Collateral Management

Collateral Offline

Offline collaterals accepted by IDClear are collateral in form of minimum cash collateral (MCC) with certain requirements, time deposits, Bank Guarantee and Bank Indonesia Treasury Bills (SBI).

The description for each type of offline collateral is as follows:

a. Time Deposits, with the following requirements:

  • Deposit with maturity at least one month;
  • Deposits in rupiah (IDR) currency or in foreign currency allowed according to IDClear rules;
  • Supporting documents to deposit collateral in the form of time deposits must be verified and validated by the Legal and Membership Division;
  • Input of collateral is done when the required documents has been submitted and went through the entire process in the established procedure.

b. Minimum Cash Collateral

  • Minimum Cash Collateral is a minimum amount of collateral that must be met by the Securities Company that have just become Clearing Members and Clearing Members. Minimum Cash Collateral have been set in the form of cash or cash equivalents;
  • Minimum Cash Collateral is set at 10% (ten percent) of the daily average settlement value (securities delivery and cash payment obligation) each Clearing Member for the past 6 months or at least Rp1,000,000,000,- (one billion rupiah);
  • Minimum Cash Collateral in the form of cash/cash equivalents submitted in cash, are managed in the form of time  deposits at the Payment Bank appointed by the Clearing Member.

c. Bank Guarantee, with the following requirements:

  • Bank Guarantee in the form of rupiah (IDR) currency or the United States dollar (US Dollars).
  • Has a maturity of at least 3 (three) months;
  • Bank Guarantee is irrevocable and unconditional;
  • Bank Guarantee shall be verified and validated by the Legal and Membership Division;
  • Collateral in the form of bank guarantee are imposed haircut of 5% of the collateral value.

d. Bank Indonesia Treasury Bills (SBI), with the following requirements:

  • Bank Indonesia Treasury Bills that can be used as collateral is Bank Indonesia Treasury Bills which have exceeded the banned period for conducting transactions in accordance Bank Indonesia rules;
  • Have a maturity of at least 3 (three) months;
  • Supporting Documents for SBI collateral consist of a Power of Attorney to Sell SBI and Revocation Letter of Power of Attorney to sell SBI;
  • Collateral in the form of SBI is charged Haircut of 5% of the collateral value.