Under Bank Indonesia (BI) Regulation No. 7/18/PBI/2005, transfers of funds between banks in Indonesia are all centrally routed through BI, which maintains a ‘National Clearing System’ solely dedicated to accepting funds prepared from one banking entity, and then ‘clearing’ those funds to the account(s) of a receiving bank. In essence, BI acts as the ‘invisible’ intermediary for all inter-bank financial movements in the country. In order to basically ‘fine tune’ the process, Bank Indonesia (BI) issued Regulation No. 12/5/PBI/2010, which amends Regulation No. 7/18/PBI/2005.
The 2010 Amendment amends 4 Articles of the 2005 Regulation: 1 (4); 13 (2); 18; 23 (1). Additionally, it repeals Article 24 (2(d) & 4) of the 2005 Regulation.
To set the dilemmatic context: in short, on a daily basis, banks - in anticipation of having a role in the movement of finances throughout the country and to other banks - prepare a special account variously known as a ‘prefund’. When it facilitates a fund transfer between banks (e.g., for a simple bank transfer), Bank Indonesia draws upon that prefund for the given amount needed to conduct a fund transfer of a given size, and then ‘clears’ the funds through its Clearing System to a separate, receiving bank.
In the past, a problem has been created by insufficiently small ‘prefunds’: Bank Indonesia has ‘cleared’ funds to a receiving bank, but has not actually obtained all of the required funds from the original ‘prefunding’ bank. Simply said, for conducting a fund transfer between two or more different banks, the central bank takes a loss, and must assume debt-collection responsibilities (e.g., sanctions on banks).
The amendment’s raison d’etre: according to the Amended Regulation, at the beginning of each business day, all banks must maintain a prefund ‘of sufficient size’: this is to ensure that there is always enough that Bank Indonesia can readily secure funds from the prefunding bank, and clear those funds to the receiving bank - without having to act as the ‘emergency guarantor’ of sorts for any funding insufficiencies on either side. Although not contained in either the amendment or the original regulation, the ‘method’ or ‘calculation’ used to determine the necessary or ‘sufficient’ size of a prefund is referred to Bank Indonesia Circular Letter No. 7/26/DASP, as lastly amended by No. 10/15/DASP.
The amendment (BI Regulation No. 12/5/PBI/2010) was issued on 12 March 2010, but will take force on 30 April 2010.
Under Bank Indonesia (BI) Regulation No. 7/18/PBI/2005, transfers of funds between banks in Indonesia are all centrally routed through BI, which maintains a ‘National Clearing System’ solely dedicated to accepting funds prepared from one banking entity, and then ‘clearing’ those funds to the account(s) of a receiving bank. In essence, BI acts as the ‘invisible’ intermediary for all inter-bank financial movements in the country. In order to basically ‘fine tune’ the process, Bank Indonesia (BI) issued Regulation No. 12/5/PBI/2010, which amends Regulation No. 7/18/PBI/2005.
The 2010 Amendment amends 4 Articles of the 2005 Regulation: 1 (4); 13 (2); 18; 23 (1). Additionally, it repeals Article 24 (2(d) & 4) of the 2005 Regulation.
To set the dilemmatic context: in short, on a daily basis, banks - in anticipation of having a role in the movement of finances throughout the country and to other banks - prepare a special account variously known as a ‘prefund’. When it facilitates a fund transfer between banks (e.g., for a simple bank transfer), Bank Indonesia draws upon that prefund for the given amount needed to conduct a fund transfer of a given size, and then ‘clears’ the funds through its Clearing System to a separate, receiving bank.
In the past, a problem has been created by insufficiently small ‘prefunds’: Bank Indonesia has ‘cleared’ funds to a receiving bank, but has not actually obtained all of the required funds from the original ‘prefunding’ bank. Simply said, for conducting a fund transfer between two or more different banks, the central bank takes a loss, and must assume debt-collection responsibilities (e.g., sanctions on banks).
The amendment’s raison d’etre: according to the Amended Regulation, at the beginning of each business day, all banks must maintain a prefund ‘of sufficient size’: this is to ensure that there is always enough that Bank Indonesia can readily secure funds from the prefunding bank, and clear those funds to the receiving bank - without having to act as the ‘emergency guarantor’ of sorts for any funding insufficiencies on either side. Although not contained in either the amendment or the original regulation, the ‘method’ or ‘calculation’ used to determine the necessary or ‘sufficient’ size of a prefund is referred to Bank Indonesia Circular Letter No. 7/26/DASP, as lastly amended by No. 10/15/DASP.
The amendment (BI Regulation No. 12/5/PBI/2010) was issued on 12 March 2010, but will take force on 30 April 2010.
Ada Pertanyaan? Hubungi Kami 
Professional Solutions
University Solutions
Pro
My Workspace
Pro AI
Terfavorit
Allex QnA
Pro Compliance
