note:
N = nominal amount of Sharia OMO Foreign Currency Term Deposit Transaction r = yield rate k = term of Sharia OMO foreign currency Term Deposit Transaction (3) If, after a Sharia OMO Foreign Currency Term Deposit transaction, the maturity date of such transaction is determined as a holiday by the government, the due settlement will be conducted on the following business day without calculating any additional interest for the holiday.
Section 7
Early Redemption of Sharia OMO Foreign Currency Term Deposit
Article 264
(1) A Sharia OMO Participant may propose an Early Redemption of Sharia OMO Foreign Currency Term Deposit 3 (three) days at the earliest after settlement of Sharia OMO Foreign Currency Term Deposit transaction tender, against which the Early Redemption will be made. (2) A Sharia OMO Participant may propose an Early Redemption on each business day, except on the tender day of Sharia OMO Foreign Currency Term Deposit transaction with a term longer than overnight. (3) The proposed Early Redemption set forth in paragraph (2) will be made from 08.00 West Indonesia Time until 11.00 West Indonesia Time.
(4) Early Redemption of a Sharia OMO Foreign Currency Term Deposit may be proposed through the means of dealing system determined by Bank Indonesia. (5) Early Redemption of a Sharia OMO Foreign Currency Term Deposit may be proposed for a minimum amount of USD1,000,000.00 (one million US dollar) at the multiple of USD1,000,000.00 (one million US dollar). (6) Early Redemption of Sharia OMO Foreign Currency Term Deposit Transaction will be proposed under the following provisions:
a. Sharia OMO Foreign Currency Term Deposit transacted through a tender automated system of foreign exchange Monetary Operation must be equipped with information on the reference number and auction name during the proposal for the Sharia OMO Foreign Currency Term Deposit transaction tender; or b. Sharia OMO Foreign Currency Term Deposit transacted manually as set forth in Article 277 paragraph (1) letter c must be equipped with information on the date and time of tender transaction against which an Early Redemption will be made (Greenwich Mean Time/GMT). (7) Early Redemption of Sharia OMO Foreign Currency Term Deposit, entirely or partially, will be conducted for a full nominal value specified on each deal ticket.
Article 265
(1) A Sharia OMO Participant making an Early Redemption of Sharia OMO Foreign Currency Term Deposit will obtain proportional interest with the following calculation:
Yield = Nominal Value of Early Redemption x Yield rate x k Note:
k = the term until settlement of an Early Redemption of Sharia OMO Foreign Currency
Term Deposit
(2) A Sharia OMO Participant will be imposed with a fee of an Early Redemption of Sharia OMO Foreign Currency Term Deposit amounting to 10% (ten percent) of the yield set forth in paragraph (1).
Article 266
(1) Bank Indonesia will settle an Early Redemption within 2 (two) business days after the Early Redemption proposal date. (2) The cash value of an Early Redemption is in the nominal amount of the corresponding Sharia OMO Foreign Currency Term Deposit plus interest less Early Redemption fee by applying the following formula:
Cash Value of Early
Redemption
= Nominal Value of
Foreign Currency
Term Deposit with
Early Redemption
Section 1
Foreign Exchange SBBI Issuance
Article 268
(1) In the event of abnormal condition of any means of dealing system affecting smooth implementation of Foreign Exchange SBBI tender, Bank Indonesia may conduct the following:
a. adjust the window time of Foreign Exchange SBBI tender; b. cancel the process of Foreign Exchange SBBI tender conducted through any means of dealing system; and/or
c. conduct Foreign Exchange SBBI tender manually.
(2) If the window time is adjusted as set forth in paragraph (1) letter a or the tender process is canceled as set forth in paragraph (1) letter b, Bank Indonesia will inform it to Conventional OMO Participants through the means of dealing system, LHBU System, and/or any other means. (3) If required, Bank Indonesia may conduct Foreign Exchange SBBI tender process manually as set forth in paragraph (1) letter c through the means of dealing system and/or any other means determined by Bank Indonesia. (4) If Bank Indonesia determines that more than 1 (one) means of transaction may be used as set forth in paragraph (3), a Conventional OMO Participant and/or Intermediary Institution may only submit its bid for Foreign Exchange SBBI tender through 1 (one) means of transaction determined by Bank Indonesia.
Article 269
Bank Indonesia will announce Foreign Exchange SBBI tender plan manually as set forth in Article 268 paragraph (3) under the following provisions:
a. Announcement must be made no later than the window time of Foreign Exchange SBBI tender manually through LHBU System and/or any other means. b. Window time of Foreign Exchange SBBI tender starts from 08.00 West Indonesia Time until 16.00 West Indonesia Time or any other time determined by Bank Indonesia.
c. Announcement of Foreign Exchange SBBI tender plan
contains the following information:
means of transaction;
tender day and date;
series;
window time;
period;
maturity date;
tender method;
indicative target, if it is a variable rate tender;
Foreign Exchange SBBI discount rate, if it is a fixed
rate tender;
settlement date (value date); and/or
any other information.
Article 270
Foreign Exchange SBBI tender bid may be submitted under the following provisions:
a. Conventional OMO Participants and Intermediary Institutions must submit their bids for Foreign Exchange SBBI tender through the means of dealing system and/or any other means determined by Bank Indonesia within the window time determined by Bank Indonesia according to the time recorded in the system of Bank Indonesia. b. Foreign Exchange SBBI bid submitted in fixed rate tender method must at least contain the following information:
name of Conventional OMO Participant;
bid’s nominal value;
discount rate as announced by Bank Indonesia;
BI-SSSS participant code referring to the provisions of
Bank Indonesia for implementation of securities administration through BI-SSSS as follows:
a) if a Conventional OMO Participant submits in its own name, the participant code used is the relevant Conventional OMO Participant's code; b) if a Conventional OMO Participant and/or Intermediary Institution submits in the name of another Conventional OMO Participant, the participant code used is the other Conventional OMO Participant's code; c) if a Conventional OMO Participant submits in the name of a Foreign Exchange SBBI buyer who does not have any Securities Account, the participant code used is the Sub-Registry's code.
c. Foreign Exchange SBBI bid submitted in variable rate
tender method must at least contain the following information:
name of Conventional OMO Participant;
nominal value bid;
discount rate;
BI-SSSS participant code referring to the provisions of
Bank Indonesia for implementation of securities administration through BI-SSSS as follows:
a) if a Conventional OMO Participant submits in its own name, the participant code used is the relevant Conventional OMO Participant's code; b) if a Conventional OMO Participant and/or Intermediary Institution submits in the name of another Conventional OMO Participant, the participant code used is the other Conventional OMO Participant's code; or c) if a Conventional OMO Participant submits in the name of a Foreign Exchange SBBI buyer who does not have any Securities Account, the participant code used is the Sub-Registry's code.
d. A bid may be submitted 2 (two) times at the maximum for each offered term. e. The minimum submitted nominal value of the bid of each OMO Participant shall be USD100,000.00 (one hundred thousand US dollar) and further at the multiple of USD1,000.00 (one thousand US dollar). f. Conventional OMO Participants and Intermediary Institutions may submit their bid in the maximum amount of USD100,000,000.00 (one hundred million US dollar) per submitted bid. g. If a Foreign Exchange SBBI tender is conducted in variable rate tender method, the submitted discount bid must be at the multiple of 0.1 bps (zero point one basis point) or 0.001% (zero point zero zero one percent).
Article 271
(1) Any OMO Participant and Intermediary Institution may make correction 1 (one) time to any bid submitted within the window time of a Foreign Exchange SBBI tender. (2) The correction set forth in paragraph (1) may be made to bid information other than the Conventional OMO Participant's name and term of Foreign Exchange SBBI. (3) The bid correction must meet the requirements for bid submission set forth in Article 270.
Article 272
(1) Conventional OMO Participants and Intermediary Institutions must monitor the accuracy of information on bids for Foreign Exchange SBBI tender submitted to Bank Indonesia. (2) An Intermediary Institution must submit information to a Conventional OMO Participant on the submitted Foreign Exchange SBBI tender for the Conventional OMO Participant’s interest. (3) If a bid and/or correction submitted by a Conventional OMO Participant and Intermediary Institution does not
meet the provisions set forth in Article 270 and Article 271, then the bid will be declared canceled. (4) A bid for Foreign Exchange SBBI tender by a Conventional OMO Participant or Intermediary Institution will be submitted by the party authorized to make transactions as set forth in Article 34 paragraph (1).
Article 273
(1) Determination of the successful bidder of Foreign Exchange SBBI tender will refer to the provisions set forth in Article 42. (2) Bank Indonesia will announce Foreign Exchange SBBI tender result after it has conducted the successful bidder determination process under the following provisions:
a. announce the determined successful bidder to all Conventional OMO Participants and Intermediary Institutions through LHBU System and/or any other means determined by Bank Indonesia, containing the following information:
If a bid is submitted through an Intermediary Institution, the confirmation set forth in Article 273 paragraph (2) letter b will be made under the following provisions:
a. if a Conventional OMO Participant does not have the means of dealing system determined by Bank Indonesia, confirmation must be made through an Intermediary Institution; or b. if a Conventional OMO Participant has the means of dealing system determined by Bank Indonesia, confirmation must be made to the Conventional OMO Participant.
Article 275
Settlement of Foreign Exchange SBBI tender in abnormal condition through the means of dealing system will be conducted by referring to the provisions set forth in Article 45 until Article 52.
Section 2
Conventional OMO Foreign Currency Term Deposit Transaction
Article 276
(1) In the event of abnormal condition in the tender automated system of foreign currency Monetary Operation affecting smooth implementation of Tender of Conventional OMO Term Deposit Transaction in Foreign Currency, Bank Indonesia may conduct the following:
a. adjust the window time of Conventional OMO Foreign Currency Term Deposit Transaction; b. cancel the process of Tender of Conventional OMO Term Deposit Transaction in Foreign Currency conducted through the tender automated system of foreign exchange Monetary Operation; and/or
c. conduct Conventional OMO Term Deposit Transactions
in Foreign Currency manually.
(2) If the window time is adjusted as set forth in paragraph (1) letter a or the tender process is canceled as set forth in paragraph (1) letter b, Bank Indonesia will inform it to Conventional OMO Participants through the tender automated system of foreign currency Monetary Operation, LHBU System, and/or any other means. (3) If required, Bank Indonesia may conduct Tender of Conventional OMO Term Deposit Transaction in Foreign Currency process manually as set forth in paragraph (1) letter c through the means of dealing system and/or any other means determined by Bank Indonesia. (4) If Bank Indonesia determines that more than 1 (one) means of transaction may be used as set forth in paragraph (3), a Conventional OMO Participant and/or Intermediary Institution may only submit its bid for Tender of Conventional OMO Term Deposit Transaction in Foreign Currency through 1 (one) means of transaction determined by Bank Indonesia.
Article 277
Bank Indonesia will announce Tender plan of Conventional OMO Term Deposit Transaction in Foreign Currency manually as set forth in Article 276 paragraph (3) under the following provisions:
a. Announcement must be made no later than the window time of Tender of Conventional OMO Term Deposit Transaction in Foreign Currency manually through LHBU System and/or any other means. b. Window time of Tender of Conventional OMO Term Deposit Transaction in Foreign Currency starts from
08.00 West Indonesia Time until 16.00 West Indonesia
Time or any other time determined by Bank Indonesia.
c. Announcement of Conventional OMO Term Deposit
Transaction tender contains the following information:
means of transaction;
tender date;
period;
window time;
tender method;
discount rate, if fixed rate tender is applied for
Conventional OMO Foreign Currency Term Deposit transaction;
indicative target, if variable rate tender is applied for
Conventional OMO Foreign Currency Term Deposit transaction;
settlement date (value date);
maturity date; and/or
any other information.
Article 278
Tender of Conventional OMO Foreign Currency Term Deposit Transaction is conducted under the following provisions:
a. Conventional OMO Participants and Intermediary Institutions must submit their bids for Tender of Conventional OMO Term Deposit Transaction in Foreign Currency to Bank Indonesia through the means of dealing system and within the window time determined by Bank Indonesia according to the time recorded in the system of Bank Indonesia. b. Any bids submitted for fixed rate tender of Conventional OMO Foreign Currency Term Deposit transaction must contain the following information:
name of Conventional OMO Participant;
transaction date;
period;
maturity date;
Standard Settlement Instruction;
bid’s nominal value;
discount rate as announced by Bank Indonesia;
and/or
any other information.
c. Any bids submitted for variable rate tender of
Conventional OMO Foreign Currency Term Deposit transaction must contain the following information:
name of Conventional OMO Participant;
transaction date;
period;
maturity date;
Standard Settlement Instruction;
bid’s nominal value;
discount rate; and/or
any other information determined by Bank Indonesia.
d. A bid may be submitted 2 (two) times at the maximum for each offered term. e. The minimum submitted nominal value of the bid of each Conventional OMO Participant shall be USD5,000,000.00 (five million US dollar) and further at the multiple of USD1,000,000.00 (one million US dollar). f. If variable rate tender is applied in Conventional OMO Foreign Currency Term Deposit transaction, any bid for interest rate will be made at the multiple of 1 (one) bps (basis point) or 0.01% (zero point zero one percent).
Article 279
(1) Any Conventional OMO Participant and Intermediary Institution may make correction to any bid submitted within the window time of a Conventional OMO Foreign Currency Term Deposit transaction. (2) The correction set forth in paragraph (1) may be made to bid information other than the Conventional OMO Transaction's name and term of Conventional OMO Foreign Currency Term Deposit Transaction. (3) The bid correction must meet the requirements for bid submission set forth in Article 278.
Article 280
(1) Conventional OMO Participants and Intermediary Institutions must monitor the accuracy of data on bids for Conventional OMO Foreign Currency Term Deposit transaction submitted to Bank Indonesia.
(2) An Intermediary Institution must submit information to a Conventional OMO Participant on the submitted Conventional OMO Foreign Currency Term Deposit transaction for the Conventional OMO Participant's interest. (3) If a bid and/or correction submitted by a Conventional OMO Participant and Intermediary Institution does not meet the provisions set forth in Article 278 and Article 279, the bid will be declared canceled.
Article 281
Determination of the successful bidder of Conventional OMO Foreign Currency Term Deposit Transaction is set forth in
Article 131.
Article 282
Bank Indonesia will announce the tender result of Conventional OMO Foreign Currency Term Deposit transaction after it has conducted the successful bidder determination process under the following provisions:
a. announce all the result of successful bidder determination through LHBU System and/or any other means determined by Bank Indonesia containing the following information:
and/or any other means determined by Bank Indonesia containing the following information:
Article 285
(1) In the event of abnormal condition in the tender automated system of foreign currency Monetary Operation affecting smooth implementation of Sharia OMO Foreign Currency Term Deposit Transaction tender, Bank Indonesia may conduct the following:
a. adjust the window time of Sharia OMO Foreign Currency Term Deposit Transaction; b. cancel the process of Sharia OMO Foreign Currency Term Deposit Transaction tender conducted through tender automated system of foreign exchange Monetary Operation; and/or
c. conduct Sharia OMO Foreign Currency Term Deposit
Transactions manually.
(2) If the window time is adjusted as set forth in paragraph (1) letter a or the tender process is canceled as set forth in paragraph (1) letter b, Bank Indonesia will inform it to Sharia OMO Participants through the tender automated system of foreign exchange Monetary Operation, LHBU System, and/or any other means. (3) If required, Bank Indonesia may conduct Sharia OMO Foreign Currency Term Deposit Transaction tender process manually as set forth in paragraph (1) letter c through the means of dealing system and/or any other means determined by Bank Indonesia. (4) If Bank Indonesia determines that more than 1 (one) means of transaction may be used as set forth in paragraph (3), a Sharia OMO Participant and/or Intermediary Institution may only submit its bid for Sharia OMO Foreign Currency Term Deposit Transaction tender through 1 (one) means of transaction determined by Bank Indonesia.
Article 286
Bank Indonesia will announce Sharia OMO Foreign Currency Term Deposit Transaction tender plan manually as set forth in
Article 285 paragraph (3) under the following provisions:
a. Announcement must be made no later than the window time of Sharia OMO Foreign Currency Term Deposit Transaction tender manually through LHBU System and/or any other means. b. Window time of Sharia OMO Foreign Currency Term Deposit Transaction tender starts from 08.00 West Indonesia Time until 16.00 West Indonesia Time or any other time determined by Bank Indonesia.
c. Announcement of Sharia OMO Foreign Currency Term
Deposit Transaction tender contains the following information:
means of transaction;
tender date;
period;
window time;
tender method;
indicative target;
sanction percentage;
settlement date (value date);
maturity date; and/or
any other information.
Article 287
Sharia OMO Foreign Currency Term Deposit Transaction tender is conducted under the following provisions:
a. Sharia OMO Participants and Intermediary Institutions must submit their bids for Sharia OMO Foreign Currency Term Deposit Transaction tender to Bank Indonesia through the means of dealing system and within the window time determined by Bank Indonesia according to the time recorded in the system of Bank Indonesia. b. Announcement of Sharia OMO Foreign Currency Term Deposit Transaction tender contains the following information:
name of Sharia OMO Participant;
transaction date;
period;
maturity date;
Standard Settlement Instruction;
bid’s nominal value;
yield rate as announced by Bank Indonesia; and/or
any other information.
c. A bid may be submitted 2 (two) times at the maximum for
each offered term. d. The minimum submitted nominal value of the bid of each Sharia OMO Participant shall be USD5,000,000.00 (five million US dollar) and further at the multiple of USD1,000,000.00 (one million US dollar).
Article 288
(1) Any Sharia OMO Participant and Intermediary Institution may make correction to any bid submitted within the window time of a Sharia OMO Foreign Currency Term Deposit Transaction. (2) The correction set forth in paragraph (1) may be made to bid information other than the Sharia OMO Participant's name and term of Sharia OMO Foreign Currency Term Deposit Transaction. (3) The bid correction must meet the requirements for bid submission set forth in Article 287.
Article 289
(1) Sharia OMO Participants and Intermediary Institutions must monitor the accuracy of data on bids for Sharia OMO Foreign Currency Term Deposit Transaction submitted to Bank Indonesia. (2) An Intermediary Institution must submit information to a Sharia OMO Participant on the submitted Sharia OMO Foreign Currency Term Deposit Transaction for the Sharia OMO Participant's interest.
(3) If a bid and/or correction submitted by a Sharia OMO Participant and Intermediary Institution does not meet the provisions set forth in Article 287 and Article 288, then the bid will be declared canceled.
Article 290
Determination of the successful bidder of Sharia OMO Foreign Currency Term Deposit Transaction is set forth in Article 258.
Article 291
Bank Indonesia will announce the tender result of Sharia OMO Foreign Currency Term Deposit Transaction after it has conducted the successful bidder determination process under the following provisions:
a. announce all the result of successful bidder determination through LHBU System and/or any other means determined by Bank Indonesia containing the following information:
If a bid is submitted through an Intermediary Institution, the confirmation set forth in Article 291 letter b will be made under the following provisions:
a. if a Sharia OMO Participant does not have the means of dealing system determined by Bank Indonesia, confirmation must be made through an Intermediary Institution; or b. if a Sharia OMO Participant has the means of dealing system determined by Bank Indonesia, confirmation must be made to the Sharia OMO Participant.
Article 293
(1) Fund transfer to perform the mandatory settlement of Sharia OMO Foreign Currency Term Deposit Transaction is conducted in the nominal value specified in each deal ticket of the said transaction tender. (2) In abnormal condition of tender automated system of foreign currency Monetary Operation, settlement of Sharia OMO Foreign Currency Term Deposit Transaction will be conducted under the provisions specified in Article 261, Article 262, and Article 263.
Section 4
Implementation of Swap Transaction through Tender
Article 294
(1) In the event of abnormal condition in the tender automated system of foreign currency Monetary Operation affecting smooth implementation of Swap Transaction tender, Bank Indonesia may conduct the following:
a. adjust the window time of Swap Transaction through tender; b. cancel the process of Swap Transaction tender conducted through the automated system of foreign exchange Monetary Operation tender; and/or
c. conduct Swap Transaction through tender manually.
(2) If the window time is adjusted as set forth in paragraph (1) letter a or the tender process is canceled as set forth in paragraph (1) letter b, Bank Indonesia will inform it to Sharia OMO Participants through the tender automated system of foreign currency Monetary Operation, LHBU System, and/or any other means. (3) If required, Bank Indonesia may conduct Swap Transaction tender process manually as set forth in paragraph (1) letter c through the means of dealing system and/or any other means determined by Bank Indonesia. (4) If Bank Indonesia determines that more than 1 (one) means of transaction may be used as set forth in paragraph (3), a Conventional OMO Participant and/or Intermediary Institution may only submit its bid for Swap Transaction tender through 1 (one) means of transaction determined by Bank Indonesia.
Article 295
Bank Indonesia will announce Swap Transaction tender plan manually as set forth in Article 294 paragraph (3) under the following provisions:
a. Announcement must be made no later than the window time of Swap Transaction tender manually through LHBU System and/or any other means. b. Window time of Swap Transaction tender starts from
08.00 West Indonesia Time until 16.00 West Indonesia
Time or any other time determined by Bank Indonesia.
c. If the window time set forth in letter b is opened before
JISDOR issuance, the spot rate used is JISDOR on the previous business day. d. If the window time set forth in letter b is opened after JISDOR issuance, the spot rate used is JISDOR on the transaction day. e. Announcement of Swap Transaction tender plan contains the following information:
type of Swap Transaction;
means of transaction;
tender date;
period;
window time;
tender method;
swap premium, if the Swap Transaction is conducted
in fixed rate tender method;
indicative target, if the Swap Transaction is conducted
in variable rate tender method;
currency;
spot rate;
settlement date (value date);
maturity date; and/or
any other information.
Article 296
Swap transaction tender bid may be submitted under the following provisions:
a. Conventional OMO Participants and Intermediary Institutions must submit their bids to Bank Indonesia through the means of dealing system and/or any other means determined by Bank Indonesia within the window time determined by Bank Indonesia according to the time recorded in the system of Bank Indonesia. b. A submitted Swap Transaction bid for tender in fixed rate tender method contains the following information:
name of Conventional OMO Participant;
transaction date;
period;
maturity date;
bid’s nominal value;
currency;
Standard Settlement Instruction; and/or
any other information.
c. A submitted Swap Transaction bid for tender in variable
rate tender method contains the following information:
name of Conventional OMO Participant;
transaction date;
period;
maturity date;
nominal value bid;
currency;
swap premium;
Standard Settlement Instruction; and/or
any other information.
d. A bid may be submitted 2 (two) times at the maximum for each offered term. e. The minimum submitted nominal value of the bid of each Conventional OMO Participant shall be USD5,000,000.00 (five million US dollar) and further at the multiple of USD1,000,000.00 (one million US dollar). f. If a Swap Transaction is conducted in variable rate tender method, the minimum submitted swap premium bid of Conventional OMO Participants and Intermediary Institutions must be Rp1.00 (one rupiah) and further at the multiple of Rp1.00 (one rupiah).
Article 297
(1) Any Conventional OMO Participant and Intermediary Institution may make correction 1 (one) time to any bid submitted within the window time of a Swap Transaction through tender. (2) The correction set forth in paragraph (1) may be made to bid information other than the Conventional OMO Participant's name and Swap Transaction term. (3) The bid correction must meet the requirements for bid submission set forth in Article 296.
Article 298
(1) Conventional OMO Participants and Intermediary Institutions must monitor the accuracy of information on bids for Swap Transaction through tender submitted to Bank Indonesia.
(2) An Intermediary Institution must submit information to a Conventional OMO Participant on the submitted Swap Transaction tender for the Conventional OMO Participant’s interest. (3) If a bid and/or correction submitted by a Conventional OMO Participant and Intermediary Institution does not meet the provisions set forth in Article 296 and Article 297, the bid will be declared canceled. (4) A bid for Swap Transaction tender by a Conventional OMO Participant or Intermediary Institution will be submitted by the party authorized to make transactions as set forth in Article 148 paragraph (1) letter g or Article 148 paragraph (2) letter c.
Article 299
(1) Determination of the successful bidder of Swap Transaction tender will refer to the provisions set forth in
Article 157.
(2) Bank Indonesia will announce Swap Transaction tender result after it has conducted the successful bidder determination process under the following provisions:
a. announce the determined successful bidder to all Conventional OMO Participants and Intermediary Institutions through LHBU System and/or any other means determined by Bank Indonesia, containing the following information:
the won Swap Transaction nominal value;
swap premium per term, if the Swap Transaction
is conducted in fixed rate tender method;
weighted average of swap premium per term, if a
Swap Transaction is conducted in variable rate tender method; and/or
any other information;
b. confirm personally to the Conventional OMO Participant winning the tender through the means of dealing system and/or any other means determined by Bank Indonesia containing the following information:
the won Swap Transaction nominal value;
the won swap premium;
spot rate;
transaction period;
settlement date (value date);
maturity date;
request for Standard Settlement Instruction from
an OMO Participant;
request for rupiah Checking Account number of
an OMO Participant; and/or
any other information.
Article 300
If a bid is submitted through an Intermediary Institution, the confirmation set forth in Article 299 paragraph (2) letter b will be made under the following provisions:
a. if a Conventional OMO Participant does not have the means of dealing system determined by Bank Indonesia, confirmation must be made through an Intermediary Institution; or b. if a Conventional OMO Participant has the means of dealing system determined by Bank Indonesia, confirmation must be made to the Conventional OMO Participant.
Article 301
An OMO Participant winning a bid may not conduct an early termination of Swap Transaction through tender.
Article 302
In abnormal condition of tender automated system of foreign currency Monetary Operation, settlement of Swap Transaction will be conducted under the provisions specified in Article 161 until Article 169.
CHAPTER V
PROCEDURE FOR OMO SANCTION IMPOSITION
Part One
Conventional OMO Sanctions
Section 1
Sanctions for Conventional OMO Transactions in Rupiah
Article 303
(1) A Conventional OMO Participant may be imposed with the following sanctions if it fails to perform mandatory settlement of Rupiah OMO transactions:
a. SBI issuance transaction set forth in Article 12 paragraph (1). b. SDBI issuance transaction set forth in Article 26 paragraph (1).
c. Conventional OMO Repo Transaction set forth in
Article 68 paragraph (1), Article 72 paragraph (1),
Article 77, and Article 82 paragraph (1).
d. Conventional OMO Reverse Repo Transaction set forth in Article 92 paragraph (1) and Article 96 paragraph (1). e. Outright SBN purchase and sale transaction in the secondary market by Bank Indonesia set forth in
Article 108 paragraph (1).
f. Conventional OMO Rupiah Term Deposit Transaction set forth in Article 117 paragraph (1). (2) The sanctions set forth in paragraph (1) include:
a. written reprimand, the copy of which is delivered to the Financial Services Authority (OJK); and b. payment obligation of 0.01% (zero point zero one percent) of an OMO transaction value declared canceled, of Rp10,000,000.00 (ten million rupiah) at the minimum and Rp100,000,000.00 (one hundred million rupiah) at the maximum.
Article 304
The written reprimand set forth in Article 303 paragraph (2) will be submitted within 1 (one) Business Day after the transaction cancellation.
Article 305
(1) If a transaction has the second leg, the canceled transaction value set forth in Article 303 paragraph (2) will be the transaction value in the first leg. (2) The payment obligation set forth in Article 303 paragraph (2) will be imposed by debiting an OMO Participant’s rupiah Checking Account within 1 (one) Business Day after the transaction cancellation.
Section 2
Sanctions for Foreign Currency Conventional OMO Transactions other than Foreign Exchange SBBI and Conventional OMO Term Deposit Transactions in Foreign Currency
Article 306
(1) A Conventional OMO Participant may be imposed with the following sanctions if it fails to perform mandatory settlement of foreign currency Conventional OMO Transactions:
a. Spot transaction set forth in Article 145 letter c and
Article 146 letter c.
b. Swap transaction set forth in Article 162, Article 164 paragraph (1), Article 166 paragraph (1), and Article 168.
c. Forward transaction set forth in Article 181 paragraph
(1) and Article 183.
(2) The sanctions set forth in paragraph (1) includes:
a. written reprimand, the copy of which is delivered to the Financial Services Authority (OJK); and b. payment obligation calculated based on
(two hundred) basis points multiplied by the transaction value and multiplied by 1/360 for payment obligation settlement in United States dollar;
2. the average official rate issued by the central bank
or the monetary authority effective on the transaction settlement date plus margin of 200 (two hundred) basis points multiplied by the transaction value and multiplied by 1/360 for payment obligation settlement in foreign currencies other than United States dollar; or
3. the effective average Bank Indonesia 7-Day
(Reverse) Repo rate plus margin of 350 (three hundred fifty) basis points multiplied by the transaction value and multiplied by 1/360 for payment obligation settlement in rupiah.
Article 307
The written reprimand set forth in Article 306 paragraph (2) is delivered within 2 (two) Business Days at the maximum after a settlement date.
Article 308
The payment obligation set forth in Article 306 paragraph (2) will be imposed by debiting the rupiah Checking Account or foreign currency Checking Account of an OMO Participant with Bank Indonesia within 2 (two) Business Days at the maximum after a settlement date.
Section 3
Sanctions for Foreign Exchange SBBI and Conventional OMO Term Deposit Transactions in Foreign Currency
Article 309
(1) An OMO Participant may be imposed with the following sanctions if it fails to meet the mandatory settlement of Foreign Exchange SBBI transaction set forth in Article 51
paragraph (1) and Conventional OMO Foreign Currency Term Deposit transaction set forth in Article 135 paragraph (1):
a. written reprimand, the copy of which is delivered to the Financial Services Authority (OJK); and b. payment obligation calculated based on the Fed Fund rate effective on a transaction settlement date plus margin of 200 (two hundred) basis points multiplied by transaction value multiplied by 1/360. (2) If an OMO Participant fails to discharge its obligation on the second leg settlement date of Bank Indonesia Sale Swap Transaction set forth in Article 142 paragraph (3) letter c, then the OMO Participant will be imposed with the following sanctions:
a. written reprimand, the copy of which is delivered to the Financial Services Authority (OJK); and b. payment obligation calculated based on the effective average Bank Indonesia 7-Day (Reverse) Repo rate plus margin of 350 (three hundred fifty) basis points multiplied by the transaction value multiplied by 1/360.
Article 310
The written reprimand set forth in Article 309 paragraph (1) and paragraph (2) is delivered no later than 2 (two) Business Days after cancellation of Foreign Exchange SBBI transaction or Conventional OMO Foreign Currency Term Deposit transaction, or unfulfilled obligation set forth in Article 142 paragraph (3) letter c.
Article 311
(1) The payment obligation sanction set forth in Article 309 paragraph (1) will be imposed by debiting the foreign currency Checking Account of an OMO Participant with Bank Indonesia within 2 (two) Business Days at the maximum after the transaction cancellation.
(2) The payment obligation sanction set forth in Article 309 paragraph (2) will be imposed by debiting an OMO Participant’s rupiah Checking Account with Bank Indonesia within 2 (two) Business Days at the maximum after the settlement obligation date.
Section 4
Temporary Suspension from Participating in CMO
Article 312
For the third canceled CMO transactions, consisting of Conventional OMO transactions and/or Conventional Standing Facilities transactions, within 6 (six) months, in addition to the sanctions set forth in Article 303 paragraph (2),
Article 306 paragraph (2), and Article 309, an OMO Participant
may also be imposed with temporary suspension from participating in CMO activities for 5 (five) consecutive Business Days.
Article 313
The temporary suspension from participating in CMO activities set forth in Article 312 is enforced starting from 1 (one) Business Day upon obtaining information on CMO transaction cancellation for the third time.
Article 314
(1) If there are 3 (three) times CMO transaction cancellation within 1 (one) day, the temporary suspension set forth in
Article 312 may count the 3 (three) times cancellation.
(2) Example of sanction imposition due to CMO transaction cancellation is specified in Appendix XIV, which constitutes an inseparable part hereof.
Article 315
Restriction and/or prohibition from CMO participation may also be imposed on any Conventional OMO Participant failing to perform its obligation specified in the provisions of Bank
Indonesia for monetary regulation and supervision and/or the provisions of Bank Indonesia for macroprudential regulation and supervision.
Section 5
Sanctions for Breach of SBI Minimum Holding Period Obligation
Article 316
Any Bank and/or Sub-Registry failing to perform the obligations set forth in Article 14 will be imposed with the following sanctions:
a. written reprimand, the copy of which is delivered to the Financial Services Authority; and b. payment obligation of 0.01% (zero point zero one percent) of the incompliant SBI transaction value, in the minimum amount of Rp10,000,000.00 (ten million rupiah) and in the maximum amount of Rp100,000,000.00 (one hundred million rupiah) per day.
Article 317
The written reprimand set forth in Article 316 will be delivered after the response delivery time limit set forth in Article 17 paragraph (3) has passed.
Article 318
The payment obligation set forth in Article 316 will be imposed by debiting the rupiah Checking Account and/or checking account of a paying bank appointed by the Sub-Registry.
Section 6
Sanctions for Breach of SDBI Transactions between Banks and Parties Other than Banks in the Secondary Market
Article 319
Any commercial bank failing to meet the provisions set forth in
Article 28 and any Sub-Registry failing to meet the provisions
set forth in Article 30 will be imposed with the following sanctions:
a. written reprimand, the copy of which is delivered to the Financial Services Authority (OJK); and b. payment obligation of 0.01% (zero point zero one percent) of the incompliant SDBI transaction value, in the minimum amount of Rp10,000,000.00 (ten million rupiah) and in the maximum amount of Rp100,000,000.00 (one hundred million rupiah) per day.
Article 320
The written reprimand set forth in Article 319 will be delivered within 1 (one) Business Day upon acknowledgment of the breach set forth in Article 28 and Article 30.
Article 321
The payment obligation sanction set forth in Article 319 will be imposed by debiting the rupiah Checking Account and/or checking account of a paying bank appointed by the SubRegistry.
Part Two
Sharia OMO Sanctions
Section 1
Sanctions for Rupiah Sharia OMO Transactions
Article 322
(1) A Sharia OMO Participant may be imposed with the following sanctions if it fails to perform mandatory settlement of rupiah OMO transactions:
a. SBIS issuance transaction set forth in Article 195 paragraph (1); b. Sharia OMO Repo Transaction set forth in Article 210 paragraph (1) and Article 214 paragraph (1);
c. Sharia OMO Reverse Repo Transaction set forth in
Article 231 paragraph (1) and Article 235 paragraph
(1); d. Outright SBSN purchase and sale transaction in the secondary market by Bank Indonesia set forth in
Article 247 paragraph (1).
(2) The sanctions set forth in paragraph (1) include:
a. written reprimand, the copy of which is delivered to the Financial Services Authority (OJK); and b. payment obligation of 0.01% (zero point zero one percent) of the canceled SBIS transaction value, in the minimum amount of Rp10,000,000.00 (ten million rupiah) and in the maximum amount of Rp100,000,000.00 (one hundred million rupiah) for each cancellation. (3) In the event of cancellation of Sharia OMO Repo Transactions set forth in Article 214 paragraph (1) and if securities price in the second leg transaction is lower than the first leg transaction, in addition to the sanctions set forth in paragraph (2), a Sharia OMO Participant will be imposed with an additional sanction in the form of payment obligation amounting to the difference between the price in the first leg transaction and that in the second leg after being multiplied by the nominal amount of repurchased securities. (4) In the event of cancellation of Sharia OMO Reverse Repo Transactions set forth in Article 235 paragraph (1) and if securities price in the second leg transaction is higher than the first leg transaction, in addition to the sanctions set forth in paragraph (2), a Sharia OMO Participant will be imposed with an additional sanction in the form of payment obligation amounting to the difference between the price in the second leg transaction and that in the first leg after being multiplied by the nominal amount of reverse repurchased securities.
Article 323
The written reprimand set forth in Article 322 paragraph (2) is delivered within 1 (one) Business Day after the transaction cancellation.
Article 324
(1) The payment obligation set forth in Article 322 paragraph (2) will be imposed by debiting an OMO Sharia Participant’s rupiah Checking Account within 1 (one) Business Day after the transaction cancellation. (2) Example of the sanction imposition set forth in paragraph (1) is specified in Appendix XIV, which constitutes an inseparable part hereof.
Section 2
Sanctions for Sharia OMO Foreign Currency Term Deposit Transactions
Article 325
If a Sharia OMO Participant fails to perform the settlement obligation resulting in cancellation of Sharia OMO Foreign Currency Term Deposit Transaction set forth in Article 262 paragraph (1), the Sharia OMO Participant will be imposed with the following sanctions:
a. written reprimand, the copy of which is delivered to the Financial Services Authority (OJK); and b. payment obligation amounting to a certain percentage of a canceled transaction, which is announced by Bank Indonesia during the transaction plan announcement set forth in Article 253 paragraph (2) with the following formula:
Payment
Obligation
= Sanction percentage x Transaction nominal amount
Article 326
The written reprimand set forth in Article 325 will be delivered within 2 (two) Business Days after the transaction cancellation set forth in Article 262 paragraph (1).
Article 327
The payment obligation set forth in Article 325 will be imposed by debiting a Sharia OMO Participant’s foreign currency Checking Account with Bank Indonesia within 2 (two) Business Days at the maximum after the transaction cancellation.
Section 3
Temporary Suspension from Participating in SMO
Article 328
For the third canceled SMO transactions, consisting of Sharia OMO transactions and/or Sharia Standing Facilities transactions, within 6 (six) months, in addition to the sanctions set forth in Article 322 paragraph (2) and Article 325, a Sharia OMO Participant may also be imposed with temporary suspension from participating in SMO activities for 5 (five) consecutive Business Days.
Article 329
The temporary suspension from participating in SMO activities set forth in Article 328 is enforced starting from 1 (one) Business Day upon obtaining information on SMO transaction cancellation for the third time.
Article 330
(1) If there are 3 (three) times SMO transaction cancellation within 1 (one) day, the temporary suspension set forth in
Article 329 will only count the 3 (three) times
cancellation.
(2) Example of sanction imposition due to SMO transaction cancellation is specified in Appendix XIV, which constitutes an inseparable part hereof.
Article 331
Restriction and/or prohibition from SMO participation may also be imposed on any Sharia OMO Participant failing to meet its obligation specified in the provisions of Bank Indonesia for monetary regulation and supervision and/or the provisions of Bank Indonesia for macroprudential regulation and supervision.
CHAPTER VI
CLOSING PROVISIONS
Article 332
On the enforcement of this Bank Indonesia Regulation:
a. Circular of Bank Indonesia No. 17/40/DPM on the Procedure for Sharia Sovereign Securities Repurchase Agreement Transactions with Bank Indonesia for Sharia Open Market Operation; b. Circular of Bank Indonesia No. 17/41/DPM on the Procedure for Sharia Sovereign Securities Reverse Repurchase Agreement Transactions with Bank Indonesia for Sharia Open Market Operation;
c. Circular of Bank Indonesia No. 17/44/DPM on the
Procedure for Sharia Bank Indonesia Certificate Issuance through Tender for Sharia Open Market Operation; d. Circular of Bank Indonesia No. 17/46/DPM on the Procedure for Outright Purchase and Sale of Sharia Sovereign Securities from Bank Indonesia for Sharia Open Market Operation; e. Circular of Bank Indonesia No. 18/24/DPM on Open Market Operation; f. Circular of Bank Indonesia No. 18/31/DPM on Procedure for Foreign Currency Sharia Term Deposit; and g. Circular of Bank Indonesia No. 17/48/DPD on Issuance, Tender Procedure, and Administration of Foreign Currency Bank Indonesia Securities, are repealed and declared null and void.
Article 333
This Regulation starts to take effect as from its issuance date. For public recognition, it is hereby ordered this Regulation be promulgated in the Official Gazette of the Republic of Indonesia. Established in Jakarta on MEMBER OF BOARD OF GOVERNORS, ERWIN RIJANTO
ELUCIDATION
ON
REGULATION OF MEMBERS OF BOARD OF GOVERNORS NUMBER 20/6/PADG/2018 ON IMPLEMENTATION OF OPEN MARKET OPERATION
I. GENERAL
In Article 7 of Law Number 23 of 1999 on Bank Indonesia as last amended by Law Number 6 of 2009 on Establishment of Government Regulation in Lieu of Law Number 2 of 2008 on the Second Amendment to Law Number 23 of 1999 on Bank Indonesia as a Law, it is evidently specified that the objective of Bank Indonesia is to achieve and maintain rupiah stability. To reach the objective and face macroeconomic challenges, Bank Indonesia conducts monetary control through implementation of monetary operation in a conventional manner or adhering to sharia principles. Monetary operation is conducted among others through implementation of open market operation.
II. ARTICLE BY ARTICLE
Article 1
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Article 2
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Article 3
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Article 4
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Article 5
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Article 6
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Article 7
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Article 8
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Article 9
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Article 10
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Article 11
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Article 12
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Article 13
Self-explanatory
Article 14
SBI Transaction includes repurchase agreement (repo) transactions, (outright) sale or purchase transactions, grant giving or receiving, and collateral extension or receipt.
SBI repurchase agreement (repo) transactions under sell and buy back principle may not be made within less than 1 (one) week or 7 (seven) calendar days. If an SBI transaction has the second leg and ownership transfer does not occur, such as repurchase agreement (repo) under collateralized borrowing principle, (pledge), and securities lending and borrowing, an SBI owner may immediately transact the SBI after its maturity (second leg). If an SBI transaction has the second leg and ownership transfer occurs, such as repo sell and buyback of SBI, an SBI owner may retransact the SBI under the following conditions:
a. if the second leg of repo transaction is successful, the SBI may be retransacted by a repo seller 1 (one) week or 7 (seven) calendar days as from the second leg settlement of the SBI transaction; or b. if the second leg of repo transaction is unsuccessful, the SBI may be retransacted by a repo purchaser 1 (one) week or 7 (seven) calendar days as from the first leg settlement of the SBI transaction. If SBI transfer between Sub-Registry without ownership transfer or SBI transfer owing to merger, take over, acquisition, and amalgamation, SBI may be retransacted 1 (one) week or 7 (seven) calendar days as from the SBI is registered in the initial Sub-Registry or the initial Securities Account.
Article 15
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Article 16
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Article 17
Paragraph (1)
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Paragraph (2)
Self-explanatory
Paragraph (3)
“Business day” means business days starting from Monday through Friday, except national holidays and/or special holidays determined by the government. Paragraph (4) Self-explanatory
Article 18
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Article 19
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Article 20
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Article 21
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Article 22
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Article 23
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Article 24
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Article 25
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Article 26
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Article 27
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Article 28
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Article 29
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Article 30
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Article 31
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Article 32
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Article 33
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Article 34
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Article 35
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Article 36
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Article 37
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Article 38
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Article 39
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Article 40
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Article 41
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Article 42
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Article 43
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Article 44
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Article 45
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Article 46
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Article 47
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Article 48
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Article 49
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Article 50
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Article 51
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Article 52
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Article 53
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Article 54
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Article 55
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Article 56
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Article 57
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Article 58
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Article 59
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Article 60
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Article 61
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Article 62
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Article 63
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Article 64
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Article 65
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Article 66
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Article 67
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Article 68
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Article 69
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Article 70
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Article 71
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Article 72
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Article 73
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Article 74
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Article 75
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Article 76
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Article 77
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Article 78
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Article 79
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Article 80
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Article 81
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Article 82
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Article 83
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Article 84
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Article 85
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Article 86
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Article 87
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Article 88
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Article 89
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Article 90
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Article 91
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Article 92
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Article 93
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Article 94
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Article 95
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Article 96
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Article 97
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Article 98
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Article 99
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Article 100
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Article 101
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Article 102
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Article 103
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Article 104
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Article 105
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Article 106
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Article 107
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Article 108
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Article 109
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Article 110
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Article 111
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Article 112
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Article 113
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Article 114
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Article 115
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Article 116
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Article 117
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Article 118
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Article 119
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Article 120
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Article 121
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Article 122
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Article 123
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Article 124
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Article 125
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Article 126
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Article 127
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Article 128
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Article 129
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Article 130
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Article 131
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Article 132
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Article 133
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Article 134
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Article 135
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Article 136
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Article 137
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Article 138
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Article 139
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Article 140
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Article 141
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Article 142
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Article 143
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Article 144
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Article 145
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Article 146
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Article 147
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Article 148
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Article 149
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Article 150
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Article 151
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Article 152
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Article 153
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Article 154
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Article 155 Self-explanatory
Article 156
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Article 157
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Article 158
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Article 159
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Article 160
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Article 161
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Article 162
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Article 163
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Article 164
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Article 165
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Article 166
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Article 167
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Article 168
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Article 169
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Article 170
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Article 171
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Article 172
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Article 173
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Article 174
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Article 175
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Article 176
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Article 177
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Article 178
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Article 179
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Article 180
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Article 181
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Article 182
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Article 183
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Article 184
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Article 185
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Article 186
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Article 187
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Article 188
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Article 189
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Article 190
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Article 191
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Article 192
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Article 193
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Article 194
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Article 195
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Article 196
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Article 197
Paragraph (1)
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Paragraph (2)
Letter a
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Letter b
Item 1
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Item 2
If a covenant (wa’d) is not signed by the Chief Executive Officer (CEO), a power of attorney from the
headquarters of a Sharia OMO Participant must specify the right of the Chief Executive Officer (CEO) to assign his or her authority or substitution right. Letter c Self-explanatory Paragraph (3) Self-explanatory Paragraph (4) Self-explanatory
Article 198
Self-explanatory
Article 199
Paragraph (1)
A document of covenant (wa’d) for SBSN repo submission by a Sharia OMO Participant to Bank Indonesia applies to SBSN repo transaction and SBSN repo transaction for sharia financing facility as stipulated in the provisions of Bank Indonesia for standing facilities. Paragraph (2) Self-explanatory
Article 200
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Article 201
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Article 202
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Article 203
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Article 204
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Article 205
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Article 206
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Article 207
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Article 208
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Article 209
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Article 210
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Article 211
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Article 212
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Article 213
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Article 214
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Article 215
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Article 216
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Article 217
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Article 218
Paragraph (1)
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Paragraph (2)
Letter a
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Letter b
Item 1
Self-explanatory
Item 2
If a covenant (wa’d) is not signed by the Chief Executive Officer (CEO), a power of attorney from the headquarters of a Sharia OMO Participant must specify the right of the Chief Executive Officer (CEO) to assign his or her authority or substitution right. Letter c Self-explanatory Paragraph (3) Self-explanatory Paragraph (4) Self-explanatory
Article 219
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Article 220
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Article 221
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Article 222
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Article 223
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Article 224
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Article 225
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Article 226
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Article 227
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Article 228
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Article 229
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Article 230
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Article 231
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Article 232
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Article 233
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Article 234
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Article 235
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Article 236
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Article 237
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Article 238
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Article 239
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Article 240
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Article 241
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Article 242
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Article 243
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Article 244
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Article 245
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Article 246
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Article 247
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Article 248
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Article 249
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Article 250
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Article 251
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Article 252
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Article 253
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Article 254
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Article 255
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Article 256
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Article 257
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Article 258
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Article 259
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Article 260
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Article 261
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Article 262
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Article 263
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Article 264
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Article 265
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Article 266
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Article 267
“Abnormal condition” is a situation or circumstance occurring owing to any failure of or damage to the hardware, software, communication network, application, and supporting facilities affecting smooth implementation of BI-ETP, BI-SSSS, and/or BI-RTGS. OMO Transactions in rupiah at least include issuance of SBI and SDBI, Conventional OMO Repo Transactions, Conventional OMO Reverse Repo Transactions, Conventional OMO Term Deposit in rupiah, issuance of SBIS, Sharia OMO Repo Transactions, and Sharia OMO Reverse Repo Transactions.
Article 268
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Article 269
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Article 270
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Article 271
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Article 272
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Article 273
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Article 274
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Article 275
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Article 276
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Article 277
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Article 278
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Article 279
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Article 280
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Article 281
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Article 282
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Article 283
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Article 284
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Article 285
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Article 286
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Article 287
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Article 288
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Article 289
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Article 290
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Article 291
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Article 292
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Article 293
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Article 294
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Article 295
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Article 296
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Article 297
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Article 298
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Article 299
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Article 300
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Article 301
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Article 302
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Article 303
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Article 304
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Article 305
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Article 306
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Article 307
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Article 308
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Article 309
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Article 310
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Article 311
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Article 312
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Article 313
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Article 314
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Article 315
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Article 316
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Article 317
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Article 318
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Article 319
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Article 320
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Article 321
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Article 322
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Article 323
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Article 324
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Article 325
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Article 326
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Article 327
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Article 328
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Article 329
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Article 330
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Article 331
Self-explanatory
Article 332
Self-explanatory
Article 333
Self-explanatory
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