to Indonesian
Foreign exchange supply in the domestic market is currently largely derived from foreign funds in the form of portfolio investments which are susceptible to risk of reversal (sudden capital reversal). Meanwhile, the national economic development requires adequate and sustainable funding. One of the stable (sustainable) sources for supply of foreign exchange is derived from DHE and DULN which are also important to support the stability of the rupiah and overall macroeconomic.
In practice not all of DHE and DULN are placed in Indonesian banks. Therefore, an arrangement is necessary to ensure DHE receipts and DULN withdrawals be conducted through Indonesian banking.
These settings are still based on the prevailing system of free foreign exchange during this time, where every resident can freely hold and use foreign exchange as stipulated in Law No. 24 of 1999 on Foreign Exchange Traffic and Exchange Rate System.
In order to support the policy of income of foreign exchange derived from export, Bank Indonesia, Ministry of Finance, and the Central Bureau of Statistics has made a Memorandum of Understanding on Exchange of Data Related to Export and Import Activities.
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Supporting documents shall include among others, photocopies of PEB documents, usance L/C, a certificate of deferral of payment from importers.
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Explanation on the difference between DHE and PEB values and types of supporting documents shall refer to those provisions governing the reporting of foreign exchange traffic.
What is meant by "maklon" is the provision of services for process of completing a particular item which is performed by the service providers (outsourced), and the service users set the specifications, as well as provide raw materials and/or semi finished goods and/or auxiliary/supporting materials that will be processed partially or completely, with the ownership of the finished goods is in service users.
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What is meant by "force majeure" is any circumstances that cause Exporters to receive DHE less than the PEB value or not receiving DHE caused by fire, unrest, riots, terrorism, bombs, war, sabotage, labor strikes, failure of the system used in the transaction as well as natural disasters such as earthquakes, floods, which is justified by the authorities or officials from relevant agencies in the local area.
The term "supporting documents" are documents that can prove that the importers condition is in default, bankruptcy, or force majeure.
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Letter a
The term "credit agreement (loan agreement) in the form of non-revolving" shall mean any loan agreement which does not allow the accumulated realization of ULN withdrawals to exceed the commitment.
Letter b
Example 1:
PT. A gains ULN for USD20, 000,000.00 (twenty million U.S. Dollars) from XYZ creditor in Singapore for previous ULN refinancing with the same outstanding amount in the amount of USD20,000,000.00 (twenty million U.S. dollars) received from ABC Bank's creditors in Singapore. Consideration of PT. A to do such refinancing is due to the lower offers of interest rates and more lenient terms & condition. Since such refinancing has no excessive foreign currency flows then there is no obligation to withdraw DULN from Foreign Exchange Bank.
Example 2:
PT. B obtained ULN $ 30, 000,000.00 (thirty million U.S. Dollars) from a creditor DEF Bank in Singapore. The ULN is used to refinance previous outstanding ULN recorded at USD20, 000,000.00 (twenty million U.S. dollars) received from a creditor GHI Bank in Singapore and the difference of USD10, 000,000.00 (ten million U.S. dollars) is used for additional working capital. DULN withdrawal amounting to USD10, 000,000.00 (Ten million U.S. dollars) must be done through a Foreign Exchange Bank.
Letter c
Debt securities (debt securities) are debt instruments that can be traded in the money market or in domestic capital market as well as abroad.
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The accumulated DULN Withdrawal value is calculated up to the last DULN withdrawal.
Example:
PT. C obtains ULN in the form of the loan agreement from creditors of KLM in Singapore amounting to USD100,000,000.00 (one hundred million U.S. dollars). It is agreed that the withdrawal is conducted as many as 10 (ten) times during the life of the loan agreement. Until the last withdrawal or the 10th withdrawal, the recorded withdrawal amount was in fact US$ 80,000,000.00 (eighty million U.S. dollars). Thus there is a difference of USD20,000,000.00 (twenty million U.S. dollars) between the total value of accumulated withdrawals to the value of commitment given by the creditor. Due to the difference between the total value of accumulated withdrawals to the commitment value, the debtor must submit an explanation in writing to Bank Indonesia.
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The term "nominal/face value of DHE that has not been received" is PEB value reduced by the DHE value which has been received by the Foreign Exchange Bank.
Example:
The Export values listed in the PEB document is USD500,000.00 (Five hundred thousand U.S. dollars). DHE received through the Foreign Exchange Bank is USD100,000.00 (one hundred thousand U.S. Dollars). The rest of USD400, 000.00 (four hundred thousand U.S. dollars) is received through a Bank abroad and not withdrawn in Foreign Exchange Bank by the deadline prescribed, namely 90 (ninety) days after the PEB date. Based on the above conditions, Exporter shall be fined by 0.5% X USD400, 000.00.
The term "Bank Indonesia middle rate" is transactions rate of Bank Indonesia calculated by selling rate transactions plus the buying rate transaction, divided by 2 (two).
What is meant by "date of imposition of sanctions" is the issuance date of a written notice from Bank Indonesia.
Imposition of sanctions over the suspension of Export services shall be conducted by the competent authority in the field of customs upon request of Bank Indonesia.
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Discharge of suspension of by the Export services is conducted by the competent authority in the field of customs upon request of Bank Indonesia.
Proof of payment of administrative sanctions/receiving DHE, among others in the form of a photocopy of proof of transfer/payment of penalties into the State Treasury account, SWIFT message copy certified by the receiving Foreign Exchange Bank.
Submission of proof of payment of administrative sanctions/receiving DHE is addressed to:
Bank Indonesia
Directorate of Economic and Monetary Statistics
Tower Sjafruddin Prawiranegara Lt. 16
Jl. M.H. Thamrin No.. 2
Central Jakarta
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Examples of the receipt of DHE agreed not through the Foreign Exchange Bank and/or associated with the payment of liability of the Exporter:
Exporters PT. D obtains long-term loan from a syndicate of a number of overseas bank valuing USD500,000,000.00 (five hundred million U.S. Dollars) in February 2010 with a clause as follows:
a) Payment of principal and interest amounting to US$ 26,250,000.00 million (twenty-six million, two hundred and fifty thousand U.S. Dollars) conducted every 6 (six) months from the drawdown of debt;
b) The proceeds of exports of each month shall be placed in an account in KLM bank in Hong Kong;
c) The KLM Bank shall hold for $ 4,375,000.00 (four million, three hundred and seventy-five thousand U.S. dollars) of the export earned every month;
d) KLM Bank shall debit the account every 6 months for a profit of creditor accounts.
Mechanism of DHE receipt associated with The Exporter’s obligations payment as an example of the above agreement is only allowed until the end of December 2012.
Since January 2013, exporters are obliged to receive all DHE through Foreign exchange banks. Installments of principal and interest of the loan which was originally retained in KLM Bank in the amount of $ 4,375,000.00 (four million, three hundred and seven seventy-five thousand U.S. dollars) from the income of exports each month, is paid after all DHE is received through foreign exchange banks.
Supporting documents shall include, among others, copies of contract agreements associated with the receipt of DHE not through the Foreign Exchange Bank or which is related to the Exporter’s payment obligations.
Submission of written explanation and supporting documents are addressed to:
Bank Indonesia
Directorate of Economic and Monetary Statistics
Tower Sjafruddin Prawiranegara Lt. 16
Jl. M.H. Thamrin No.. 2
Central Jakarta
Example 1:
For Export with PEB date of 2 January 2012, receipt of DHE through the Foreign Exchange Bank is no later than 2 July 2012.
Example 2:
For Export with PEB date of 31 December 2012, receipt of DHE through the Foreign Exchange Bank is no later than 1 July 2013.
Examples of receipt of DHE derived from netting the bill with Exporter obligations:
In March 2012, PT. E acknowledges the debt of import transactions in the amount of USD1,000,000.00 (one million U.S. dollars) and accounts receivable upon Export transactions amounting to USD1,250,000.00 (one million two hundred and fifty thousand U.S.Dollars) to M company in Malaysia. Debt falls due in May 2012 and both parties agreed on payment by netting mechanism in which the only difference from those debts which will be paid.
In the example case above, PT. E will receive USD250,000.00 (two hundred and fifty thousand U.S. Dollars) from the M company. During 2012, netting transaction is still allowed and the DHE value that must be received through the Foreign Exchange Bank is in the amount of USD250,000.00 (two hundred and fifty thousand U.S. dollars). Starting 1 January2013, netting is not allowed.
Supporting documents include a photocopy of purchase order, sales contract, and/or documents related to account receivable settled by netting between the Exporter with other parties.
PT. F obtained ULN in the form of the loan agreement from PQR creditors in the amount of USD100,000,000.00 (one hundred million U.S. dollars), signed on August 26, 2010 with a due date of August 26, 2015. On September 25, 2012, agreement was modified by raising the ULN ceiling becomes USD150,000,000.00 (one hundred and fifty million U.S. dollars).
In the example case above, the DULN withdrawal upon the additional ceiling of ULN in the amount of USD50,000,000.00 (fifty million U.S. Dollars) must be conducted through a foreign exchange bank.
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SUPPLEMENTARY STATE GAZETTE OF THE REPUBLIC OF INDONESIA No. 5241