Market Link Guide - Indonesia

02.06.2020

Key features

CSD link as defined under CSDRa

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, Article 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 payment

Yes

Government bonds: settlement against payment only, except in certain circumstances detailed in this document.

Settlement against payment

Yes

Eligible 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 customer

No

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 settlement

No

 
Shaping facility

No

 
Partial settlement

No

 
Settlement penalty fees

Yes

Refer to Market Profile.
Pre-matching

Yes

 
Back-to-back processing

No

 
Allegements

Yes

 
Automatic compensation

No

Refer to Entitlement Compensation Rules.
Registered securities

No

 
Multi Market Securities

No

 
Lending and borrowing

No

 
Proxy voting

Yes

 
Investment Funds

No

 
Liquidity Hub Connect

No

 
Sale and purchase of rights

No

 
Repo services

Yes

CBL Internal.

Market restrictions

Yes

Refer to Investment Regulation.
FTT

No

 
Daily reconciliation

Yes

 

Moment of entry

Bank Indonesia: entry of settlement instructions into BI-SSSS by the participant

KSEI: approval of transfer orders by the participant in KSEI's settlement system (C-BEST Next Generation).

Irrevocability

Bank Indonesia: settlement instructions can be revoked either unilaterally if the counterparty has not yet sent the settlement instruction into BI-SSSS or bilaterally if settlement instructions have entered into BI-SSSS but are not yet settled.

KSEI: settled transfer orders are irrevocable.

Settlement finality

Bank Indonesia: settled instructions which can no longer be cancelled nor revoked are final.

KSEI: settled instructions which can no longer be cancelled nor revoked are final.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 26 February 2020. 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.