The Regulation Of Bank Indonesia No. 10/37/pbi/2008 Year 2008

Original Language Title: Peraturan Bank Indonesia Nomor 10/37/PBI/2008 Tahun 2008

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Read the untranslated law here: http://peraturan.go.id/inc/view/11e44c4f878731c0ba67313232313538.html

PBI 10-37-2008 Text copy _?.
Back COUNTRY SHEET Republic of INDONESIA No. 198, 2008 (Additional explanation in the State Gazette of the Republic of Indonesia Number 4945) BANK INDONESIA REGULATION number: 10/37/PBI/2008 REGARDING FOREIGN EXCHANGE TRANSACTIONS AGAINST the RUPIAH by the GRACE of GOD ALMIGHTY, the GOVERNOR of BANK INDONESIA, Considering: a. that the purpose of the Bank Indonesia is reaching and maintaining the stability of the value of the rupiah;
.,, b. that the stability of the rupiah's value requires the support of a healthy financial markets, particularly the domestic foreign exchange market, to support the national economy;
.,, c. that the role of the Bank of Indonesia is required to promote the development of healthy foreign exchange market through a strategic and comprehensive arrangements, particularly related to foreign exchange transactions against the rupiah;
.,, d. that based on considerations as referred to in letter a, letter b, letter c, and perceived need to set provisions regarding foreign exchange transactions against the rupiah within a Bank Indonesia Regulations;
.,, Considering: 1. Act No. 7 of 1992 about banking (State Gazette of the Republic of Indonesia Number 31 in 1992, an additional Sheet of the Republic of Indonesia Number 3472) as amended by Act No. 10 of 1998 (State Gazette of the Republic of Indonesia Number 182 of 1998, an additional Sheet of the Republic of Indonesia Number 3790);
., ,2. Act No. 11 of 1999 on Bank Indonesia (the State Gazette of the Republic of Indonesia year 1999 Number 66, an additional Sheet of the Republic of Indonesia Number 3843) as last amended by regulation of the Government Substitute Act No.2 of 2008 (State Gazette of the Republic of Indonesia Number 142 in 2008, an additional Sheet of the Republic of Indonesia Number 4901);
., ,3. Act No. 24 of 1999 regarding foreign exchange Traffic and exchange rate System (State Gazette of the Republic of Indonesia Number 67 in 1999, an additional Sheet of the Republic of Indonesia Number 3844);
., ,4. Act No. 21 of 2008 about Islamic banking (State Gazette of the Republic of Indonesia Year 2008 Number 94, an additional Sheet of the Republic of Indonesia Number 4867);
DECIDED:.,, define: BANK INDONESIA REGULATION on FOREIGN EXCHANGE TRANSACTIONS AGAINST the RUPIAH.
CHAPTER I GENERAL PROVISIONS article 1 In this Bank Indonesia Regulation is:.,, 1. The Bank is a public bank as stipulated in Act No. 7 of 1992 about Banking as amended by Act No. 10 of 1998 including a foreign bank branch offices in Indonesia and Islamic commercial banks as stipulated in Act No. 21 of 2008 about Islamic banking.
., ,2. Foreign exchange transactions Against the Rupiah is the buying and selling of foreign currency against the rupiah in the form:.,,.,, a. spot transactions, including those transactions carried out with the currency today and/or currency of tomorrow;
.,, b. foreign exchange derivatives transactions against the dollar standard (plain vanilla) in the form of forward, swaps, options, and other transactions which can be equated with it; 3. The customer is the party that uses the services of the Bank.

4. Export/import Activities are:.,, a. send the goods and/or services to outside the region of Indonesia (export);

b. place the goods and/or service into the territory of Indonesia (import); and/or, c.., domestic trade activities associated with the letter a and letter b above.
., ,5. Overdraft is a negative balance on the current account of the customer that cannot be paid in full at the end of the day.
CHAPTER II article 2 TRANSACTION SETTINGS.,, (1) the Bank can perform foreign exchange transactions against the Rupiah and/or against other foreign currency for its own interest or in the interest of the customer on the basis of a contract.
.,, (2) in conducting foreign exchange transactions Against the Rupiah, banks required to have internal guidelines in writing.
Article 3 in conducting foreign exchange transactions Against the Rupiah by the customer is not a Bank, the Bank is obligated to use quotations in the price (exchange rate) of foreign currency against the dollar set by the Bank.

Section 4.,, (1) foreign exchange transactions Against the Rupiah settled with the mandatory transfer of principal funds in full.
.,, (2) the obligation of settlement of foreign exchange transactions Against the Rupiah with the transfer of the full principal amount of funds as referred to in paragraph (1), excluded for:.,,.,, a. Rupiah Against foreign exchange transactions conducted by the Bank and/or client that is experiencing extraordinary events (force majeure), based on the Bank's assessment and supported with evidence of sufficient documents;
.,, b. extension of foreign exchange transactions Against the Rupiah for the purposes of hedging for:.,,.,, 1. Export/import Activities experiencing force majeure, if the period of foreign exchange transactions Against the Rupiah the shortest one (1) months and can be extended with the frequency extension and the period of time in accordance with the conditions encountered;
., ,2. venture funds, paid-in capital, profit was arrested, and the loans the Banks sub-ordination accounted for in liabilities fulfillment of the minimum capital a Bank, when a period of foreign exchange transactions Against the briefest Rupiah 3 (three) months and can be extended with the frequency extension and the period of time in accordance with the conditions encountered;
., ,3. direct investment activities in real sector with the shortest period of 1 (one) year of the source of funds in foreign currency, in a period of foreign exchange transactions Against the briefest Rupiah 3 (three) months and can be extended with the frequency extension and the period of time in accordance with the conditions encountered;
., ,4. foreign loans in foreign currency with the shortest period of 1 (one) year, when a period of foreign exchange transactions Against the briefest Rupiah 3 (three) months and can be extended with the frequency extension and the period of time in accordance with the conditions encountered;
., ,5. Bond, stock and corporate bonds that had been owned by the shortest of three (3) months, if the period of foreign exchange transactions Against the briefest Rupiah 3 (three) months and can be extended with the frequency extension and the period of time in accordance with the conditions encountered; as well as the mandatory supported with evidence of adequate documents.
Article 5, (1) the Bank is prohibited from conducting foreign exchange transactions Against the Rupiah in the transaction or the transaction potential associated with structured product.
.,, (2) the provisions referred to in subsection (1) applies for the Bank as a structured product issuer or Bank as agent for the seller of the structured product (selling agent).
Section 6.,, (1) the Bank is prohibited from giving loans in foreign currency and/or in rupiah to the customer for the benefit of foreign exchange derivatives transactions against the rupiah.
.,, (2) the prohibition on granting credit foreign currency and/or rupee as referred to in paragraph (1) excluded for foreign exchange derivatives transactions against the rupiah that is done in order to export/import Activities.
.,, (3) the granting of foreign exchange credit and/or dollars to foreign exchange derivatives transactions against the rupiah which is done in the framework of the activities of export/import as referred to paragraph (2) the mandatory supported with evidence of adequate documents.
.,, (4) the provisions as referred to in subsection (2) does not apply to foreigners.
Chapter 7.,, (1) the Bank is prohibited from giving Overdrafts to Clients in the course of foreign exchange transactions against the Rupiah.
.,, (2) the Bank is prohibited from providing other facilities that can be equated with an overdraft as referred to in paragraph (1) in the course of foreign exchange transactions against the Rupiah.
Article 8 the Bank is obligated to complete and menatausahakan supporting documents the implementation of transactions referred to in article 4 paragraph (2), and article 6.

Article 9 in the framework of reporting foreign exchange transactions Against the Rupiah, banks are bound to the conditions.

Article 10 in addition to the mandatory provisions in the regulations meet Bank Indonesia this, banks that perform foreign exchange transactions against a compulsory subject to the provisions of the Rupiah Bank Indonesia prevailing related.

CHAPTER III SANCTIONS article 11 Banks that did the breach of the obligation referred to in article 2 paragraph (2), article 3 and/or article 8 administrative penalties in the form of: a. a written reprimand;

b. decrease in the level of health of the Bank;

c. freezing of certain business activities;., d., the inclusion of members of the Executive Board, a Bank employee, a stockholder in a list of people barred from becoming the owner and administrator of the Bank; and/or, e.., dismissal of administrators of the Bank and subsequently appoint a temporary replacement until the lifting and general meetings of shareholders or members of the cooperative raised replacement stick with the approval of Bank Indonesia.
Article 12.,, (1) the Bank's breach of article 4, article 5, article 6 and article 7 obligations sanctioned pay each of 10% (ten perseratus) from the nominal value of each transaction that violated.
.,, (2) the calculation of the nominal value of the infringing transaction referred to in subsection (1) is subject to the following:.,,.,, a. violation of the obligation of transfer of funds the full principal amount as referred to in article 4, calculated from the nominal value of the Rupiah Against foreign currency transaction in question;
.,, b. violation of foreign exchange transactions Against the Rupiah as stipulated in article 5, calculated from the nominal value of the Rupiah Against foreign currency transaction in question;
.,, c. violation of the ban on granting of credit referred to in article 6, calculated from the value of a credit agreement that is used for foreign exchange derivatives transactions against the rupiah;

.,, d. Violation of the ban on granting Overdrafts and/or other facilities that can be equated with an overdraft as referred to in article 7, is calculated from the value of the Overdraft and/or other facilities which can be used interchangeably with the given Bank Overdrafts to Clients;
.,, (3) Total obligations to pay penalties as referred to in subsection (1) at most amounted to Rp 27.000.000.000 (twenty-seven billion rupiah) within one (1) calendar year.
.,, (4) counting of obligations to pay sanctions referred to in article 11 paragraph (1) using the Middle rate of Bank Indonesia transaction exchange rate on the date of the occurrence of the offence.
CHAPTER IV TRANSITIONAL Article 13.,, (1) a Bank that conducts foreign exchange transactions Against the Rupiah in order to export/import or Activities associated with export/import Activities prior to the enactment of this PBI can forward the transactions in question until the fall time of the contract.
.,, (2) the transaction referred to in subsection (1) that are still outstanding in a contract that falls in the time after the enactment of this MATTER can be resolved without the movement of funds among other subject matter through:.,,.,, a. acceleration of settlement (early termination "approach) or termination (unwind) foreign exchange transactions Against the Rupiah;
.,, b. settlement of transactions through the restructuring of contracts foreign exchange transactions Against the Rupiah; and/or c. completion of transactions by using loan funds from banks.
.,, (3) the completion of the transaction in a manner referred to in subsection (2) may be made along there is a written agreement between the parties that perform foreign exchange transactions against the Rupiah.
.,, (4) the completion of the transaction in a manner referred to in subsection (2), must use the rupiah along possible.
.,, (5) completion of a transaction referred to in subsection (2), mandatory equipped with adequate documents.
Article 14 the provisions governing sanctions referred to in article 11 applies to the Bank:.,, a. do settlement transactions not in order to export/import Activities as referred to in article 13; and/or, b.., did the settlement of foreign exchange transactions Against the Rupiah that is not supported by adequate documents as referred to in article 13 paragraph (3).
Chapter V CLOSING Clause 15 of the regulation implementation of Bank Indonesia Regulations is regulated further in the circular letter of Bank Indonesia.

Article 16 of the regulation of Bank Indonesia began to take effect on the date set.

In order to make everyone aware of it, ordered the Bank Indonesia Regulations enactment this by its placement in the State Gazette of the Republic of Indonesia.

.,, Set in Jakarta on 16 December 2008, BANK INDONESIA GOVERNOR BOEDIONO Enacted in Jakarta on December 16, 2008 the MINISTER of LAW and HUMAN RIGHTS Republic of INDONESIA, STATE GAZETTE SUPPLEMENTARY MATTOANGIN RI No. 4945 (explanation of the 2008 State Gazette Number 198) EXPLANATION of BANK INDONESIA REGULATION number: 10/37/PBI/2008 REGARDING FOREIGN EXCHANGE TRANSACTIONS AGAINST the RUPIAH I.. The central bank, As mandated under the Act for the purpose of achieving and maintaining the stability of the value of the rupiah, Bank Indonesia formulated various policies for the achievement of those goals. Meanwhile, the development of the domestic foreign exchange market forward and healthy is a step that needs to be done in order to increase the role of the domestic foreign exchange market in the achievement of the stability of the rupiah value and support the overall economy. In this regard, Bank Indonesia need to do the steps towards completion of regulations related to the activities of foreign exchange transactions in the domestic market through a strategic and comprehensive approach, in line with efforts to minimize foreign exchange transactions against the rupiah that is speculative but still support activity in the sector of the rill. In addition, to raise awareness and prudence Bank in conducting foreign exchange transactions against the rupiah in the form of derivatives transactions, the imposition of sanctions against abuses need to be done proportionately.

II. For the SAKE of ARTICLE ARTICLE article 1., pretty clear, article 2, paragraph (1),, is a contract is a written confirmation which indicates the occurrence of transactions, among others, in the form of conversation, dealing SWIFT/Telex/tested fax confirmation, or other written confirmation. Paragraph (2).,, is quite clear.

Section 3.,, is a "price (exchange rate) quotations in foreign exchange against the rupiah" is the price (exchange rate) to buy and/or price (exchange rate) the selling of foreign exchange against the rupiah that is assigned by the Bank and became the basis of an agreement to conduct a transaction.

Understanding the customer instead of the Bank does not include Bank Indonesia.

Article 4, paragraph (1), the definition of "transfer of principal funds in full" to foreign exchange transactions Against the Rupiah was the surrender of the Fund in real terms for each of the transactions and/or transactions to buy foreign exchange against the Rupiah of the full value of the nominal transaction or its equivalent. Paragraph (2) letter a,,.,, the definition of "extraordinary events (force majeure)" is a situation which led to the Bank and/or the customer cannot meet its obligations in accordance with the contract, namely: earthquakes, volcanoes, tsunamis, floods, hurricanes, landslides, fires, mass riots, war, terrorism, strikes, delays in shipment/delivery of goods, and/or failure of the system that is used in the transaction.

The definition of "Bank valuation", among others, include the reasonableness for the consequences arising from force majeure experienced against foreign exchange transactions against the Rupiah.

Proof of adequate documents, among others, in the form of a written document issued by the Government, the mass media or other communication media. Letter b., 1., letters, numbers, quite obviously number 2.,, is a "paid-in capital, venture funds, profit was arrested, and the loans the Banks sub-ordination accounted for in liabilities fulfillment of the minimum capital a Bank" is referred to in the provisions on capital adequacy of banks and general provisions regarding capital adequacy the bank taking into account General market risk. Number 3, the definition of "direct participation" was planting Fund in the form of shares in the company not through capital market. 4.,, is quite clear. Number 5, a period of State ownership, stock and corporate bonds are most short of three (3) months based on the calculation of the combined securities portfolio (a basket of securities).

Nominal value of a Bond, stock, and/or corporate bonds that are used as the basis of the (underlying) foreign exchange transactions against the rupiah is calculated based on the price of the acquisition.

Bond consists of bonds of State and the Treasury of the State.

Article 5, paragraph (1),, is a "structured product" is a product which is a combination of various instruments with foreign exchange derivatives transactions against the rupiah, for the purpose of obtaining additional income (return enhancement), which can push the transaction of purchase and/or sale of a foreign currency against the rupiah for speculative purposes and can cause instability of the value of the rupiah. Subsection (2),, including a Bank as an agent of the seller in this case is a structured product sales abroad (offshore product) related to foreign exchange against the rupiah.

Article 6, paragraph (1),, is a "credit" is the provision of money or bills that can be equated with it, based on the approval of a loan agreement between the Bank borrowing by other parties which require that the borrower to pay off a loan after a certain period of time with the giving of flowers, including the takeover of the Bill in order activity factoring and credit purchase or takeover from other parties. Subsection (2), quite obviously, subsection (3), quite obviously, subsection (4), the definition of "foreign parties" is the foreign party referred to in the provisions of Bank Indonesia transaction restrictions governing the granting of loans in rupiah and foreign currency by the Bank.

Article 7, article 8, clear enough, clear enough, article 9, the definition of "conditions" means the terms governing Bank Indonesia daily report public bank.

Section 10.,, is a "Bank Indonesia prevailing conditions" among other provisions the Bank Indonesia transaction restrictions governing rupiah and foreign currency lending by banks and Bank Indonesia provision governing the purchase of foreign currency against the rupiah to banks.

Article 11,, is quite clear.

Article 12, paragraph (1).,, is quite clear. Subsection (2), quite obviously, subsection (3), quite obviously, subsection (4), quite obviously, subsection (5), quite obviously, subsection (6), quite obviously, paragraph (7), quite obviously, subsection (8), Central Bank Indonesia Rate, calculated by means of the selling exchange rate of the transaction plus the exchange rate buy transaction, divided 2 (two).

Article 12, rules of practice, among others, include the settings about the proof document.

Article 13.,, is quite clear.

Article 14, Article 15, clear enough, clear enough, article 16,, is quite clear