Indonesia: New supporting documentation requirements for domestic free of payment instructions

03.12.2021

Clearstream Banking1 informs customers that with effect from

9 December 2021

the Indonesia Central Securities Depository (PT Kustodian Sentral Efek Indonesia – KSEI) will implement new supporting documentation requirements for off-exchange transactions of equities and corporate bonds related to gifts and own account transfers.

Impact on instructions

For domestic FOP instructions related to off-exchange transactions, customers of Clearstream Banking will be required to continue to indicate the purpose of the domestic FOP instruction in field :94B::TRAD// (Sequence B) in SWIFT (Place of Trade field in Xact Web Portal or CreationOnline) as follows:

Example :94B::TRAD//OTCO

and use the relevant reason code in field :22F::SETR// (in Sequence E) for gift or own account transfers and, in addition, submit supporting documentation, per KSEI’s new requirements, indicated in the following table:

Reason
code

Xact Web Portal/CreationOnline
decode

Settlement reason  

Required supporting documentation

:22F::SETR/KSEI/GIFT

Gift

Gift, gratification or charity

1.

Settlement instruction from customer (customers do not need to submit this as this is already provided for by Clearstream Banking to the depository); and

2.

Statement from the customer indicating that he/she is the giver or receiver of the gift; and

3.

  • If the customer is a gift recipient, who is an Indonesian government official, then the customer shall submit a gratification report (https://upg.kkp.go.id/unduh/category/2-formulir-lapor-gratifikasi) directly to the Unit Pengendalian Gratifikasi (Gratification Control Unit) of Komisi Pemberantasan Korupsi (Corruption Eradication Commission) and provide a copy of such report; or
  • If the customer is a gift recipient, who is a not an Indonesian government official, then the customer shall report to his/her employer per the employer’s compliance policy. A copy of such report is not required.

:22F::SETR//OWNI or :22F::SETR//OWNE

Internal Own Account Transfer or External Own Transfer

Book-entry of securities between securities safekeeping account belonging to the same beneficial owner (NCBO) (OWNI = Internal party; OWNE = External party)

1.

Settlement instruction from the customer (customers do not need to submit this as this is already provided for by Clearstream Banking to the depository); and

2.

Additional mandatory information to be provided in field :70E::SPRO// (Settlement Processing Narrative in Xact Web Portal or CreationOnline of FOP instruction:

  • Name of beneficial owner

Customers should submit the supporting documents via email to SettlementSingapore@clearstream.com2 at the same time as their FOP instruction, before the FOP deadline. FOP instructions without the required supporting documents will not be able to settle.

Further information

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.

2. This email address is solely for the purpose of submitting the relevant supporting documents in relation to FOP instructions in Indonesia. Customers should address all other matters to Clearstream Banking Client Services.