Indonesia - Clearstream

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Market Profile Cash settlement Cash management Payments in IDR and foreign currencies are restricted. Non-resident investors are not permitted to hold overdrafts on their IDR cash accounts in Indonesia. The rules for cash and foreign exchange transactions are as follows: Parties to transfer Transfer allowed? Exceptions Resident to resident Yes Unless the resident account is with an offshore bank. Non-resident to resident Yes Unless the resident account is with an offshore bank. Resident to non-resident No Unless: • To settle foreign exchange transactions with an onshore bank for the non-resident’s account with an onshore bank (subject to restrictions on derivative transactions); • To settle IDR transfers to a non-resident account with an onshore bank related to underlying economic activities in Indonesia a . Non-resident to non-resident b No Unless: • Between two onshore accounts (not necessarily at the same onshore bank) of the same non-resident entity; • To settle IDR transfers between non-resident accounts with onshore banks related to underlying economic activities in Indonesia c . • To settle foreign exchange transactions with an onshore bank for a non-resident account with an onshore bank. a. See “Economic activities for which resident to non-resident transfer of IDR is allowed” on page 6. b. See “Economic activities for which non-resident to non-resident transfer of IDR is allowed” on page 6. c. See “Documentary proof required for non-resident to non-resident transfer of IDR” on page 7. Economic activities for which resident to non-resident transfer of IDR is allowed • Payments related to direct participation in investments in Indonesia; • Payments related to trades in IDR securities/valuable papers issued by an Indonesian entity; • Payments related to offshore borrowings in IDR including debt restructuring; • Opening of import letter of credit in IDR with an onshore bank; • Opening of local letter of credit; • Purchasing of goods and service in Indonesia; • Cost of living for foreigners in Indonesia. Economic activities for which non-resident to non-resident transfer of IDR is allowed • Payments related to acquisition of a direct investment in Indonesia; • Payments related to the trades in IDR securities/valuable papers issued by an Indonesian entity; • Purchasing of goods and services in Indonesia; • Cost of living for foreigners in Indonesia. 20 December 2011 Clearstream Banking Indonesia - 6 Market Profile
Indonesia Documentary proof required for non-resident to non-resident transfer of IDR • For transactions of value less than or equal to IDR 500 million, no documentation is required but a declaration or other information about the type of underlying transactions must be supplied. • For transactions of values greater than IDR 500 million, the following documentation is required: - Dividend payment: a copy of the results from the shareholders’ meeting; - Direct investment: copy of the sales/purchase contract. • For sale/purchase of securities, a copy of the sale/purchase confirmation1 of the broker or any authorised party is required. • For dividend / coupon payments, the following documentation is required: - Dividend payment: a copy of the dividend payment confirmation from the issuing company; - Interest payment: a copy of the payment notification from the security issuer. Foreign exchange restrictions The IDR is a managed floating currency for which the central bank intervenes to stabilise the exchange rate against the USD. The central bank quotes the USD buy and sell rates on a daily basis. Foreign exchange controls require custodian banks report as follows, according to the size of the transaction: • Transactions of USD 10,000 or over: daily inward and outward remittance transactions by customers in IDR and foreign currency and local transactions in foreign currencies between local residents. • Transactions below USD 10,000: lump sum of movements. Foreign exchange transactions prohibited for banks • Extending credit in IDR or foreign currencies unless through certain retail consumer loans; • Granting overdraft facilities, including temporary overdrafts and intraday overdrafts; • Placing IDR with non-residents, including any IDR transfers to offshore banks; • Purchasing securities in IDR issued by non-residents; • Inter-office transactions in IDR; • Equity participation in IDR with non-residents. 1. Against payment settlement instructions are considered to be supporting documents. Clearstream Banking 20 December 2011 Market Profile Indonesia - 7
Page 1 and 2: Indonesia Market infrastructure Ins
Page 3 and 4: Investment regulation Holding restr
Page 5: Settlement process Settlement cycle
Page 9 and 10: Registration Fixed income securitie

Indonesia - Clearstream

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