Asset servicing - Indonesia

24.09.2019

Income collection

Service offeredRemarks
Notification to customers

Standard Asset Servicing reporting via SWIFT MT56x, Xact Web Portal, CreationOnline and Xact File Transfer.

See Section 8 “Asset servicing” of the Customer Handbook.

See Connectivity manuals on the Clearstream website.

Payment of proceeds

Proceeds are calculated based on the positions recorded at the close of business on the record date and paid to the customer's account upon successful receipt and reconciliation of funds. Proceeds will be paid  with the value with which they are received. 

Funds under the Available for Cash Loan (ACL) concept, when applicable, are paid with good value.  

The payment method to be applied is reported via MT564 IPAR and Xact Web Portal IPAR.

For further details on entries qualified as ACL, please refer to the section “5.6 Financing: availability of funds” of the Customer Handbook.

Corporate actions

Service offeredRemarks
Notification to customers
Clearstream Banking advises customers of their entitlement to participate in Indonesian corporate actions (including, but not limited to, rights issues, stock splits and tender offers) subject to their availability to foreign investors.No specific deviations from standard reporting provided by CBL apply to the Indonesian market.
Instruction to CBL
Customers may instruct CBL to carry out options foreseen in the terms and conditions of the underlying type of security. These options include, but are not limited to, put options, conversions, exercises of warrants, exchanges etc.In addition, CBL informs customers, on an “as and if received” basis, of unscheduled securities events occurring on account holdings, such as rights offers, exchange offers, purchase offers etc.

CSD charges for dormant securities accounts

The Indonesian central securities depository, KSEI, will apply a penalty charge in the event that an account opened in KSEI remains dormant following a six (calendar) month/180 day period. According to KSEI’s definition, a dormant account is one that has no securities holding and has had no activity.

The Dormant Account Charge is up to IDR 1 million per dormant account, per month. The charge is calculated on a pro-rata basis depending on the number of (calendar) days in the month that the account is dormant. Therefore, the calculation method for the Dormant Account Charge is as follows:

(IDR 1,000,000/number of calendar days in month) x number of days account is dormant

For customers who open sub-accounts at CBL’s depository, to hold government bonds, the closure of the related KSEI accounts that have no securities holding and activity will be proactively initiated by CBL’s depository to avoid the Dormant Account Charge. The dormant sub-accounts at CBL’s depository, however, will continue to remain open. When these sub-accounts become active again, CBL’s depository will re-open the related KSEI accounts to accommodate settlement.

Customers may also choose to close their dormant sub-accounts at CBL’s depository by instructing Clearstream Account Admin Singapore  to do so on their behalf via SWIFT MT599, Xact Web Portal or CreationOnline free-format message. Customers will be required to settle all outstanding charges and fees upon doing so.

Proxy Voting procedures

Proxy voting services are available in CBL for this market. For details about the proxy voting services offered by CBL, please refer to the CBL Customer Handbook and, for the market specific practices, please refer to the Market Profile - Indonesia.

Entitlement compensation rules

Please refer to Entitlement Compensation Rules - Indonesia.