SHEET COUNTRY REPUBLIC OF INDONESIA

No. 224, 2015 BANKING. BI. Foreign Exchange. Rupiah. Foreign Bank. Change. (Explanation In Addition Of State Sheet Republic Indonesia Number 5744).

INDONESIA BANK REGULATION

NUMBER 17 /16/PBI/2015

ABOUT

THIRD CHANGE OVER INDONESIA BANK REGULATION

NUMBER 16 /17/PBI/2014 ABOUT

FOREIGN EXCHANGE TRANSACTION AGAINST RUPIAH

BETWEEN BANKS WITH FOREIGN PARTIES

WITH THE GRACE OF GOD ALMIGHTY

THE GOVERNOR OF THE BANK OF INDONESIA,

DRAWS: A. that dynamics of global economic and financial conditions

requires an effort for increased stability

exchange rate and strengthening financial market durability

domestic;

b. that increase in exchange rate stability and

strengthening of the domestic financial market durability can

be achieved through the development of the foreign exchange market

a healthy and balanced domestic;

c. that in order to realize the market foreign exchange

A healthy and balanced domestic required effort

to drive the increase in transaction liquidity

by still paying attention to the principle of pruuness;

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2015, No. 224 -2-

d. that based on consideration as

referred to in letter a, letter b, and letter c, need

make a third change over Bank Regulation

Indonesia about the Foreign Valuta Transaction against

Rupiah between the Bank and the Foreign parties;

Given: 1. Law No. 23 of 1999 on Bank

Indonesia (State Gazette of the Republic of Indonesia

in 1999 Number 66, Additional Gazette

Republic of Indonesia Number 3843) as has been

changed several times, last with Invite-

Invite Number 6 Year 2009 on Redemption

Government Regulation amendments

No. 2 Year 2008 on the Second Amendment

Act No. 23 of 1999 on Bank

Indonesia to be an Act (State Sheet

Republic of Indonesia Year 2009 Number 7,

sheet of state of the Republic of Indonesia No. 4962);

2. Law No. 24 Year 1999 about Then

Cross Devisa and Exchange Rate System (sheet

state of the republic of Indonesia in 1999 No. 67,

additional sheet of state of the Republic of Indonesia

number 3844);

DECIDED:

SET: INDONESIA BANK REGULATIONS ON CHANGES

THIRD ON INDONESIA BANK REGULATION NUMBER

16 /17/PBI/2014 ABOUT FOREIGN EXCHANGE TRANSACTION

ON THE RUPIAH BETWEEN BANKS WITH PARTIES

ASING.

Article I

Some provisions in Bank Indonesia Regulation

Number 16 /17/PBI/2014 on Foreign Valuta Transaction

against Rupiah between Bank with Foreign Parties

(Indonesian Republic of the Republic of 2014 Number

213, Additional Gazette Republic of Indonesia

Number 5582) which has been changed several times with

Bank Indonesia Regulation:

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2015, No. 224-3-

a. Number 17 /7/PBI/2015 (republican Gazette

Indonesia Year 2015 Number 117, Supplement

The State Sheet Of The Republic Of Indonesia Number 5702);

b. Number 17 /14/PBI/2015 (republican Gazette

Indonesia In 2015 No. 202, Supplement

sheet of state of the Republic of Indonesia Number 5737),

changed as follows:

1. The provisions of Article 2 are amended so that

below:

Section 2

(1) The Bank may perform the Foreign Valuta Transaction

Against Rupiah with a Foreign Party on the basis

a contract.

(2) In doing Valuta

Transaction Activity Against Rupiah, Bank is mandatory:

a. have written internal guidelines

as contemplated

the banking authorities governing about

derivatives transactions and applications

Bank risk management;

b. satisfy the banking authority provision

which regulates the category of Bank that

can perform a foreign exchange transaction activity

;

c. implement risk management effectively

as it means in provisions

regulatory banking authorities regarding

application of the Bank ' s risk management;

d. perform a self assessment regarding

Bank risk management readiness,

as contemplated

the banking authority governing regarding

derivatives transactions and health level

The General Bank;

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2015, No. 224 -4-

e. perform mark-to-market for transactions

derivatives as referred to in

the provisions of the banking authority governing

regarding derivative transactions and applications

bank risk management;

f. provide education on the Transaction

Derivatives of Foreign Valuta Against Rupiah

to Foreign Parties for implementation

activities of the Derivatives Of Foreign Valuta Transaction

Against Rupiah, and

g. comply with the provisions of the Bank of Indonesia which

set about the usage obligations

Rupiah.

2. The provisions of Article 3 are amended so that

below:

Article 3

(1) The Foreign Valuta Transaction Against Rupiah which

is conducted Bank with a Foreign Party above

a certain amount (threshold) must have

Underlying Transaction.

(2) Underlying Transaction as intended

on paragraph (1) covers the entire activity:

a. trade in goods and services in and

abroad; and/or

b. investments include foreign direct investment,

portfolio investment, loans, capital, and

other investments in and abroad.

(3) Underlying Transaction of trade activities

goods and services and/or investment as

referred to the paragraph (2) includes also estimates

income and cost (income and expense

estimation).

(4) Underlying Transaction as intended

on paragraph (2) does not include:

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2015, No. 224-5-

a. use of the Indonesia Bank Certificate for

Transactions of Foreign Valuta Derivatives Against

Rupiah;

b. the placement of funds on the Bank (vostro) between

another is savings, giro, deposits, and

Negotiable Certificate of Deposit (NCD); and

c. the still-not-

credit granting facility is withdrawn, among other things standby loan and

undisbursed loan.

(5) Special for sale of foreign exchange against

Rupiah through transaction forward and for

Rupiah transfer to a Party-owned account

Foreign, Underlying Transaction also includes

entitlements foreign exchange funds within the country

and abroad include savings,

giro, deposits, and Negotiable Certificate of Deposit

(NCD).

3. The provisions of Section 5 are amended so that

The following:

Section 5

(1) Certain amounts (threshold) as

are referred to in Section 3 of the paragraph (1), for

Derivatives of sale and Derivatives transactions

buy between the Bank with the Foreign Party is

each USD1,000,000.00 (one million dollars

United States) or its equivalent per transaction

per Foreign Party and per position (outstanding)

per Bank.

(2) Special for foreign exchange sales against

Rupiah through transaction forward, the amount

specified (threshold) as referred to in

Section 3 of the paragraph (1) is USD5.000,00 (five

million United States dollars) or its equivalent per

transaction per Foreign and Position

(outstanding) per Bank.

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2015, No. 224--6-

(3) Derivative Transactions sold between the Bank with

Foreign and Transaction Derivatives purchased between

The Bank with the Foreign Party as intended

in paragraph (1) and paragraph (2) is prohibited from exceeding the value of

nominal Underlying Transaction.

(4) In terms of the nominal value Underlying Transactions

as referred to in paragraph (3) not in

multiples of USD10.000.00 (ten thousand dollars

United States) then against the nominal value

Underlying Transaction is intended to be performed

rounding up in multiples

USD10.000.00 (ten thousand American dollars

Union).

(5) Derivative Transaction Transactions are prohibited

exceeds the Underlying Transaction.

4. The provisions of Section 6 are amended so that

below:

Section 6

Liability has Underlying Transaction for

The Foreign Valuta Transaction Against Rupiah by Party

Foreign to the Bank above the amount certain (threshold)

as referred to in Section 4 of the paragraph (1), Section 5

paragraph (1), and Section 5 of the paragraph (2) does not apply to

the initial Derivative Transaction of the Derivative Transaction.

through:

a. extension of transactions (roll over) along

term of extension of the transaction (roll over)

the longest the same as the timeframe

Underlying The initial transaction;

b. acceleration of transaction completion (early

termination); or

c. termination of transaction (unwind).

5. The provisions of Article 19 are amended so that

below:

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2015, No. 224-7-

Article 19

(1) Transaction Settlement Spot between the Bank with

The Foreign Party is required to be made with the transfer

Full base funds.

(2) The completion of the Derivative Transaction between Bank

with Foreign Parties may be performed

netting or with the transfer of the principal fund

in full.

(3) Completion of the Derivative transaction between the Bank

with the Foreign Party that can be done

netting as referred to in paragraph (2)

applies only to extension of transactions (roll

over), acceleration of transaction settlement (early

termination), and termination of the transaction (unwind).

(4) Completion of foreign exchange sales against

Rupiah by Foreign Parties to the Bank through

transaction forward with nominal transaction

under certain amount (threshold) as

referred to In section 5 of the paragraph (2) is mandatory

with the transfer of the principal funds in full.

(5) The completion of the foreign exchange sales against

Rupiah by the Foreign Party to the Bank through

transaction forward by using

Underlying Transactions of fund ownership

foreign exchange in Within the country and abroad

is mandatory with the transfer of the principal fund

in full.

6. The provisions of Section 20 are amended so that

below:

Section 20

(1) Derivatives of the Derivative Transaction between Bank

with Foreign Parties netting as

referred to in Section 19 of the paragraph (3)

(threshold) as referred to in Section 5

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2015, No. 224 -8-

paragraph (1) can be performed throughout the supported

with Underlying Transaction of the Transaction

The initial Derivatives.

(2) In the event at the time of the completion of the Transaction

Derivatif as Referred to in paragraph (1)

The Foreign Party cannot deliver the document

Underlying Transaction then the settlement

Derivative transactions are performed with

the full transfer of the principal funds.

7. The provisions of Section 21 are amended so that

below:

Section 21

(1) The type of document Underlying Transaction is set

by Bank Indonesia.

(2) The invoice document is in the foreign exchange of

transactions that are required to use Rupiah

as set out in the provisions of the Bank

Indonesia that governs regarding the obligations

the use of Rupiah in the Unity State region

Republic of Indonesia, cannot be

documents Underlying Transaction.

(3) Further provisions regarding the designation of type

the document as referred to in paragraph (1)

is set in the Indonesian Bank Circular Letter.

8. The provisions of Article 23 are amended so that

below:

Article 23

(1) In terms of the Bank doing Derivative Transactions

with the Foreign Party above a certain amount

(threshold) as contemplated in Section 5

paragraph (1) and paragraph (2), the Bank shall ensure

The Foreign Party to deliver the document

as follows:

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2015, No. 224-9-

a. Underlying Transaction that can

be accounted for, whether or not to be expected

in the final and an approximation; and

b. Supporting documents include statements

written that authenticated of the Foreign Party

which contains information about:

1. the authenticity and truth of the document

Underlying Transaction as

referred to the letter a;

2. use of the Underlying document

The transaction for the Derivative Transaction

is most of a nominal value

Underlying Transaction in the system

banking in Indonesia;

3. the number of needs, purposes of use,

and the date of the use of the foreign exchange,

in terms of the Underlying document

The transaction as referred to

the letter a is an estimated purchase

the foreign exchange against Rupiah; and

4. source, number of sales, and

the availability date of the foreign exchange, in

the document Underlying Transaction

as referred to in the letter a

is the estimated sale of the foreign exchange

against Rupiah.

(2) In terms of the Foreign Party doing a settlement

The Derivative Transaction with the most nominal value

many of the specified amount (threshold)

netting as referred to in Section 20

paragraph (1) then the Foreign Party is required to deliver

the document as referred to in paragraph (1) .

9. The provisions of Article 30 are amended so that

below:

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2015, No. 224 -10-

Section 30

(1) The bank in violation of the provisions as

is 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 7, Article

13, Article 14 of the paragraph (1), Section 15 of the paragraph (2), Section 17,

Article 18 paragraph (2), Section 19 of the paragraph (1), Section 19 of the paragraph

(4), Article 19 of the paragraph (5), Section 22 of the paragraph (1), Section 23

paragraph (1), Section 23 of the paragraph (2), Section 24, Section 25 of the paragraph

(2), Section 25 of the paragraph (3), Section 25 of the paragraph (3), Section 25 (3), Section 25 (Section 2), Section 25 (Section 2)

verse (4), Article 25

paragraph (5), and/or Section 25 of the paragraph (6) imposed

administrative sanction of a reprimand written and

sanction liability pay of 1% (one

percent) of the nominal value of the transaction that

is violated for any breach, with

the minimum amount of sanctions

Rp10,000.000.00 (ten million rupiah) and most

a lot of Rp1,000.000.00 (one billion

rupiah).

(2) the nominal value of the transaction that

is violated as specified in paragraph (1)

is set as follows:

a. The difference between the total value of the transaction

the foreign exchange against Rupiah with the amount

specified (threshold) of fulfillment obligations

Underlying Transaction; or

b. Total value value of Foreign Valuta Transaction

Against the unsupported Rupiah

with Underlying Transaction in terms of value

nominal transaction under certain amount

(threshold) but done netting.

(3) Counting liability sanction

as referred to in paragraph (1)

using kurs Jakarta Interbank Spot Dollar

Rate (JISDOR) on the date of occurrence

violation.

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2015, No. 224-11-

Article II

The Bank of Indonesia Regulation is in effect on

the date is promulred.

So that everyone knows it, ordering

the invitation of the Bank of Indonesia Regulation with

discoverable in State Sheet of the Republic

Indonesia.

specified in Jakarta

on October 2, 2015

GOVERNOR OF THE BANK OF INDONESIA,

ttd

AGUS D. W. MARTOWARDOJO

Reundfiled in Jakarta

on October 7, 2015

MINISTER OF LAW AND RIGHTS MAN

REPUBLIC OF INDONESIA,

ttd

YASONNA H. LAOLY

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