Market Link Guide - Indonesia
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect via Citibank N.A., Jakarta to:
|
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: 254900S3M4RPY4ZKHJ38 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/No | Remarks | |
| Settlement free of payment | Yes | Government bonds and treasury bills: settlement against payment only, except in certain circumstances detailed in this document. |
| Settlement against payment | Yes | Eligible settlement currency: Indonesian Rupiah (IDR). Government bonds and treasury bills: settlement against payment only, except in certain circumstances detailed in this document. |
| Settlement against payment in central bank money account of CBL/CBL client | 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. |
Local legislation
The below section is valid on the date of the legal opinions that were issued and might be subject to change. 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. The scope of the legal opinions is limited to the local legislation applicable to the relevant CSD (and intermediary, if any). For links using an intermediary located in another jurisdiction, please find a separate Local legislation section for the jurisdiction of the intermediary below. For clients accessing local markets via other Clearstream entities, please also review the Local legislation section in the relevant Market Link Guide for such Clearstream entity.
Local legislation of the CSD/Intermediary | |
Date of legal opinion | 25 June 2024 |
Nature of rights on securities | Substantive law of the jurisdiction will govern the nature of the rights on the Securities. Rights on the securities are ownership rights. No differences in conclusions in case of sub-accounts for Clients within the Direct CSD Account. |
Recognition of nominee concept | Nominee concept not expressly recognised under local law, but possible to hold assets in name of another entity. |
No right of retention to the CSD under local law | CSD has a lien or similar encumbrance under local law, but such lien could be contractually excluded or waived. |
No upper-tier attachments | Securities would not be subject to attachment. |
No right of use without prior consent | Laws of the jurisdiction restrict CSD from using Securities without Clearstream’s prior consent. |
Segregation of assets at the CSD | CSD is under legal/regulatory obligation to segregate the securities held for each participant. |
Loss of assets | No general restrictions on ability to recover lost assets or on indemnification under local law, subject to certain exceptions noted by counsel (such as force majeure, no negligence by the CSD, liability caps, sovereign immunity, etc.). |
Ability to recover client assets in the event of insolvency of CSD | Securities would be recoverable. |
Ability to recover client assets in the event of insolvency of Agent | Securities would be recoverable in the event of insolvency of the Subcustodian. |
Shortfall pro-rated among holders | Shortfall in the securities would be allocated among the holders of the applicable Securities pro rata to their respective ownership percentages. |
Settlement finality in case of insolvency | Transfer orders are irrevocable and finality of settlement is assured. |