Indonesia: New settlement reasons for domestic free of payment instructions


Further to our announcement A14143 dated 14 November 2014, the Indonesia Central Securities Depository (PT Kustodian Sentral Efek Indonesia – KSEI) issued a regulation to implement new requirements for domestic FOP instructions related to off-exchange transactions of equities and corporate bonds. This regulation has been applicable since

1 January 2016

and adds two new settlement reasons, one for repo and one for conversion.

Impact on instructions

For domestic FOP instructions related to off-exchange transactions, customers of Clearstream Banking1 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 CreationOnline) as follows:

Example :94B::TRAD//OTCO

and use the relevant reason code in field :22F::SETR// (in Sequence E) for repo or conversion and, in addition, submit supporting documentation as indicated in the following table:

:22F::SETR//REPU or :22F::SETR//RVPO

Repo or Reverse Repo

Repo transaction

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

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

(i) Repo contract number;

(ii) Repo agent indicator;

(iii) Repo agent name; and

3.Copy of Repo Agreement as per GMRA Indonesia, as required by OJK regulation No. 9/POJK.04/2015 and OJK circular letter No. 33/SEOJK.04/2015.




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).
2.Written confirmation on securities conversion from related party.

Customers are to submit the supporting documents for Repo or Conversion 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.

Customers are also reminded to provide the additional mandatory information listed above for repo transactions in field :70E::SPRO// in SWIFT (Settlement Processing Narrative field in CreationOnline) of their FOP instructions.

For adjustments to maturity date of repo transactions, the FOP deadline is two days before the maturity date of the repo transaction at 15:55 SD-2 Jakarta Time.

Further information

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF), and 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 (CBL).
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.