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speculative in nature with underlying. Purchase of foreign currency against rupiah by Customers covering spot
transaction, forward transaction, and other derivative transactions. Purchase of foreign currencies against rupiah
by Foreign Parties covering outright spot transactions.
3. Derivative Transactions
Banks can conduct derivative transactions both for own interest and on behalf of customers. In derivative
transactions, Bank must perform “mark to market” and apply risk management in accordance with the
applicable regulations. Banks can only conduct derivative transactions which are a derivative of exchange rate,
interest rate, andor the combination of exchange rate and interest rate. The referred transactions may
be conducted provided that they are not structured products related to transactions of foreign currencies
against rupiah. Banks are prohibited maintaining position on derivative transactions conducted by parties related
to Banks and are prohibited providing credit facilities and or overdrafts for the needs of derivative transaction
to customers including fulfillment of margin deposits in the context of margin trading transactions. Banks are
also prohibited to conduct margin trading of foreign currencies against rupiah for their own interests or on
behalf of the Customers.
4. Commercial Paper CP
BI issues a regulation stating that CP that can be issued and traded through banking are only those issued by
non-bank companies of Indonesia, with a maximum period of 270 days and that have obtained investment
quality rating from the domestic securities rating agency currently Pefindo, i.e. Commercial Papers with the ability
level to pay back adequately at a minimum. Banks that act as issuance organizers, issuing agents, paying agents,
securities traders or financiers in the activities of CP are banks which in the context of soundness level and capital
categorized in good condition. Banks are prohibited:
a. To act as issuance organizers, issuer agents, payment
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agents or financiers on the CP issuance from: • Companies that are members of relevant bank
groups; • Companies that have deposits categorized as
Doubtful and Bad Debts non-performing loans. b. To become guarantors of CP issuance.
5. Deposits a. Demand Deposits Giro
Demand Deposits are checking accounts where the withdrawals can be done by cheques, transfer forms,
or other payment order facilities or by transfer. In the event of opening checking accounts, banks are
prohibited to accept customers whose names listed in the existing national back list.
Demand deposits in sharia banks can be based on wadi’ah or mudharabah agreements. For deposits
based on mudharabah agreement, customers must maintain minimum deposits balance set by banks
which cannot be withdrawn unless for closing the accounts. Profit sharing for demand deposits shall be
based on the lowest balance of month-end reports.
b. Time Deposits
Time deposits are deposits which withdrawal can only be done at certain time based on the
agreements between depositing customers with the banks. Commercial Banks and Rural Banks can issue
certicates on time deposits. Final income tax shall be imposed on time deposit interests.
Time deposits in sharia banks are based on mudharabah accounts with provision, among
others, banks may not reduce the profit portions of customers without the approval of the relevant
customers and cover the deposits cost with the ratio of bank profits.
c. Certificates of Deposit
Certificates of Deposit are deposits in the form of deposits which certificates are transferable.
Commercial Banks can issue Certificates of Deposit
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with conditions among others: • Can only be issued in bearer Rupiah
• Nominal value at no less than Rp 1 million • Period of no less than 30 days and no longer than
24 months • Banks must impose income tax PPh upon the
interests received by customers
d. Savings
Savings are deposits where the withdrawals can only be done based on certain agreed terms, but may
not be withdrawn by cheques, transfer forms and or other instruments equivalent. The terms of holding
savings among others: • Bank may only hold savings in Rupiah
• Setting of interest rates is given to each bank. •
Any savings interest received should be deducted by income tax PPh.
Savings in sharia banks may be based on wadi’ah or mudharabah. In wadi’ah savings, banks may not
promise to give rewards or bonuses to customers. In mudharabah savings, customers must invest certain
minimum funds which amount determined by banks and may not be withdrawn by customers with the
exception of accounts closing.
6. Trust
Trust is a business activity of Banks in the form of services in managing assets of the customers. In the said activity
there are three 3 parties involved, i.e.: i Settlors as the depositors who owns the propertiesfunds and who give
authority to manage funds to Trustees; ii Trustees in this case Banks as the party that has been given authorities
by SettlorsDepositors to manage propertiesfunds for the interests of the receiving benefits parties, i.e. the
Beneficiaries; iii Beneficiaries as the parties receiving the benefits of the Trust activity.
Trust activities cover among others: i paying agents; ii investment or funds agents either conventionally andor
based on sharia principles; iii borrowing agents; andor iv financing agents based on sharia principles.
