Indonesia: Temporarily shortened cash and FX deadlines 2023 – Update
Note: This Announcement, originally published on 20 April 2023 and updated on 14 June 2023, has been further updated to reflect the announcement made by the Central Bank on the temporarily shortened cash and FX deadlines.
Clearstream Banking1 informs clients that with effect from
14 August 2023
the Central Bank (Bank Indonesia, BI) will revert to pre-pandemic cut-off times for cash payments. The cut-off times for foreign exchange (FX), however, will continue to remain on the temporarily shortened deadlines.
Consequently, Clearstream Banking’s Indonesian Rupiah (IDR) cash deadlines will be adjusted as follows during this period whilst the FX deadlines continue to remain on the temporarily shortened deadlines. Clients will be informed of any updates to these deadlines in due time.
Note: All times in this announcement are in Central European Time (CET) unless otherwise stated.
Deadlines
Deadlines effective from 2 July 2021 to 13 August 2023
Pre-advice Summer time | Withdrawal Summer time | Transfer | FX Summer time | |
RTGS=Bank Indonesia Real Time Gross Transfer System, SKN=Bank Indonesia National Clearing System, VD=Value date | ||||
Above IDR 250 billion (RTGS) | VD-1 10:00 | VD-1 10:00a | - | VD-1 09:00b |
Above IDR 100 million to IDR 250 billion (RTGS) | VD 06:30 | VD 06:30 | - | VD-1 09:00b |
Up to IDR 100 million (SKN)c | VD 06:30 | VD 06:30 | - | VD-1 09:00b |
a. IDR: Due to limited market liquidity, withdrawals in IDR with a 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. Clearstream Banking 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 winter time (VD-1) and 09:00 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, Clearstream Banking will execute the FX operation according to spot market procedures and on a “best efforts” basis.
c. IDR: When instructing for amounts under IDR 100 million, clients must include certain details as indicated under Market Link Guide - Indonesia.
Deadlines effective from 14 August 2023
Pre-advice Summer time | Withdrawal Summer time | Transfer | FXa Summer time | |
RTGS=Bank Indonesia Real Time Gross Transfer System, SKN=Bank Indonesia National Clearing System, VD=Value date | ||||
Above IDR 250 billion (RTGS) | VD-1 10:00 | VD-1 10:00b | - | VD-1 09:00c |
Above IDR 100 million to IDR 250 billion (RTGS) | VD 07:00 | VD 07:00 | - | VD-1 09:00c |
Up to IDR 100 million (SKN)d | VD 07:00 | VD 07:00 | - | VD-1 09:00c |
a. This is a temporarily shortened FX deadline.
b. IDR: Due to limited market liquidity, withdrawals in IDR with a 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 07:00 will settle with good value on a “best efforts” basis only and may therefore be delayed until the following business day.
c. Clearstream Banking 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 winter time (VD-1) and 09:00 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, Clearstream Banking will execute the FX operation according to spot market procedures and on a “best efforts” basis.
d. IDR: When instructing for amounts under IDR 100 million, clients must include certain details as indicated under Market Link Guide - Indonesia.
Impact on clients
Clients 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
Clearstream Banking will continue to monitor the situation, and will inform clients when further news is received from the market.
For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.
------------------------------------------
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 clients 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.