Unofficial translation No. 4/ 11 /DASP Jakarta, August 13, 2002 CIRCULAR LETTER

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1 Unofficial translation No. 4/ 11 /DASP Jakarta, August 13, 2002 CIRCULAR LETTER Subject : Operation of Demand Deposit Accounts at Bank Indonesia by External Parties Pursuant to Bank Indonesia Regulation (PBI) Number 2/24/PBI/2000 dated November 17, 2000, concerning Operation of Demand Deposit Accounts at Bank Indonesia by External Parties as amended by Bank Indonesia Regulation Number 3/11/PBI/2001 dated June 20, 2001, among others it is stipulated that to expedite payment transactions between banks, the government, and other parties as determined by Bank Indonesia, Bank Indonesia shall provide these parties with the facility of opening of Demand Deposit Accounts. Following the promulgation of this Bank Indonesia Regulation, the provisions stipulated therein apply to all matters pertaining to the operation of Demand Deposit Accounts at Bank Indonesia, both for Rupiah Accounts or Foreign Currency Accounts operated by the above-mentioned parties. In regard to the foregoing, it is necessary to stipulate further procedures and processes concerning the operation of Demand Deposit Accounts at Bank Indonesia by external parties as follows. I. GENERAL PROVISIONS 1. The parties eligible to open a Demand Deposit Account at Bank Indonesia are: a. Banks; b. Government agencies; c. International financial institutions; d. Other

2 2 d. Other agencies that in the opinion of Bank Indonesia require a Demand Deposit at Bank Indonesia. 2. Any party eligible to open a Demand Deposit Account at Bank Indonesia as referred to in number 1 may also open a special Account, including but not limited to Escrow Account and Blocked Account. 3. Banks are eligible to open Demand Deposit Accounts at Bank Indonesia for the levels of head office and branch office. If the Demand Deposit Accounts of the Bank are centralized, only the head office of the Bank may open a Demand Deposit Account at Bank Indonesia. In the case of Banks conducting activities as conventional Banks and sharia Banks, the conventional operations unit and sharia operations unit may open their respective Demand Deposit Accounts, comprising both Rupiah Accounts and Foreign Currency Accounts. 4. Government agencies include the central government and regional governments insofar as the Demand Deposit Account concerned is used to hold and/or manage funds pertaining to the implementation of the State Budget and Regional Budget. Central government agencies consist of line ministries, statutory agencies, and State Owned Enterprises. This definition of government agency does not include routine treasurers and project treasurers. 5. International financial institutions are institutions established for the purpose of strengthening international economic and/or financial cooperation in which the Government of Indonesia or Bank Indonesia is a member, or comprising financial institutions that have extended financial assistance to the Government of Indonesia or Bank Indonesia and these institutions require the opening of an account at Bank Indonesia. For the time being, these international financial institutions include but are not limited to the International Monetary Fund (IMF), Asian Development Bank

3 3 Bank (ADB), International Bank for Restructuring Development (IBRD), and International Development Agency (IDA). 6. Other agencies may open Demand Deposit Accounts at Bank Indonesia subject to the following: a. The Demand Deposit Account is needed within the framework of transition of Bank Indonesia s duties in banking and in credit as referred to in Article 74 of Act Number 23 of 1999 concerning Bank Indonesia. Agencies pertaining to Bank Indonesia s duties in banking include but are not limited to the Indonesian Bank Restructuring Agency (IBRA); b. The Demand Deposit Account pertains to the duties of Bank Indonesia in monetary affairs, banking, and the payment system. These agencies include but are not limited to clearing operators other than commercial banks, switching operators, savings and loans institutions, and government agencies other than as referred to in number Account Holders are as follows: a. At the Bank Indonesia Head Office, in the case of Rupiah Accounts and Foreign Currency Accounts, including but not limited to: 1) Head office, sharia operations unit, and branch office of foreign Bank, existing in the Jakarta clearing area; 2) Branch office of Bank with head office in the clearing area of a Bank Indonesia Regional Office; 3) Central government agency and regional government agency; 4) International financial institution; 5) Other agency that in the opinion of Bank Indonesia requires a Demand Deposit Account at Bank Indonesia. b. At Bank Indonesia Regional Offices, in the case of Rupiah Accounts, including but not limited to: 1) Bank

4 4 1) Bank head office, sharia operations unit, and branch office and subbranch office of foreign Bank existing in the Bank Indonesian Regional Office clearing area, except in the case of a Bank Indonesia Regional Office using the Bank Indonesia Real Time Gross Settlement (BI-RTGS) System; 2) Regional government agency in the area of the Bank Indonesia Regional Office. 8. A Demand Deposit Account at Bank Indonesia may not be opened in the form of joint account. Joint account is defined as an account held by more than 1 (one) party, for example, jointly by the Directorate General of Budgetary Affairs and the Directorate General of Financial Institutions at the Ministry of Finance. 9. Bank Indonesia shall not pay any interest on balances of Demand Deposit Accounts operated at Bank Indonesia. II. ACCOUNT OPENING PROCEDURE A. Application for Opening Account 1. The Board of Directors of the Bank or authorized officer shall submit a written application for opening a Demand Deposit Account in accordance with the sample form presented in Appendices 1.a and 1.b to: a. Rupiah Transaction Settlement Division (PTR) Directorate of Accounting and Payment System (DASP), Bank Indonesia, Jalan M.H. Thamrin No. 2, Jakarta 10010, for opening of a Rupiah Account; b. Foreign Currency Accounting Division (AkDv) Directorate of Accounting and Payment Systems (DASP), Bank Indonesia, Jalan M.H. Thamrin No. 2, Jakarta 10010, for opening of a Foreign Currency Account; c. Bank Indonesia Regional Office, for opening of a Rupiah Account at the Bank Indonesia Regional Office. 2. Application

5 5 2. Application for opening of a special Account shall be submitted first to the unit pertaining to the Account Holder. The unit shall thereafter forward the application for Account opening to the Directorate of Accounting and Payment System (DASP), with a copy to the Rupiah Transaction Settlement Division (PTR) DASP, for opening of a Rupiah Account, or the Foreign Currency Accounting Division (AkDv) DASP, for opening of a Foreign Currency Account, Bank Indonesia, Jl. M.H. Thamrin No. 2, Jakarta For example, application for opening a Demand Deposit account to be used for holding and disbursing foreign borrowings shall be submitted to the Directorate of International Affairs, Bank Indonesia. 3. Application for opening of Demand Deposit Account, whether Rupiah Account or Foreign Currency Account as referred to in numbers 1 and 2, shall be submitted subject to the following provisions: a. For a Bank, enclosing the following: 1) Photocopies of documents certified as authentic copies by the Board of Directors or an authorized officer, comprising: a) Deed of incorporation of legal entity, setting forth the articles of association and amendments thereto, validated by the competent agency, including deed of incorporation of foreign legal entity in accordance with prevailing regulations in the country of origin of that legal entity; b) License issued by competent agency for establishment of the head office and branch offices of the Bank; c) Decree issued by competent agency in banking concerning upgrading of Bank status to foreign exchange bank in the specific case of application for opening of Foreign Currency account submitted by a Bank domiciled within Indonesia; d) Power

6 6 d) Power-of-attorney issued by the head office of a foreign Bank to a Bank officer and approved by Bank Indonesia (for branch office of foreign Bank), enclosing an official translation into the Indonesian language; e) Decree of the Governor of Bank Indonesia/competent agency concerning issuance of the operating license of the Bank. 2) Photocopies of the following documents, not certified as authentic copies: a) Identity of the Board of Directors, comprising Identity Card (KTP), Drivers License (SIM), or passport, Temporary Residence Card (KITAS), and Permit issued by the Ministry of Manpower for any Foreign Nationals; b) Taxpayer s Identity Number (NPWP) in the name of the Bank. b. For a government agency, enclosing the following: Photocopies of the following documents: 1) Decree by Minister or authorized officer for appointment of the officer authorized to conduct activities pertaining to the operation of a Demand Deposit Account with Bank Indonesia; 2) Loan Agreement for opening of a Demand Deposit Account within the framework of foreign borrowings. c. For international financial institutions, enclosing the following: Photocopies of the following documents: 1) Letter of reference or appointment for members of management and authorized representatives; 2) Telex

7 7 2) Telex code of the international financial institution concerned, used as a means for conducting activities pertaining to operation of the Demand Deposit Account; 3) Specimen Signatures of officers and persons authorized to act on their behalf for signing of documents and withdrawal from Demand Deposit Account, if required. d. For other agency that in the opinion of Bank Indonesia requires a Demand Deposit at Bank Indonesia, enclosing the following: 1) Photocopies of the following documents, certified as authentic copies by the Board of Directors or an authorized officer: a) Legal basis for establishment of the other agency; b) Letter of reference or appointment for members of management and persons acting on their behalf; 2) Photocopies of the following documents, not certified as authentic copies: a) Identity comprising Identity Card (KTP) or passport, Temporary Residence Card (KITAS), and Permit issued by the Ministry of Manpower for any Foreign Nationals on the Board of Directors or employed as authorized officers for conducting activities pertaining to the operation of the Demand Deposit Account at Bank Indonesia; b) Taxpayer s Identity Number (NPWP) in the name of the other agency. The originals of documents as referred to in letter a, letter b (if required), and letter d shall be shown to the Bank Indonesia officer at the time of submission of the photocopies of these documents. B. Approval

8 8 B. Approval or Rejection of Application for Account Opening 1. Bank Indonesia shall approve the application for opening of a Demand Deposit Account if the application has provided the required documentation in accordance with the provisions referred to in letter A Bank Indonesia shall reject an application for opening a Demand Deposit Account if the applicant: a. does not meet the requirements set forth in the provisions referred to in letter A.3.; or b. has an existing account at Bank Indonesia and the account entries to be made through the accounts of the party concerned can be accommodated in the existing account. 3. Bank Indonesia shall inform the applicant in writing of approval or rejection of the application for opening of Demand Deposit Account, including reasons for the decision. 4. In an emergency, Bank Indonesia may open a Demand Deposit Account on behalf of an applicant before the applicant has provided the required documents as referred to in letter A.3. insofar as in the opinion of Bank Indonesia, the applicant fulfils the criteria for a party eligible to hold a Demand Deposit Account at Bank Indonesia. 5. The following shall take place on the basis of approval from Bank Indonesia of the application for opening a Demand Deposit Account: a. For Banks: 1) The Account Holder shall sign a letter of confirmation bearing sufficient revenue stamp, stating that the Account Holder is informed of and is subject to the Bank Indonesia provisions for Operation

9 9 Operation of Demand Deposit Accounts at Bank Indonesia by External Parties. 2) The Account Holder shall provide: a) Notification of Preparation of Specimen Signature in accordance with the sample in Appendix 2 for the Board of Directors of the Bank or the authorized officer (for office of a foreign Bank) and authorized representatives for signing of documents and/or withdrawal from the Demand Deposit Account; b) Originals of the following documents: (1) Power-of-Attorney for Withdrawal by Bank Indonesia Check (BI Check) and/or Bank Indonesia Bilyet Giro (BI BG); (2) Power-of-Attorney for Collection of BI Checkbooks and BI BG Books; (3) Power-of-Attorney for Collection of Account Statements; (4) Power-of-Attorney for Handover of member Authenticator Text (AT) and Collection of operator AT (if required); Specimens of the documents referred to in letter b) number (1) through number (4) are presented in Appendices 3.a, 3.b, 3.c., and 3.d. c) Specimen seal used in conducting activities in the operation of the Demand Deposit Account at Bank Indonesia for any Bank requiring the imprinting of a seal on payment instruments. In the case of a Bank not requiring such seal, the Bank shall provide a statement to Bank Indonesia, declaring

10 10 declaring that the payment instruments do not require the imprint of a seal; d) Photocopies of documents certified as authentic copies by an authorized officer, comprising: (1) Letter of appointment of Bank officers/branch management issued by the Bank head office; (2) Letter of decision from the competent agency in banking for any Bank officer whose appointment requires the approval of that agency. e) Photocopy of identity card, comprising Identity Card (KTP), Drivers License (SIM), or passport, Temporary Residence Card (KITAS), and Permit issued by the Ministry of Manpower for any Foreign Nationals employed as officers and staff authorized to conduct activities pertaining to the operation of Demand Deposit Account by External Parties at Bank Indonesia. b. For government agencies 1) The Account Holder shall sign a letter of confirmation bearing sufficient revenue stamp, stating that the Account Holder is informed of and is subject to the Bank Indonesia provisions for Operation of Demand Deposit Accounts at Bank Indonesia by External Parties. 2) The Account Holder shall provide: a) Notification of Preparation of Specimen Signature in accordance with the sample in Appendix 2 for the authorized officers and authorized representatives for signing of documents and/or Account withdrawal; b) Originals of the following documents: (1) Power

11 11 (1) Power-of-Attorney/Decree/Letter from Minister/ competent Official for appointment of authorized officer for conducting withdrawal by means of BI Check and/or BI BG; (2) Power-of-Attorney for Collection of BI Checkbooks and BI BG Books; (3) Power-of-Attorney for Collection of Account Statements. Specimens of the letters referred to in letter b) number (1) through number (3) are presented in Appendices 3.a, 3.b, and 3.c. c) Specimen seal used in conducting activities in the operation of the Demand Deposit Account at Bank Indonesia, if the imprinting of a seal is required on payment instruments. However, if such seal is not required, a statement shall be provided for Bank Indonesia, declaring that the payment instruments do not require the imprint of a seal. c. For international financial institutions: The Account Holder shall sign a letter of confirmation bearing sufficient revenue stamp, stating that the Account Holder is informed of and is subject to the Bank Indonesia provisions concerning Operation of Demand Deposit Accounts at Bank Indonesia by External Parties, if required. d. Other agency that in the opinion of Bank Indonesia requires a Demand Deposit at Bank Indonesia: 1) The Account Holder shall sign a letter of confirmation according to the example in Appendix 2, bearing sufficient revenue stamp, stating that the Account Holder is informed of and is subject to the Bank Indonesia provisions concerning Operation

12 12 Operation of Demand Deposit Accounts at Bank Indonesia by External Parties. 2) The Account Holder shall provide: a) Notification of Preparation of Specimen Signature in accordance with the sample in Appendix 2 for the authorized officers and authorized representatives for signing of documents and/or Account withdrawals; b) Originals of the following documents: (1) Power-of-Attorney for Withdrawal by BI Check and/or BI BG; (2) Power-of-Attorney for Collection of BI Checkbooks and BI BG Books; (3) Power-of-Attorney for Collection of Account Statements; Specimens of the documents referred to in letter b) number (1) through number (3) are presented in Appendices 3.a, 3.b, and 3.c. In the event that other agency that in the opinion of Bank Indonesia requires a Demand Deposit Account at Bank Indonesia is a government agency, Power-of-Attorney as referred to in letter b) number (1) through number (3) may comprise a Decree/Letter of the Minister/competent Official for the appointment of the authorized officer for withdrawal of funds. c) Specimen seal used in conducting activities in the operation of the Demand Deposit Account at Bank Indonesia, if the imprinting of a seal is required on payment instruments. However, if such seal is not required, a statement shall be provided for Bank Indonesia, declaring that

13 13 that the payment instruments do not require the imprint of a seal. An example of the letter of confirmation as referred to in number 5 letter a through letter d is presented in Appendix 4. III. SPECIMEN SIGNATURES A. Provision of Specimen Signatures 1. The following parties are required to provide Specimen Signatures at Bank Indonesia: a. Account Holder, represented by the Board of Directors of a Bank or authorized officer of a government agency, international financial institution, or other agency; b. Authorized representative of the Account Holder with authorization to conduct more than 1 (one) withdrawal; c. Authorized representative of the party empowered with right of substitution by the Account Holder, when conducting more than 1 (one) withdrawal. In the case of a party withdrawing from a Demand Deposit Account and empowered with authorization to conduct only 1 (one) withdrawal, preparation of a Specimen Signature at Bank Indonesia shall not be required. 2. The parties preparing Specimen Signatures as referred to in letter A.1 shall be required to prepare 3 (three) Specimen Signatures each on each designated form provided by Bank Indonesia, made in 2 (two) or 3 (three) copies as may be needed by the respective Bank Indonesia office. 3. For Banks, the preparation of Specimen Signatures as referred to in number 1 shall be conducted in the presence of a Bank Indonesia officer. 4. For international

14 14 4. For international financial institutions, the Specimen Signatures shall be provided at the same time as the application for opening of Demand Deposit Account. 5. The number of parties conducting Account withdrawals that shall be required to prepare Specimen Signatures at Bank Indonesia and to be approved by Bank Indonesia shall be stipulated by Bank Indonesia, taking into account the needs of the Account Holder. 6. An Account Holder having more than 1 (one) Demand Deposit Account shall have Specimen Signatures for each of the Demand Deposit Accounts; for example, if the Ministry of Finance has more than 1 (one) account for different projects, there must be Specimen Signatures for each of these accounts. 7. In the event of any discrepancy between the name on the identity card and the name on the required documents and/or difference between the signature on the identity card and the Specimen Signature, the party concerned shall be required to prepare a written statement signed over sufficient revenue stamp and witnessed by an authorized officer having a Specimen Signature at Bank Indonesia. B. Amendments to Data of Specimen Signatures 1. Amendment to data of Specimen Signatures shall be made by reason of change in signature and/or authority of the same officer. 2. The Account Holder shall be required to inform Bank Indonesia in writing of any change in data of Specimen Signatures. 3. In the event of any change in signature of the same officer, the officer concerned shall prepare a new Specimen Signature in accordance with the provisions referred to in letter A. 4. If the Account Holder does not provide notification of change in Specimen Signature as referred to in number 2, the existing data shall be deemed to remain valid. C. Revocation

15 15 C. Revocation of Specimen Signature 1. Specimen Signatures shall be revoked by reason of revocation of authority from a party having a Specimen Signature. 2. The Account Holder or previous party granting authority shall provide Bank Indonesia with written notification of revocation of authority as referred to in number In the event that an Account Holder does not provide notification of revocation of authority as referred to in number 2, the existing Specimen Signature shall be deemed to remain valid. 4. Revocation of authority shall be effective from the specified date in the notification of revocation of Specimen Signature. In the event that the letter of notification is received after the specified date, the effective date for revocation of authority shall be the date on which the letter was received by Bank Indonesia. IV. ACCOUNT DEPOSITS A. Provisions concerning Account Deposits 1. Account Deposit is any addition of funds and/or credit made to a Demand Deposit Account. 2. Account Deposit shall be conducted as follows: a. Rupiah Account Deposit shall be conducted in cash or by book entry or transfer. In this matter, transfer is defined as including inter-office transactions and clearing; b. Foreign Currency Account Deposit shall be conducted by book entry or transfer. 3. Rupiah Account Deposit and Foreign Currency Account Deposit may be made by the Account Holder or by non-account Holders. B. Procedure

16 16 B. Procedure for Rupiah Account Deposit 1. Deposit into Account held by Bank a. Deposit through BI-RTGS System Deposit through the BI-RTGS System shall be made in accordance with the procedures stipulated in the Circular Letter of Bank Indonesia concerning the Bank Indonesia Real Time Gross Settlement System. b. Deposit not through the BI-RTGS System 1) Cash deposit shall be made using the BI-405 Cash Deposit/Clearing/Book Entry Transfer Slip (BIASA) in person at the Cash Unit at Bank Indonesia in accordance with the prevailing regulations concerning circulation of money; 2) Book entry deposit shall be made by means of BI BG or the BI- 405 Cash Deposit/Clearing/Book Entry Slip (BIASA) accompanied by a Check or Bilyet Giro (BG) received by the Account Holder from another Bank; 3) Deposit by means of transfer shall be made using BI BGs and by using SWIFT or telex. 2. Deposit into Account held by government agency a. Deposit through BI-RTGS System Deposit through the BI-RTGS System shall be made in accordance with the procedures stipulated in the Circular Letter of Bank Indonesia concerning the Bank Indonesia Real Time Gross Settlement System. b. Deposit not through the BI-RTGS System 1) Cash deposit shall be made using the BI-405 Cash Deposit/Clearing/Book Entry Transfer Slip (BIASA) in person at the Cash Unit at Bank Indonesia in accordance with the prevailing regulations concerning circulation of money; 2) Book

17 17 2) Book entry Deposit shall be made by means of a BI BG or the BI-405 Cash Deposit/Clearing/Book Entry Slip (BIASA) accompanied by a Check or BG received by the Account Holder from a Bank; 3) Deposit by transfer shall be conducted using a BG BI or Bank Indonesia standard internal slip to which is attached a letter requesting the transfer; 3. Deposit into Account held by international financial institution a. Deposit through BI-RTGS System Deposit through the BI-RTGS System shall be made in accordance with the procedures stipulated in the Circular Letter of Bank Indonesia concerning the Bank Indonesia Real Time Gross Settlement System. b. Deposit not through the BI-RTGS System 1) Cash deposit shall be made using the BI-405 Cash Deposit/Clearing/Book Entry Transfer Slip (BIASA) in person at the Cash Unit at Bank Indonesia in accordance with the prevailing regulations concerning circulation of money; 2) Book entry Deposit shall be made by means of a BI BG or the BI-405 Cash Deposit/Clearing/Book Entry Slip (BIASA) accompanied by a Check or BG received from a Bank; 3) Deposit by means of transfer shall be conducted using: a) BI BG; b) Bank Indonesia standard internal slip prepared by the unit pertaining to the international financial institution Account Holder, based on a telex or letter requesting transfer from the Account Holder; c) Payment Order (SPM) if conducted by the Ministry of Finance. 4. Deposit

18 18 4. Deposit into Account held by other agency that in the opinion of Bank Indonesia requires a Demand Deposit at Bank Indonesia. a. Deposit through the BI-RTGS System Deposit through the BI-RTGS System shall be made in accordance with the procedures stipulated in the Circular Letter of Bank Indonesia concerning the Bank Indonesia Real Time Gross Settlement System. b. Deposit not through the BI-RTGS System 1) Cash deposit shall be made using the BI-405 Cash Deposit/Clearing/Book Entry Transfer Slip (BIASA) in person at the Cash Unit at Bank Indonesia in accordance with the prevailing regulations concerning circulation of money; 2) Book entry Deposit shall be made by means of a BI BG or the BI-405 Cash Deposit/Clearing/Book Entry Slip (BIASA) accompanied by a Check or BG received from a Bank; 3) Deposit by transfer shall be conducted using a BG BI or Bank Indonesia standard internal slip to which is attached a letter requesting the transfer, if required. C. Foreign Currency Account Deposit Procedure 1. Deposit through the BI-RTGS System Deposit through the BI-RTGS System shall be made in accordance with the procedures stipulated in the Circular Letter of Bank Indonesia concerning the Bank Indonesia Real Time Gross Settlement System. 2. Deposit not through the BI-RTGS System a. Book entry deposit shall be made using the Foreign Currency Account facilities of SWIFT or Bank Indonesia standard internal slip prepared by the unit pertaining to the Account Holder, as stated on a telex or letter requesting transfer from the Account Holder. In the case

19 19 the case of obligo accounts, book entry shall be conducted using a Bank Demand Deposit Account Payment Order (SPMGB). b. Deposit by transfer shall be made using SWIFT or Bank Indonesia standard internal slip prepared by the unit pertaining to the Account Holder, based on a telex from the Account Holder. V. ACCOUNT WITHDRAWAL A. Terms and Conditions of Withdrawal 1. Account withdrawal may be conducted by the Account Holder or parties given authorization by the Account Holder, whether with right of substitution or without right of substitution. 2. The Account Holder shall bear responsibility for any improper use of instruments for Account withdrawal. 3. Bank Indonesia shall bear responsibility for accuracy of bookkeeping of transactions in accordance with orders for Account withdrawal. 4. Authorization as referred to in number 1 may be issued for 1 (one) withdrawal or more than 1 (one) withdrawal. In the event that authorization is provided for more than 1 (one) withdrawal, the authorized representative or authorized representative by substitution shall not be required to prepare a Specimen Signature at Bank Indonesia. In the even that authorization is provided for more than 1 (one) withdrawal, the authorized representative or authorized representative by substitution shall be required to prepare a Specimen Signature at Bank Indonesia. 5. The Power-of-Attorney provided by the Account Holder shall be presumed to remain valid as long as no official notification in writing has been received by the Rupiah Transaction Settlement Division, Foreign Currency Accounting Division, or Bank Indonesia Regional Office concerning amendment or revocation of the Power-of-Attorney. 6. The Account

20 20 6. The Account Holder may require that each Account withdrawal by means of book entry slip must be signed by more than 1 (one) person. 7. In the event that Account withdrawal is conducted by means of Book Entry Slip, Bank Indonesia shall verify the signature on the Book Entry Slip against the Specimen Signature provided by the Account Holder to Bank Indonesia. 8. In the event that Account withdrawal is conducted by electronic means, Bank Indonesia will not verify any signature as referred to in number 7, but verification will be made by other means stipulated in a separate Circular Letter of Bank Indonesia. 9. In the case of any requirement that withdrawal from a special Account must be approved by a particular agency, the official of that agency shall provide a Specimen Signature. 10. Any additional requirements for conducting Account withdrawal must be conveyed to Bank Indonesia at the time of application for Account opening. 11. Bank Indonesia shall not be responsible for the fulfillment of any additional requirements stipulated by the Account Holder for conducting Account withdrawal, except in the case of a special Account. B. Withdrawal Procedure for Rupiah Account 1. Withdrawal from Account held by Bank The means used for withdrawal from Rupiah Accounts are BI Checks, BI BGs, electronic means, or other means subject to the following provisions: a. BI Checks The following provisions apply to the use of BI Checks: 1) BI Checks

21 21 1) BI Checks shall be completed in full in accordance with the formal provisions for checks stipulated in the Commercial Code (KUHD); 2) BI Checks may only be cashed if completed in full in accordance with the formal provisions for checks at the time of presentation to the Cash Unit at Bank Indonesia; 3) Prior to using a BI Check from a BI Checkbook, the Account Holder shall hand over to Bank Indonesia the first leaf of the BI Checkbook, signed by the Account Holder or authorized representative having a Specimen Signature at Bank Indonesia. The first leaf of the BI Checkbook is evidence that the Account Holder has received 1 (one) BI Checkbook with the number of Checks and serial numbers as stated in the BI Checkbook. 4) If the Account Holder does not hand over the first leaf of the BI Checkbook as referred to in number 3), the BI Checks may not be used for Account withdrawal; 5) Account withdrawal by means of BI Check shall take place during the cash service operating hours stipulated by Bank Indonesia. b. BI BGs The following provisions apply to the use of BI BGs: 1) BI BGs shall be completed in accordance with the applicable formal provisions for BI BGs. 2) BI BGs may only be processed if completed in full in accordance with the formal provisions for BI BGs at the time of presentation to Bank Indonesia or the beneficiary for subsequent deposit with the Bank Indonesia Accounting Unit; 3) Account withdrawal by means of BI BG may be made only in favor of 1 (one) beneficiary; 4) Prior

22 22 4) Prior to using a BI BG from a BI BG Book, the Account Holder shall hand over to Bank Indonesia the first leaf of the BI BG Book, signed by the Account Holder or authorized representative having a Specimen Signature at Bank Indonesia. The first leaf of the BI BG Book is evidence that the Account Holder has received 1 (one) BI BG Book with the number of Checks and serial numbers as stated in the BI BG Book; 5) If the Account Holder does not hand over the first leaf of the BI BG Book as referred to in number 4), the BI BGs may not be used for Account withdrawal; 6) Withdrawal from Account by means of BI BG shall take place according to the service hours of the accounting counter stipulated by Bank Indonesia. c. Electronic Means The following provisions apply to the use of electronic means: 1) Withdrawal by electronic means may only be conducted by parties that are members of an electronic-based system stipulated by Bank Indonesia; 2) Procedures for the use of electronic means are stipulated separately in the regulations concerning electronic systems. d. Other Means Other means of Account withdrawal include but are not limited to telex or telephone, using a secret code, accompanied by facsimile bearing the secret code used by a local clearing Bank in a location without a Bank Indonesia Regional Office as a basis for bookkeeping entry of clearing results. 2. Withdrawal from Account held by government agency a. The instruments used for withdrawal from Rupiah Accounts are BI Checks, BI BGs, electronic means, or other means. b. Procedures

23 23 b. Procedures for the use of BI Checks, BI BGs, and electronic means for withdrawal from Accounts held by government agencies are as stipulated in number 1 letter a, letter b.1), 2), 4), and 5), and letter c. c. It is possible for Account withdrawal by means of BI BG to be made in favor of multiple beneficiaries, with details of each beneficiary and nominal set forth in an attachment to the BI BG. The nominal on the BI BG must be the sum of the nominal stated in the attachment. d. Other means used for withdrawal from Account held by government agency comprises instruments for Account withdrawal in form standardized by the government and approved by Bank Indonesia. The standard slips already issued by the Ministry of Finance and which may be accepted by Bank Indonesia as means for charging to the Demand Deposit Account of the agency include but are not limited to the following: 1) SPMGB, a standard instrument issued by the Directorate General of Budgetary Affairs and the State Treasury Office in the same city as a Bank Indonesia Regional Office; 2) Collection-Payment Order (SPB-SPM), a standard instrument issued by the State Treasury Office not in the same city as a Bank Indonesia Regional Office (non-bank Indonesia State Treasury Office). 3) Request for funds transfer in foreign currency from government agency requiring further action from Bank Indonesia in conversion of nominal from foreign currency into rupiahs. e. Account withdrawal by means of SPMGB may be made in favor of only 1 (one) beneficiary. f. In the

24 24 f. In the event that the other means used is an instrument not as referred to in letter d, the document shall comply with the following requirements: 1) The instrument shall state at least the following clauses: a) order for payment; b) name and number of Demand Deposit Account debited at Bank Indonesia and/or name and number of Demand Deposit Account credited at Bank Indonesia; c) number, name of Account and Account Holder at the destination Bank; d) nominal in figures and words. 2) The instrument shall be made according to the following specifications: a) the paper of the instrument shall be standardized in accordance with the internal rules of the agency concerned; b) bears the logo of the agency concerned. 3) Prior to use, a specimen of an instrument complying with the provisions referred to in number 1) and number 2) shall be submitted in 3 (three) specimen leaves for approval by the Directorate of Accounting and Payment System (DASP), Bank Indonesia, c.q. Bureau for Development of the National Payment System. 4) In the event that Bank Indonesia has approved a specimen instrument as referred to in number 3), Bank Indonesia shall convey notice of approval attaching 1 (one) specimen leaf of the instrument. 3. Withdrawal

25 25 3. Withdrawal from Account held by international financial institution a. The means used for withdrawal of funds from Rupiah Accounts are BI Checks, BI BGs, electronic means, or other means. b. Procedures for the use of BI Checks, BI BGs, and electronic means for withdrawal from Accounts held by international financial institutions are as stipulated in number 1 letter a, letter b, and letter c. c. Other means used for Rupiah Account withdrawal comprise standard internal Bank Indonesia instruments prepared by the unit pertaining to the international financial institution Account Holder, based on a telex or transfer application letter from the Account Holder. 4. Withdrawal from Account held by other agency a. The means used for withdrawal from Rupiah Account held by other agency that in the opinion of Bank Indonesia requires a Demand Deposit Account at Bank Indonesia are BI Checks, BI BGs, electronic means, or other means; b. Procedures for the use of BI Checks, BI BGs, electronic means, or other means are as stipulated in number 1 letter a, letter b, letter c, and number 2 letter f. C. Withdrawal Procedure for Foreign Currency Account 1. Withdrawal from Account held by Bank a. Withdrawal from Foreign Currency Account may only be conducted through book entry by means of SWIFT or telex; b. Request for withdrawal from Foreign Currency Account may be processed if the request is received by Bank Indonesia no later than 2 (two) working days prior to the value date. 2. Withdrawal

26 26 2. Withdrawal from Account held by government agency Withdrawal from Foreign Currency Account held by the Ministry of Finance may be conducted by means of the following: a. SPMGB, a standard instrument issued by the State Treasury Office in the same city as a Bank Indonesia Regional Office and Directorate General of Budgetary Affairs for executing payment to partners or other parties against the account concerned or to be deducted from a special account. The format of SPMGBs used for withdrawal from a Foreign Currency Account shall require approval from Bank Indonesia; b. SPB-SPM, a standard instrument issued by the State Treasury Office not in the same city as a Bank Indonesia Regional Office for execution of payment to partners or other parties thereafter to be deducted from a special account at the Bank Indonesia Head Office. The format of SPMGBs used for withdrawal from a Foreign Currency Account shall require approval from Bank Indonesia; c. Order for Payment From Special Account (SPMRK), an instrument issued by the Directorate General of Budgetary Affairs and conveyed to the Bank Indonesia Head Office to be charged against a special account in foreign currency. The format of SPMRKs used for withdrawal from a Foreign Currency Account shall require approval from Bank Indonesia; d. Power-of-Attorney for payment from special account for Letter of Credit (SPMRK L/C), an instrument issued by the Directorate General of Budgetary Affairs conveyed to the Bank Indonesia Head Office to be charged against a special account for Letter of Credit. The format of the SPMRK L/C shall require approval from Bank Indonesia; For government

27 27 For government agencies outside the Ministry of Finance, withdrawal from a Foreign Currency Account shall be conducted using standardized instruments complying with the provisions stipulated in letter B number 2 letter f. 3. Withdrawal from Account held by international financial institution Withdrawal from a Foreign Currency Account held by an international financial institution may only be conducted by bookkeeping transfer, using SWIFT or standard internal Bank Indonesia payment instruments prepared by the unit pertaining to the international financial institution Account Holder, based on a telex from the Account Holder. 4. Withdrawal from account held by other agency Withdrawal from a Foreign Currency Account held by another agency that in the opinion of Bank Indonesia requires a Demand Deposit Account at Bank Indonesia may only be conducted by means of SWIFT or telex. VI. USE OF BI CHECKS/BGs AND BI CHECKBOOK/BG BOOK ORDERING PROCEDURE 1. BI Checks may only be used for cash withdrawal from a Rupiah Account. 2. BI BGs shall be used for transfer of funds from one Rupiah Account to another Rupiah Account. 3. BI Checks and BI BGs shall be printed in accordance with instrument specifications as stipulated in the applicable Bank Indonesia provisions concerning Instruments, Clearing Documents, and Printing at Security Document Printing House. 4. In the event that Account withdrawal is made using a BI Check or BI BG, BI Checkbooks or BI BG Books may be obtained at Bank Indonesia as needed. 5. Order

28 28 5. Order for a BI Checkbook or BI BG book shall be placed by the person authorized to execute withdrawals from the Account and having a valid Specimen Signature at Bank Indonesia, subject to the following provisions: a. For parties applying for the first time to open a Demand Deposit Account, order for BI Checkbook or BI BG Book shall be placed by completing the special order form for BI Checkbook or BI BG Book according to the example in Appendix 5; b. For an Account Holder having an existing Demand Deposit Account, order for a BI Checkbook or BI BG Book shall be placed by completing the special order form for BI Checkbook or BI BG Book in the BI Checkbook or BI BG. In the event of loss or damage to the special form, order for the BI Checkbook or BI BG Book, the provisions referred to in letter a shall apply. 6. The BI Checkbook or BI BG Book shall be collected by the person authorized to conduct Account withdrawals and having a current valid Specimen Signature at Bank Indonesia or by a person vested with specific authorization a written document bearing sufficient revenue stamp. 7. The Account Holder shall be responsible for any and all improper use of each BI Check and/or BI BG by any unauthorized party and for all consequences arising from such improper use. 8. Bank Indonesia will not process any BI Check or BI BG with discrepancy between nominal in figures and nominal in words. 9. The writing of nominal in figures and in words may not be made with any strikeouts or changes. 10. Any error in typing or inscription in a BI Check or BI BG (document) used as a Book Entry Instrument other than difference between nominal in figures and words as referred to in number 8 may be corrected by: a. Striking

29 29 a. Striking through the erroneous data using a ballpoint or similar pen, use of correction fluid/paper shall not be permitted; b. Inscribing the correct data in a blank space near the data struck through; c. The party conducting the withdrawal shall sign near the data struck through. In the event that withdrawal is made by more than one person, the signatures shall be affixed according to the number of persons conducting the withdrawal. 11. Bank Indonesia will reject any BI Check or BI BG signed by a person withdrawing funds from an Account whose signing authority has expired and is no longer valid. 12. If any BI Check or BI BG is not used by the Account Holder, the Account Holder shall report the matter in writing to Bank Indonesia, stating the serial number of the BI Check or BI BG and the reason for non-use of the BI Check or BI BG. 13. In the event of loss of a BI Check or BI BG, the Account Holder shall immediately report in writing to Bank Indonesia attaching an official report of the loss from the competent agency or the police. If the report is not accompanied by the official report of the loss from the competent agency, the loss shall be deemed not reported. 14. A BI Check or BI BG may not be inscribed by means of an electric typewriter. VII. CHANGE OF ACCOUNT NAME AND NUMBER 1. Changes in Account may only be made in the event of a change in account number or account name. 2. Change in Account number may only be made by Bank Indonesia. This change will be made in respect of any change in the internal policies of Bank Indonesia. 3. Change

30 30 3. Change in Account name may only be made on the basis of a written application signed by the Account Holder, attaching photocopies of supporting documents certified as authentic copies of their originals by an authorized officer having a Specimen Signature at Bank Indonesia. 4. Application as referred to in number 3 shall be submitted to the Rupiah Transaction Settlement Division Directorate of Accounting and Payment System for a Rupiah Account or the Foreign Currency Account Division Directorate of Accounting and Payment System for a Foreign Currency Account, Bank Indonesia, Jl. M.H. Thamrin No. 2, Jakarta 10010, or the Bank Indonesia Regional Office. 5. Bank Indonesia shall inform the Account Holder and other concerned parties when any change in number and name of Demand Deposit Account has been made and becomes effective. 6. For Demand Deposit Accounts opened through a relevant unit, application for change in name shall be submitted through that unit. 7. In the event that an Account Holder does not provide notification of any change, the data previously reported to Bank Indonesia shall be deemed to remain valid. VIII. ACCOUNT CLOSURE A. Application 1. Bank Indonesia may close a Demand Deposit Account at any time, whether upon written request from the Account Holder, the competent authority pertaining to the Demand Deposit Account concerned, including but not limited to the competent agency for Bank supervision, or at the discretion of Bank Indonesia. 2. Application for Account closure by an Account Holder or competent authority pertaining to the Demand Deposit Account concerned shall be made as follows: a. The Account

31 31 a. The Account Holder, represented by the Board of Directors of the Bank, an authorized officer or officer empowered for closure of the Demand Deposit Account, or competent agency pertaining to the Demand Deposit Account concerned, shall submit a written application for Account closure to the Rupiah Transaction Settlement Division Directorate of Accounting and Payment System for a Rupiah Account, or the Foreign Currency Accounting Division Directorate of Accounting and Payment System for a Rupiah Account for a Foreign Currency Account, Bank Indonesia, Jl. M.H. Thamrin No. 2, Jakarta 10010,or the Bank Indonesia Regional Office, stating the reason for Account closure. b. Application for closure of Account opened through a relevant unit shall first be submitted to that unit. The unit shall thereafter forward the application for account closure to the Directorate of Accounting and Payment System for a Rupiah Account, with a copy to the Rupiah Transaction Settlement Division Directorate of Accounting and Payment System for a Rupiah Account for a Rupiah Account, or the Foreign Currency Accounting Division Directorate of Accounting and Payment System for a Rupiah Account for a Foreign Currency Account, Bank Indonesia, Jl. M.H. Thamrin No. 2, Jakarta 10010,or the Bank Indonesia Regional Office. B. Process of Approval/Rejection 1. Account Closure at the request of the Account Holder or competent authority pertaining to the Demand Deposit Account concerned shall require prior written approval from Bank Indonesia. 2. Bank Indonesia may close a Demand Deposit Account by reason of matters that include but are not limited to the following: a. The Account

32 32 a. The Account Holder has more than 1 (one) Demand Deposit Account at one Bank Indonesia office (Bank Indonesia Head Office and Bank Indonesia Regional Office), and the account entries made may be accommodated in one of the existing accounts; b. The Account Holder has no official dealings with Bank Indonesia; c. The Demand Deposit Account is inactive for 2 (two) years. If within a period of 1.5 (one and a half) years the account is not active, Bank Indonesia shall inform the party concerned of the matter in writing and at the same time request the party concerned to close the Demand Deposit Account. If there is no response from the Account Holder within a period of 6 (six) months after this notification, the Demand Deposit Account shall be closed without prior notice. In the case of a special account in the name of the Government pertaining to foreign borrowings, the demand deposit account may only be closed after taking prior account of the expiration of the loan agreement and the balance of the special account. C. Procedure for Closure 1. Bank Indonesia shall inform the Account Holder in writing of the Account closure, whether the closure is at the request of the Account Holder or the competent authority pertaining to the Demand Deposit Account concerned, or is made at the discretion of Bank Indonesia. 2. The balance of a Demand Deposit Account to be closed shall be transferred to a specified account to be determined by Bank Indonesia pending further settlement with the Account Holder. In the case of government special accounts, transfer of the account balance shall require prior written approval of the Ministry of Finance of the Republic of Indonesia. 3. Bank

33 33 3. Bank Indonesia, c.q. Directorate of Accounting and Payment System or the Bank Indonesia Regional Office shall close the Demand Deposit Account after the settlement of all rights and liabilities of the Account Holder at Bank Indonesia. 4. The account shall be closed after the Account balance is zero. 5. After the Account closure, any BI Checks or BI BGs still in circulation may no longer be processed against or in favor of the Demand Deposit Account. 6. It is not necessary for any remaining unused portion of a BI Checkbook or BI BG Book still with the Account Holder to be returned to Bank Indonesia. All risks arising from improper use of a BI Check or BI BG shall be the responsibility of the Account Holder. 7. Bank Indonesia shall cancel any remaining portion of a BI Checkbook or BI BG Book and revoke all Specimen Signatures after Account closure is completed. 8. Bank Indonesia shall inform the Account Holder and other relevant parties in writing of the Account closure. IX. SPECIAL ACCOUNTS Special Accounts are Rupiah Accounts or Foreign Currency Accounts in which special requirements and procedures are stipulated for opening, deposit, withdrawal, and closure. A. General Terms and Conditions 1. Special Account includes but is not limited to Escrow Account and Blocked Account. 2. Escrow Account is an account opened specifically for a certain purpose to hold funds entrusted to Bank Indonesia pursuant to certain terms and conditions in accordance with a written agreement. 3. Blocked