Kamis, April 25, 2024

Fourth Amendment on the Implementation of Open-Market Operations

The Board of Governors of Bank Indonesia ("BI") recently issued Regulation No. 3 of 2024 on the Fourth Amendment ("Amendment") to Regulation of the BI Board of Governors No. 22/23/PADG/2020 on the Implementation of Open-Market Operations.
This Amendment introduces a number of provisions that specifically address secure Conventional Open-Market Operations (Operasi Pasar Terbuka – "OPT") and Repurchase Agreements ("Repo"). It also allows for transactions that utilize non-auction mechanisms to be conducted directly between Bank Indonesia and conventional OPT participants or via intermediary institutions.
The submission process for Conventional OPT Repo Transactions without an auction mechanism involves: 1) Participants proposing transactions to Bank Indonesia either directly or via intermediaries using the BI-ETP System or other approved methods; 2) Offers must include details of the relevant nominal values, security types and series for each transaction period; 3) Each bid must amount to at least Rp. 1 billion with subsequent increments of Rp 100 million.
Bank Indonesia is also set to introduce a non-auction Domestic Non-Deliverable Forward ("DNDF") Transaction Plan and its various changes prior to the DNDF Transaction time window on a non-auction basis being opened through the dealing system and other information facilities at the latest. This will include several types of information, specifically: 1) Transaction date; 2) Transaction participant; 3) Transaction window time; and so forth.
The non-auction DNDF Transaction Submission process involves: 1) Conventional OPT Participants, either directly or via intermediary institutions, filing DNDF Transactions with Bank Indonesia via a dealing system or other designated transaction platform; 2) Submissions must include details such as participant’s name, transaction date and foreign currency types; 3) Conventional OPT participants must place bids of at least US$ 1 million, with subsequent bids comprising multiples of US$ 1 million.

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The Board of Governors of Bank Indonesia ("BI") recently issued Regulation No. 3 of 2024 on the Fourth Amendment ("Amendment") to Regulation of the BI Board of Governors No. 22/23/PADG/2020 on the Implementation of Open-Market Operations.
This Amendment introduces a number of provisions that specifically address secure Conventional Open-Market Operations (Operasi Pasar Terbuka – "OPT") and Repurchase Agreements ("Repo"). It also allows for transactions that utilize non-auction mechanisms to be conducted directly between Bank Indonesia and conventional OPT participants or via intermediary institutions.
The submission process for Conventional OPT Repo Transactions without an auction mechanism involves: 1) Participants proposing transactions to Bank Indonesia either directly or via intermediaries using the BI-ETP System or other approved methods; 2) Offers must include details of the relevant nominal values, security types and series for each transaction period; 3) Each bid must amount to at least Rp. 1 billion with subsequent increments of Rp 100 million.
Bank Indonesia is also set to introduce a non-auction Domestic Non-Deliverable Forward ("DNDF") Transaction Plan and its various changes prior to the DNDF Transaction time window on a non-auction basis being opened through the dealing system and other information facilities at the latest. This will include several types of information, specifically: 1) Transaction date; 2) Transaction participant; 3) Transaction window time; and so forth.
The non-auction DNDF Transaction Submission process involves: 1) Conventional OPT Participants, either directly or via intermediary institutions, filing DNDF Transactions with Bank Indonesia via a dealing system or other designated transaction platform; 2) Submissions must include details such as participant’s name, transaction date and foreign currency types; 3) Conventional OPT participants must place bids of at least US$ 1 million, with subsequent bids comprising multiples of US$ 1 million.

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