Indonesia: Temporarily shortened settlement and cash deadlines 2022 - Update
Note: This announcement, originally published on 1 July 2021 and updated on 3 December 2021, 1 April 2022, and 9 August 2022, has been further updated to reflect changes to the temporarily shortened settlement deadlines. Changes have been highlighted.
Clearstream Banking1 informs customers that with effect from
2 July 2021 and until further notice
the Central Securities Depository (PT Kustodian Sentral Efek Indonesia – KSEI) and Central Bank (Bank Indonesia – BI) will shorten the operating cut-off times for trading and settlement of equities and fixed income as well as cash payments.
Consequently, our settlement and Indonesian Rupiah (IDR) cash deadlines will be adjusted as follows during this period. As soon as we have new updates to these deadlines, we will notify customers again.
Note: All times in this announcement are in Central European Time (CET) unless otherwise stated.
Settlement deadlines
The temporarily shortened settlement deadlines end on 14 September 2022 and revert to the original settlement deadlines, as shown in the Settlement Timings Matrix and Market Link Guide, effective 15 September 2022.
Instruction | Current deadline as of 30 June 2021 | Temporarily shortened deadline effective 2 July 2021 until 14 September 2022 | ||
Summer time (27 March 2022 to 14 September 2022) | Winter time (31 October 2021 to 26 March 2022) | |||
Receipts | FOP | 04:55 SD | 03:55 SD | n/a |
AP | 04:55 SDa | 03:55 SDa | n/a | |
Deliveries | FOP | 04:55 SD | 03:55 SD | n/a |
AP | 04:55 SDa | 03:55 SDa | n/a | |
a. When a sale or purchase of IDR is required for securities settlement, the settlement instructions must be received by CBL not later than 11:30 on SD-2. Credit facilities in IDR are not available for foreign investors. Customers that do not require an FX transaction to cover settlement of securities transactions must fund the IDR account of Clearstream Banking with Citibank at the latest by 12:00 (Jakarta time) on SD-1. Failure to meet this deadline may incur penalties, which will be passed on to the relevant customers.
Cash deadlines
Current deadline as of 30 June 2021 | Pre-advice | Withdrawal | Transfer | FX |
Above IDR 250 billion (RTGS) | VD-1 10:00 | VD-1 10:00a | - | VD-1 11:00 |
Above IDR 100 million to IDR 250 billion (RTGS) | VD 06:30 | VD 06:30 | - | VD-1 11:00 |
Up to IDR 100 million (SKN)b | VD 06:30 | VD 06:30 | - | VD-1 11:00 |
a. IDR: Due to limited market liquidity, withdrawals of IDR with countervalue above IDR 250 billion must be instructed by VD-1 10:00. Withdrawals instructed for such amounts after the VD-1 10:00 deadline up until VD 06:30 will settle with good value on a “best efforts” basis only and may therefore be delayed until the following business day.
b. IDR: When instructing for amounts under IDR 100 million, customers must include certain details as indicated in the Market Link Guide.
Temporarily shortened deadline effective 2 July 2021 until further notice | Pre-advice | Withdrawal | Transfer | FX | |||
Summer time | Winter time (31 October 2021 to 26 March 2022 | Summer time | Winter time (31 October 2021 to 26 March 2022 | Summer time | Winter time (31 October 2021 to 26 March 2022 | ||
Above IDR 250 billion (RTGS) | No change. Remains at VD-1 10:00 | No change. Remains at VD-1 09:00 | No change. Remains at VD-1 10:00a | No change. Remains at VD-1 09:00a | - | VD-1 09:00c | VD-1 08:00c |
Above IDR 100 million to IDR 250 billion (RTGS) | VD 05:30 | VD 04:30 | VD 05:30 | VD 04:30 | - | VD-1 09:00c | VD-1 08:00c |
Up to IDR 100 million (SKN)b | VD 05:30 | VD 04:30 | VD 05:30 | VD 04:30 | - | VD-1 09:00c | VD-1 08:00c |
a. IDR: Due to limited market liquidity, withdrawals of IDR with countervalue above IDR 250 billion must be instructed by VD-1 9:00/10:00. Withdrawals instructed for such amounts after the VD-1 9:00/10:00 deadline up until VD 04:30/05:30 will settle with good value on a “best efforts” basis only and may therefore be delayed until the following business day.
b. IDR: When instructing for amounts under IDR 100 million, customers must include certain details as indicated in the Market Link Guide.
c. CBL may be forced to square the FX positions in the domestic market, therefore, the instruction deadline for the case-by-case FX service in IDR is 08:00 CET Winter (VD-1) and 09:00 CET Summer time (VD-1), subject to a threshold limit of IDR 50 billion for Buy instructions. For instructions above this threshold limit or received after the instruction deadline, CBL will execute the FX operation according to spot market procedures and on a "best efforts" basis.
Impact on customers
Customers are requested to take note of the changes and to send timely settlement and cash instructions to Clearstream Banking to avoid settlement and cash processing delays.
Further information
We will continue to monitor the situation, and will inform customers when further news is received from the market.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.