7. Taxation of Interest
Income in the form of interest on time deposits, savings deposits, and discounts on Bank Indonesia Certificates
SBIs w het her held by individuals or legal ent it ies, is levied a f inal income t ax of 20 of t he gross amount .
This t ax w ill not be w it hheld insof ar as t he amount of t he t ime deposit and savings deposit and SBI does not
exceed Rp 7,500,000.
8. Foreign Exchange Flow s
Follow ing the promulgation of Act Number 24 of 1999 concerning Foreign Exchange Flow s and Exchange Rate
Syst em, any person may f reely hold and use f oreign exchange. Not w it hst anding Bank Indonesia reserves
t he right t o request inf ormat ion and dat a on f oreign exchange act ivit ies. The requirem ent f or report ing
act ivit ies in f oreign exchange f low s applies t o:
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Banks
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Non-Bank Financial Inst it ut ions
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Non-Bank Financial Inst it ut ions w it h t ot al asset s or annual sales turnover of not less than Rp 100 billion
and act ively operat ing in Foreign Exchange Flow s.
9. In t e rb a n k M o n e y M a rk e t Ba se d o n Sh a ria Principles PUAS
To improve eff iciency in t he management of f unds, a money market is operat ed f or f unds based on Sharia
Principles. The Sharia Int erbank M oney M arket PUAS comprises short-term investments in Rupiahs betw een
market players, based on t he mudharabah principle. In t his act ivit y, Sharia Commercial Banks may engage
in f und placement s andor f und management , w hile convent ional Commercial Banks may engage only in
f und placement s.
10. Supervisory Act ions and Designat ion of Bank Status
a. Bank Indonesia may place a bank under Int ensive Supervision if one or more of t he f ollow ing crit eria
are met :
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rat ing is poor or unsound;
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t he bank has act ual andor pot ent ial problems based on assessment of composit e risk;
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in excess of andor violation of the Legal Lending Limit LLL;
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violat ion of t he Net Open Posit ion NOP;
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t he rat io of rupiah st at ut ory reserves is equal t o or great er t han t he st ipulat ed rat io f or bank
st at ut ory reserves, but despit e t his t he bank is experiencing f undament al liquidit y problems;
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t h e b an k h as f u n d am en t al p ro b lem s w it h prof it abilit y;
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t he bank has net problem loans 5 of t ot al credit .
b. Bank Indonesia may place a bank under Special Surveillance if one or more of t he f ollow ing crit eria
are met :
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t he Capit al Adequacy Rat io CAR of t he bank is 8 ;
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t he rat io of rupiah st at ut ory reserves is below t he prescribed rat io f or bank st at ut ory reserves
and t he bank is assessed as having f undament al liquidit y problems.
If a Bank placed under special surveillance is report ed as having syst emic impact , Bank Indonesia w ill not if y
t h e Dep o sit In su ran ce A g en cy an d req u est t h e Coordinat ing Commit t ee t o convene a meet ing t o
discuss w het her t he Bank does or does not have syst emic impact .
If a Bank under special surveillance does not have syst emic impact and meet s t he f ollow ing crit eria:
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The t ime given t o perf orm t he act ions required by BI has not expired, but t he condit ion of t he Bank
has det eriorat ed w it h t he Capit al Adequacy Rat io has f allen t o below 2 w it h lit t le prospect f or
recovery t o 8 ; or t he Bank has a rat io of st at ut ory reserves in rupiahs at less t han 0 t hat cannot be
resolved under the applicable regulatory provisions; or
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The t ime given t o perf orm t he act ions required by BI has expired, t he Capit al Adequacy Rat io is below
8 , and the condition of the Bank is not improving, Bank Indonesia w ill inf orm t he Deposit Insurance
Agency and request a decision f rom t hat agency on w het her t o rescue or not rescue t he Bank. If t he
Deposit Insurance Agency decides not to proceed w ith rescue of t he Bank, Bank Indonesia w ill revoke t he
o p er at i n g l i cen se o f t h e Ban k af t er recei vi n g not if icat ion f rom t he Deposit Insurance Agency.
11. Follow Up Action to Rural Bank under Special Surveillance