Market Link Guide - Indonesia

07.06.2019

Key features

CSD link as defined under CSDR a

Yes

Type of link

Indirect via Citibank N.A., Jakarta to:

  • PT Kustodian Sentral Efek Indonesia (KSEI) -  equities and
    non-government fixed income
  • Bank Indonesia -  government fixed income

a. CSD Regulation (EU) No 909/2014 art. 2 (29)


CSD

Custodian

Name

KSEI: equities and non-government fixed income

Bank Indonesia: operator of system for government fixed income

Citibank N.A., Jakarta Branch

FATCA GIIN

Not available

NXUTG8.00000.BR.360

LEI

KSEI: Not available

Bank Indonesia: OUB893BYM4R6CVFWWL56

E57ODZWZ7FF32TWEFA76

Country of incorporation

Indonesia

USA

Account type

KSEI: Segregated account

Bank Indonesia: Omnibus account

Omnibus (equities)

Segregated (government fixed income)

Legal Account name / holder

KSEI: Securities are registered in the name of Clearstream Banking SA.

Bank Indonesia: Recorded under omnibus account of Citibank N.A. Jakarta at Bank Indonesia (Central Depository) and further under that, allocated under the name of the beneficial owner in the books of the Bank Indonesia platform.

Omnibus (equities): Clearstream Banking SA


Segregated (government fixed income): Securities are registered in the name of the account holder in the books of Citibank N.A. Jakarta.

Operational arrangements

 Yes/NoRemarks
Settlement free of paymentYesGovernment bonds: settlement against payment only, except in certain circumstances detailed in this document.
Settlement against paymentYesEligible settlement currency: Indonesian Rupiah (IDR).
Government bonds: settlement against payment only, except in certain circumstances detailed in this document.
Settlement against payment in central bank money account of CBL/CBL customerNo

CBL holds a cash account at the custodian. Against payment settlement takes place on the cash account of Citibank NA, Jakarta at Bank Indonesia.

Bridge settlementNo 
Shaping facilityNo 
Partial settlementNo 
Settlement penalty feesYesRefer to Market Profile.
Pre-matchingYes 
Back-to-back processingNo 
AllegementsYes 
Automatic compensationNoRefer to Entitlement Compensation Rules.
Registered securitiesNo 
Multi Market SecuritiesNo 
Lending and borrowingNo 
Proxy votingYes 
Investment FundsNo 
Liquidity Hub ConnectNo 
Sale and purchase of rightsNo 
Repo servicesYesCBL Internal.
Market restrictionsYesRefer to Investment Regulation.
FTTNo 
Daily reconciliationYes

Bilateral cancellation

Yes

Settlement finality

Settlement finality in KSEI and Bank Indonesia is real-time upon settlement.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 25 March 2019. The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.

No insolvency proceedings against the custodian

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

Recognition of nominee concept

Local laws and regulations do not recognise the nominee concept. CBL is recognised as the legal and beneficial owner of the securities held in the accounts.

No right of retention to the custodian

Confirmed

Segregation of assets at the custodian

Confirmed

No right of use

Confirmed

No upper-tier attachments

Local law does not prohibit upper tier attachment.

Insolvency of the custodian with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Local law does not provide for a shortfall regime.

Settlement finality in case of insolvency

Local law does not provide for a settlement finality regime.