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Bank Indonesia Regulation Number 17/6/pbi/2015 2015

Original Language Title: Peraturan Bank Indonesia Nomor 17/6/PBI/2015 Tahun 2015

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SHEET COUNTRY INDONESIA

No. 116, 2015 BANKING. BI. Foreign Exchange. Rupiah. The bank. Domestic. Change. (Explanation In Addition Of State Sheet Republic Of Indonesia Number 5701).

INDONESIA BANK REGULATION

NUMBER 17 /6/PBI/2015

ABOUT

CHANGES IN INDONESIA BANK REGULATION

NUMBER 16 /16/PBI/2014 ABOUT THE FOREIGN EXCHANGE TRANSACTION AGAINST THE RUPIAH BETWEEN THE BANKS WITH THE DOMESTIC

WITH THE GRACE OF GOD ALMIGHTY

THE GOVERNOR OF THE BANK OF INDONESIA,

DRAWS: A. that increasingly integrated global economic and financial conditions require efforts for increased economic and financial resilience among others through the creation of an efficient and high-resistant foreign exchange market against turmoil;

b. that in order to create an efficient and efficient foreign exchange market against the fluctuations, the acceleration of domestic foreign exchange markets is needed;

c. that the acceleration of the foreign exchange market is carried through. Increased liquidity and the variation of foreign exchange derivative instruments to Rupiah continue to pay attention to the stability of the exchange rate and the financial system, thus creating market conditions conducive to economic offenders for the cause. doing a value hedge transaction;

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d. that based on consideration as in the letter a, the letter b, and the letter c, need to make changes to the Indonesian Bank Regulation Number 16 /16/PBI/2014 about the Foreign Valuta Transaction Against Rupiah Between the Bank with the Domestic Side;

Given: 1. Law No. 23 of 1999 on Bank Indonesia (State of the Republic of Indonesia Year 1999 No. 66, Additional Gazette of the Republic of Indonesia Number 3843) as amended several times, last with Invite-Invite Number 6 Years 2009 on Establishing Government Regulation Replacement of Law No. 2 Year 2008 on Second Amendment to the Law No. 23 Year 1999 on Bank Indonesia being the Act (State Gazette of the Republic of Indonesia Year 2009 Number 7, Indonesia's Republic of Indonesia Number 4962);

2. Law No. 24 Year 1999 on the Traffic of Devisa and Exchange Rate System (State Gazette of Indonesia Year 1999 Number 67, Additional Gazette of the Republic of Indonesia No. 3844).

DECIDED:

SET: INDONESIA BANK REGULATIONS ON CHANGES TO INDONESIA ' S BANK REGULATION NUMBER 16 /16/PBI/2014 ABOUT FOREIGN EXCHANGE TRANSACTIONS AGAINST THE RUPIAH BETWEEN BANKS WITH DOMESTIC PARTIES.

Article I

Some provisions in Bank Indonesia Regulation Number 16 /16/PBI/2014 on Foreign Valuta Transaction Against Rupiah Between Bank With Domestic Parties (State Of The Republic Of Indonesia 2014 Number 212, Extra Sheet) Republic of Indonesia Number 5581) was changed as follows:

1. The provisions of Article 1 are amended so that it reads as follows:

Article 1

In this Bank of Indonesia Regulation referred to as:

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1. Bank is the General Bank as referred to in the governing Law on Banking and General Bank of Sharia as well as the Sharia Business Unit as referred to in the governing Law on sharia banking, including the branch office of the banks that are located overseas but do not include the office of the General Bank and General Syariah Public Bank of Indonesian law operating abroad.

2. Nasabah is:

a. Individuals who have Indonesian citizenship; or

b. An entity other than the Bank, which is Indonesian law, domiciled in Indonesia, and has the Number of Compulsory Tax (NPWP).

3. The Foreign Valuta Transaction Against Rupiah is a foreign exchange-selling transaction against Rupiah in the form:

a. Spot transactions, including transactions performed with valuta today and/or valuta tomorrow;

b. Foreign Exchange Derivative Transactions against standard rupiah (plain vanilla), in forward, swap, option, and cross currency swap (CCS).

4. Underlying Transactions are the activities underlying the purchase or sale of foreign exchange against Rupiah.

5. Spot transaction is a selling or purchasing transaction between the foreign exchange of Rupiah with the submission of funds performed 2 (two) business days after the date of the transaction, including transactions with the handover of the exchange on the same day (today) or with the submission of 1 (one) business days after the date of transaction (tomorrow).

6. Foreign Exchange Derivative Transactions Against Rupiah is a transaction based on a contract or payment agreement whose value is a derivative of the foreign exchange rate and Rupiah, or a combined derivative of the foreign exchange rate. And Rupiah and the interest rate (foreign exchange and Rupiah), as long as it is not a structured product of a foreign exchange against Rupiah.

2. The provisions of Article 2 are amended so that it reads as follows:

Article 2

(1) The Bank may perform the Foreign Valuta Transaction Against Rupiah for its own benefit and for the benefit of the domestic side on the basis of a contract.

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(2) In conducting of the Foreign Valuta Transaction Against Rupiah, the Bank is mandatory:

a. have written internal guidelines as contemplated in the provisions of the banking authority governing the derivatives transactions and the application of the Bank's risk management;

b. satisfy the provisions of the banking authority governing the Bank category that can conduct foreign exchange transaction activities;

c. implement risk management effectively as referred to in the provisions of the banking authority governing regarding the bank ' s application of risk management;

d. perform a self assessment of the Bank ' s risk management readiness as referred to in the provisions of the banking authority governing the derivatives transaction and the Public Bank health level;

e. Perform mark-to-market for Foreign Valuta Derivatives Transaction against Rupiah as contemplated in the provisions of the banking authorities regarding derivatives transactions and the application of the Bank's risk management; and

f. provide education about the Derivative Transaction of Foreign Valuta Transactions against Rupiah to the Nasabah for the implementation of the Derivatives Of Foreign Valuta Transaction Activities Against Rupiah.

(3) In Doing The Foreign Valuta Transaction Against Rupiah with Nasabah, Banks are required to use the foreign exchange rate (kurs) of the Rupiah set by the Bank.

3. The provisions of Article 3 are amended so that it reads as follows:

Article 3

(1) The Foreign Valuta Transaction Against Rupiah which the Bank does with the Nasabah above a certain amount (threshold) is required to have Underlying Transaction.

(2) Underlying The transaction as referred to in paragraph (1) includes the entire activity:

a. trade in goods and services at home and abroad; and/or

b. investment of direct investment, portfolio investment, on loan, capital, and other investments in and abroad.

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(3) Underlying The transaction of trade in goods and services and/or investment as referred to in paragraph (2) includes also estimated income and cost (income and expense estimation).

(4) Underlying Transaction as contemplated in paragraph (1) does not include:

a. Bank funds include savings, giro, deposits, and a Negotiable Certificate of Deposit (NCD); and

b. a money delivery activity by a fund transfer company.

4. The provisions of Article 17 are amended so that it reads as follows:

Article 17

(1) The bank is prohibited from giving credit or financing in foreign exchange and/or in Rupiah to the Nasabah for the benefit of the Derivative Transaction of Foreign Valuta Against Rupiah.

(2) Bank grant or Bank financing in foreign exchange and/or in Rupiah for trade and investment activities, may be Underlying Transaction of the Derivatives Transaction of Foreign Valuta Against Rupiah in Set up a value hedge.

5. The provisions of Section 20 are amended so that it reads as follows:

Section 20

(1) The bank in violation of the provisions as referred to in Article 3 of the paragraph (1), Section 4 of the paragraph (2), Section 5 of the paragraph (3), Section 5 of the paragraph (5), Section 8 of the paragraph (1), Section 9, Section 8, Section 8, Section 8, Section 8, Section 8 12 paragraphs (1), Section 12 (2), Section 12 (5), Section 12 (6), Section 13 (4), Section 13 (5), Section 13 (6), Section 13, Section 13, Section 13, Section 13, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17, Section 17 obligation of pay by 1% (one percent) of the nominal value of the transaction violated for each violations, with the least amount of sanctions amountto Rp10,000,000.00 (ten million Rupiah) and at most Rp1,000.000.00 (one billion Rupiah).

(2) The nominal value calculation of the transaction violated as referred to in paragraph (1) is set as follows:

a. the difference between the total value of the Foreign Valuta Transaction Against Rupiah with threshold the fulfillment obligations of Underlying Transaction; or

b. Total value of the Foreign Valuta Transaction Against Rupiah not supported with Underlying Transaction in case

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nominal value of transactions under threshold but done completion of the transaction netting.

(3) the nominal value of the transaction violated for Article 17 of the paragraph (1) and Section 18 is set as follows:

a. The violation of the prohibition of the granting of credit or financing as referred to in Article 17 of the paragraph (1), is calculated from the value of the credit or financing agreement used for the Derivative Valid Transaction of Rupiah's Derivative Transaction; and

b. Violation of the prohibition and/or other facilities that may be presented with the cert as referred to in Article 18, is calculated from the cerukan value and/or any other facility that can be exchanged with a given cerallowance Bank to Nasabah.

(4) The calculation of the paid liability sanction as referred to in paragraph (1) uses the kurs Jakarta Interbank Spot Dollar Rate (JISDOR) on the date of the breach.

6. Between Section 22 and Section 23 of the following section, Section 22A, which reads as follows:

Article 22A

All terms of the Derivative Transactions are listed in the Indonesian Bank Regulation Number 16 /16/PBI/2014 of Transactions The foreign exchange of the rupiah between the bank and the domestic and its implementation rules must be read as the Derivatives Transaction of the Foreign Valuta against Rupiah as intended in the Bank of Indonesia Regulation.

Article II

Regulation The Bank of Indonesia started in effect on the date of the promulgations.

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For everyone to know, ordering the invitational of the Bank of Indonesia Regulation with its placement in the State Sheet of the Republic of Indonesia.

Set in Jakarta on 29 May 2015

AGUS D. W. MARTOWARDOJO

UNDRASED in Jakarta on 1 June 2015

MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA,

YASONNA H. LAOLY

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