Senin, Januari 16, 2023

Placements of Funds from DHE SDA Special Account Through Term Deposits for Conventional Open-Market Operations in Foreign Currencies Through BI Further Clarified

Previously, Bank Indonesia’s Board of Governors (“BI”) issued Regulation No. 21/26/PADG/2019 (“Regulation 26/2019”), which set the applicable mechanism for the implementation of foreign exchange export proceeds (devisa hasil ekspor – “DHE”) and foreign exchange import payments.
Furthermore, the BI Board of Governors subsequently revised this proceeds and payments mechanism through the issuance of Regulation No. 24/25/PADG/2022 (“Second Amendment”) as the second amendment to Regulation 26/2019, which has been in force since 30 December 2022.
Exporters of natural resources (sumber daya alam – “SDA”) (“Exporters”) may now place funds from their SDA special accounts (“Accounts”) into term deposits for conventional open-market operations in foreign currencies through BI (“Term Deposits”). Said placements should be carried out through commercial banks (“Banks”) that have fulfilled the requirements set by BI. Previously, Regulation 26/2019 stated that Exporters may only place their Account funds in DHE SDA deposits.
As Term Deposits have now been introduced in relation to Accounts, the Second Amendment now allows incoming funds that are deposited into DHE Accounts to derive from funds that result from the settlement and/or payment of interest from Term Deposits, as belonging to the relevant Exporters. Previously, Regulation 26/2019 stated that the above incoming funds could only derive from: 1) DHE SDA belonging to the same Exporter; 2) Funds from the disbursement of deposits and/or deposit interest payments that derived from DHE accounts belonging to the same Exporter; and/or 3) Funds from other DHE Accounts belonging to the same Exporter.
In terms of fund placements, the Second Amendment has now mandated that Banks should ensure that any funds that are placed in the above-described DHA SDA deposits and/or Term Deposits derive from DHE SDA. In this regard, Banks must place special markings (flags) in relation to the following matters: 1) Each of said instruments; and 2) Third-party fund instruments that utilize Banks for Term Deposit-based placements.
The Second Amendment has been in force since 30 December 2022.

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Previously, Bank Indonesia’s Board of Governors (“BI”) issued Regulation No. 21/26/PADG/2019 (“Regulation 26/2019”), which set the applicable mechanism for the implementation of foreign exchange export proceeds (devisa hasil ekspor – “DHE”) and foreign exchange import payments.
Furthermore, the BI Board of Governors subsequently revised this proceeds and payments mechanism through the issuance of Regulation No. 24/25/PADG/2022 (“Second Amendment”) as the second amendment to Regulation 26/2019, which has been in force since 30 December 2022.
Exporters of natural resources (sumber daya alam – “SDA”) (“Exporters”) may now place funds from their SDA special accounts (“Accounts”) into term deposits for conventional open-market operations in foreign currencies through BI (“Term Deposits”). Said placements should be carried out through commercial banks (“Banks”) that have fulfilled the requirements set by BI. Previously, Regulation 26/2019 stated that Exporters may only place their Account funds in DHE SDA deposits.
As Term Deposits have now been introduced in relation to Accounts, the Second Amendment now allows incoming funds that are deposited into DHE Accounts to derive from funds that result from the settlement and/or payment of interest from Term Deposits, as belonging to the relevant Exporters. Previously, Regulation 26/2019 stated that the above incoming funds could only derive from: 1) DHE SDA belonging to the same Exporter; 2) Funds from the disbursement of deposits and/or deposit interest payments that derived from DHE accounts belonging to the same Exporter; and/or 3) Funds from other DHE Accounts belonging to the same Exporter.
In terms of fund placements, the Second Amendment has now mandated that Banks should ensure that any funds that are placed in the above-described DHA SDA deposits and/or Term Deposits derive from DHE SDA. In this regard, Banks must place special markings (flags) in relation to the following matters: 1) Each of said instruments; and 2) Third-party fund instruments that utilize Banks for Term Deposit-based placements.
The Second Amendment has been in force since 30 December 2022.

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