REGULATION OF BANK INDONESIA NUMBER : 2/22/PBI/2000 CONCERNING EXTERNAL DEBT REPORTING OBLIGATION GOVERNOR OF BANK INDONESIA, Considering : a. whereas, in order to improve the success of monetary control, information on the financial obligation of Banks, Non-Bank Institutions, and individuals toward nonresident are required, particularly for External Debt; b. whereas, External Debt is one of important components in the compilation of balance of payment statistics, foreign exchange reserves management, and formulation of monetary policies; c. whereas, in this matter, it is considered necessary to compile the Regulation of Bank Indonesia concerning the External Debt Reporting Obligation. 1
In view of : 1. Act Number 23 of 1999 concerning Bank Indonesia (State Gazette of Republic of Indonesia of 1999 Number 66, Addendum to State Gazette Number 3843); 2. Act Number 24 of 1999 concerning the Foreign exchange flows and Exchange Rate System (State Gazette of Republic of Indonesia of 1999 Number 67, Addendum to State Gazette Number 3844); DECIDED To stipulate : REGULATION OF BANK INDONESIA ON THE EXTERNAL DEBT REPORTING OBLIGATION CHAPTER I GENERAL PROVISIONS Article 1 In this Regulation: 1. Bank means Commercial Bank as stipulated in Act Number 7 of 1997 concerning Banking as has been amended by Act Number 10 of 1998; 2. Non-Bank Institution is a State-owned Enterprise, Regional State-owned Enterprise, and Private Corporation which does not do business as a bank; 2
3. State-owned Enterprise (SoE) is an enterprise owned by the state in accordance with Act Number 9 of 1969 concerning the Decision of Government Regulation in lieu of law No. 1 of 1969 regarding the types of State Enterprises to become Law and other enterprises established under a special Law where there is ownership by the state; 4. Regional State-owned Enterprise (RSE) is an enterprise owned by the Regional Government; 5. Private Corporation (PC) is an enterprise that is not included in the definition of SoE and RSE. 6. External Debt or hereinafter referred to as ED is debt of residents to non- residents, in foreign currency and/or in rupiah, based upon a loan agreement or other agreement, except demand deposit, savings account, and time deposit. 7. Residents is person, legal entity, or other entity domiciled or plan to be domiciled in Indonesia for at least one (1) year, including the representatives and diplomatic staff of the Republic of Indonesia overseas; CHAPTER II REPORTING OBLIGATIONS 3
Article 2 The Bank, Non-Bank Institutions and individuals thaw own ED shall report on each of their external debt to Bank Indonesia in a complete, accurate, timely manner, and periodically in accordance with the schedule determined by Bank Indonesia. Article 3 An external debt Report that contain individual data / information submitted to Bank Indonesia is confidential in nature. Article 4 An external debt that originates from a Two Step Loan is not required to be reported to Bank Indonesia. Article 5 (1) The external debt report to be submitted by Banks, Non- Bank Institutions and individuals as described in article 2 shall consists of the basic data of external debt and/or its change thereof as well as external debt outstanding data. (2) The amount and period of external debts to be reported to Bank Indonesia shall be further determined in the Circular of Bank Indonesia. 4
Article 6 (1) In the case of any doubts of the amount of external debts being reported, Bank Indonesia shall have the right to verify the report, including thorough requesting the proof of bookkeeping, records, and documents associated with the reporting obligation. (2) Bank, Non-Bank Institutions and individuals shall be obliged to provide to assist Bank Indonesia accuracy on verification of the report as described in item (1). CHAPTER SANCTION Article 7 (1) Banks, Non-Bank Institutions and individuals that are late in submitting the external debt reports as described in article 5 item 1 for each ED having been received shall be subject to administrative penalty in the form of a fine of IDR. 100,000.00 for each day of delay. (2) Banks, Non-Bank Institutions and individuals that are late in reporting the data of external debt outstanding exceeding a period of six (6) months as of the expiry of reporting deadline, shall be imposed by an administrative penalty in the form of a fine of 1/000 5
(one per thousand) of each ED received plus a penalty for late reporting as described in item (1). (3) Banks, Non-Bank Institutions and individuals that have received external debt but do not a report the basic external debt data to Bank Indonesia shall be subject to paying an administrative penalty in the form of a fine of 1/1000 (one per thousand) for each external debt received plus penalty for late reporting as described in item (1). (4) Banks, Non-Bank Institutions and individuals that submit incomplete and inaccurate external debt report shall be subject to paying an administrative penalty in the form of a fine of IDR 1,000,000.00. Article 8 Further compilation on this Regulation of Bank Indonesia shall be specified by the Circular of Bank Indonesia. CHAPTER IV CONCLUDING PROVISIONS Article 9 With the application of this Regulation of Bank Indonesia : 1. Decree of the Board of Managing Directors of Bank Indonesia Number 29/192/KEP/DIR dated March 26, 1997 concerning the Guidelines for the receipt of Foreign 6
Bank Commercial Debts article 6 item (2), especially concerning the report form, article 8 item (2), (3), (4) and article 11. 2. Decree of the Board of Managing Directors of Bank Indonesia Number 29/193/KEP/DIR dated March 26, 1997 concerning reporting of External Commercial Debts by Non Bank Institution. 3. Decree of the Board of Managing Directors of Bank Indonesia Number 31/5/KEP/DIR dated April 8, 1998 concerning reporting obligation of External Commercial Debts by Private Enterprises. 4. Circular of Bank Indonesia Number 29/55/ULN dated March 26, 1997 concerning Guidelines for the receipt of External Commercial Debts by Banks, especially point IV, violation of the procedure of payment of penalties or the violation of External Commercial Debts reporting. 5. Circular of Bank Indonesia Number 31/1/ULN dated April 17, 1998 concerning revision of the format of report of External Commercial Debts receipt specified in the Decree of the Board of Managing Directors of Bank Indonesia Number 29/192/KEP/DIR dated March 26 1997 regarding Guidelines for the receipt of External Commercial Debts by Banks. 7
6. Decree of the Board of Managing Directors of Bank Indonesia Number 5/9-Kep.Dir dated June 23, 1972 concerning Procedure of Reporting of External Debt receipt by Foreign Capital Investment. are declared as no longer applicable. Article 10 This Regulation of Bank Indonesia shall become effective as of the date this regulation is set. Declared in Jakarta On 2 October, 2000 For the GOVERNOR OF BANK INDONESIA ANWAR NASUTION SENIOR DEPUTY GOVERNOR STATE GAZETTE OF REPUBLIC OF INDONESIA OF 2000 NUMBER 172 DLN 8
ELUCIDATION OF THE REGULATION OF BANK INDONESIA NUMBER : 2/22/PBI/2/2000 CONCERNING THE EXTERNAL DEBT REPORTING OBLIGATION GENERAL As stipulated in Act Number 23 of 1999 concerning Bank Indonesia, one of duties of Bank Indonesia shall be to determine and implement monetary policies. In order to implement these monetary policies, Bank Indonesia may perform monetary management through various ways deemed to be effective. Meanwhile, Act Number 24 of 1999 concerning the Foreign Exchange Flows and Exchange Rate System declares that while foreign exchange is one of the most important financing sources for the national economic development. Nevertheless, information and data on the activities of foreign exchange flows, have not so far been incomplete. Therefore, an effective foreign exchange flows monitoring system is required. This effective foreign exchange flows monitoring system will support the application of free foreign exchange flows in order to avoid any adverse impacts on the nation s economy. 9
External Debt monitoring is part of the measures initiated by Bank Indonesia in a bid to enhance the effectiveness of monetary policies through effective foreign exchange flows monitoring. Foreign exchange flows monitoring shall involve monitoring of all transactions that may potentially result in the transfer of assets and financial obligations between residents and non-residents including, external debt. External Debt monitoring shall be implemented by obliging the Banks, Non-Bank Institutions and Individuals to report their external debt to Bank Indonesia. ARTICLE BY ARTICLE Article 1 Point 1 through point 7 Self explanatory Article 2 An accurate external debt report shall mean, if the reported ED data / information is in accordance with the loan agreement and other similar documents and, realization of loan agreement is based on the existing facts. 10
Incomplete reporting shall mean, if the report having been submitted by the Banks, Non-Bank Institutions and individuals fails to comply with requirements set forth by Bank Indonesia. Article 3 Individual data / information shall mean the ED data / information received by Bank Indonesia from the respective reporting agents containing among other things the name, address of creditors or borrower, amount of debt and other required basic data. Article 4 Government s two-step loan that is not reported administratively has been administered by Bank Indonesia as the Government s loan. It is intended for avoiding double counting of the debt. Article 5 Paragraph 1 a. Basic data of external debt is data of external debtor that contains information on the identity of borrower and ED data containing information on the type of loan, amount of debt, and loan terms. 11
b. ED realization data shall be the data containing such as withdrawal, payment and arrears of repayment. Paragraph 2 Self explanatory. Article 6 Self explanatory. Article 7 Paragraph 1 Bank, Non-Bank Institution and individual is deemed to have been late in reporting if the External Debt report of Bank, Non-Bank Institutions and individual has passed the expiry of the reporting period as stipulated in the Circular of Bank Indonesia. Day shall mean the workdays of Bank Indonesia. Self explanatory. Paragraph 2 Self explanatory. Paragraph 3 Bank Indonesia has the right to declare that a Bank, Non-Bank Institutions and individual fails to submit the report on basic data of external debt and / or its 12
changes thereof after receiving information thereof from third party. Paragraph 4 Self explanatory Article 8 The Circular of Bank Indonesia elucidates, among other things : a. Content, form, format, and procedure in completing the External Debt report. b. Procedure in submitting report. c. Procedure in imposing administrative penalties. Article 9 Point 1 through point 3 Self explanatory. Point 4 Procedure in paying penalties for the violation of external commercial debt reporting is the payment to account number 304.000470 under the name of Receipt of obligatory penalty payment due to Violation of External Commercial Debts Regulation. Point 5 through point 6. Self explanatory. 13
Article 10 Self explanatory. ADDENDUM TO STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 4007 14