Settlement services - Indonesia

17.03.2020

Pre-matching service

The table below summarises CBL’s pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of CBL’s pre-matching services, see Pre-matching services for external settlement instructions.

Service offeredMethod employedStart (local time)
Fixed income securities
Immediate Release Flag availableManual via telephone or faxSD-1
Equities
Immediate Release Flag availableManual via telephone or fax09:00 on SD-3
Connectivity mediumInstruction format
Xact Web Portal and CreationOnlineTick to enable the “Immediate Release” option.
Xact via SWIFT and Xact File TransferField :22F::STCO/CEDE/IREL

Domestic allegement matching service

Complementary to the pre-matching services offered as described above and where no pre-matching instruction has been sent to the market, CBL accepts allegements via its depository from domestic market counterparties. It will then use these allegement messages to search for the best matching customer instruction.

If no matching customer instruction is found, the allegement is reported to the customer provided that its Clearstream Banking account number is present.

For details of CBL's domestic allegement service, see Pre-matching services for external settlement instructions.

Procedures for domestic counterparties

Procedure for the domestic counterparty

Deadline

Receipt in CBL/Delivery from CBL – excluding government bonds

Customers receiving/delivering securities from/to the Indonesian market must request their domestic counterparty to deliver/receive the securities to/from CBL sub-account with Citibank as follows:

  • Receiving/Delivering Agent: Citibank N.A., Jakarta;
  • Receiver’s/Deliverer’s custodian: CBL (BIC: CEDELULL), for/from account 8005420099;
  • Buyer/Seller: beneficiary's/ordering party's account number in CBL.

Market deadline

Receipt in CBL/Delivery from CBL – government bonds

Customers receiving/delivering securities from/to the Indonesian market must request their domestic counterparty to deliver/receive the securities to/from their sub-account with Citibank (800542xxxx) as follows:

  • Receiving/Delivering Agent: Citibank N.A., Jakarta;
  • Receiver’s/Deliverer’s custodian: CBL (BIC: CEDELULL), for/from account 800542xxxx;
  • Buyer/Seller: beneficiary's/ordering party's account number in CBL.

Market deadline

 A maximum difference in countervalue of IDR 228102 is allowed for the matching and settlement of against payment transactions with domestic counterparties.Allowed countervalue difference

Specific settlement rules/settlement restrictions

Against payment transactions with domestic counterparties in all eligible securities can be effected in IDR only.

For government bonds, settlement must be against payment. Free of payment transfers are prohibited, except for:

  • Grants;
  • Inheritances;
  • Swaps;
  • Transfers due to court decision; and
  • Transfers of assets with no change of beneficial ownership (NCBO).

Government bonds are also not eligible for internal settlement within Clearstream.

To trade and settle government bonds, the customer is required to do the following:

  • For customers planning to hold proprietary assets: Submit the relevant DGT form (attached below). The name used on the DGT form will be the name used for the sub-account. This should be the name of the ultimate beneficial owner. (The DGT form is not required for customers not planning to hold proprietary assets but acting as a nominee, agent or conduit company).
  • Open a sub-account at Citibank Jakarta via Clearstream by submitting a SWIFT MT599 free-format message to Clearstream with the following details:
    Attn: Clearstream Account Admin Singapore
    Please take this MT599 as our request to open a new sub-account for government bonds only at Citibank N.A., Jakarta under Clearstream Banking S.A. (base: 800542). Please do not open account at KSEI.
    Full Account Name: (the name of the ultimate beneficial owner as entered on the DGT form submitted, or - if no DGT form is submitted - then the name of the customer who is acting as a nominee, agent or conduit company).
    Short Account Name: (if the Full Account Name is more than 35 characters, then a shorter alternative of up to 35 characters must be included here).
    Tax ID: (the relevant Tax Payer Code (4-digit number) - see attachment below).
    Cash Account Number: 0-800542-014.
    Legal Domicile: (the relevant National ISO Code - see attachment below).
    Business Registration Number:
    Date of Establishment: (as indicated in the Business Registration).
    Place of Establishment:
    Registered Business Address:
    Type of Business: (the relevant Business Type Code - see attachment below).
    Business principle: (if Type of Business is a financial institution, insurance, a mutual fund, a pension fund or a securities company, kindly indicate whether: sharia or conventional).
    Client Type: Indirect Client.
    Source of Fund: (used for settlement on this sub-account - one of: Business Profit, Interest, Pension Funds, Lottery, Proceed from Investment, Deposit, Capital, Loan, Other (please specify)).
    Assets Ownership: (code: 1=Myself or 2=Representing Other Party).
  • In addition to the MT599 above, customers are also required to submit a copy of the Business Registration document (document that is commonly used as business registration document in the customer's home country), that shows the Business Registration Number and Date of Establishment used in the MT599 above, by email to: SGAccount@clearstream.com.

    Note: This email address is solely for the purpose of submitting the Business Registration document in relation to the new sub-account opening. Customers should address all other matters to Clearstream Banking Client Services.
  • Indicate in the narrative of settlement instructions (Settlement Processing Narrative in CreationOnline; :70E::SPRO// in Xact via SWIFT and Xact File Transfer) the ordering party's (on deliveries) or beneficiary's (on receipts) sub-account at CBL's depository. Please refer to the relevant instruction specifications for the requirements.

"Purpose of settlement" requirement

The KSEI requires that domestic free of payment (FOP) instructions related to equities and corporate debt instruments indicate the purpose of the settlement.

Customers are therefore required 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:

  • If the domestic FOP instruction is related to an on-exchange transaction (that is, if the transaction involves a local broker): EXCH/XIDX
    Example: :94B::TRAD//EXCH/XIDX

In the case of on-exchange domestic FOP transactions, the customer must include the internal reference number or exchange trading number in field :20C::TRRF// (in Sequence A1).

Example: :20C::TRRF//123456789

  • If the domestic FOP instruction is related to an off-exchange transaction: OTCO
    Example: :94B::TRAD//OTCO

In the case of off-exchange domestic FOP transactions, the customer must provide the relevant reason code in field :22F::SETR// (in Sequence E).

Examples:  :22F::SETR//TRAD                :22F::SETR/KSEI/VERD

Additionally, in the case of off-exchange domestic FOP transactions where the relevant reason code requires the submission of additional supporting documentation, the customer is recommended to submit such supporting documents via email to SettlementSingapore@clearstream.com 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.

N.B.: This email address is solely for the purpose of submitting the relevant supporting documents in relation to FOP instructions in Indonesia. All communications received at this email address on other matters will not be replied to or forwarded; customers should address such other matters to Clearstream Banking Client Services.

Bridge settlement

IDR is not a Bridge-eligible settlement currency. All Indonesian securities are not Bridge-eligible.

Management of failed instructions

Settlement instructions with domestic counterparties not settled on requested settlement date (SD) are not automatically cancelled. Customers who wish to cancel such instructions will have to send in a cancellation to do so. Otherwise, the depository shall automatically cancel the instruction which remains unmatched at the end of the 30th business day after the first attempted settlement date.