WORLD TRADE
ORGANIZATIONS/C/N/78
30 October 1998
(98-4335)
Council for Trade in Services Original:  English
NOTIFICATION PURSUANT TO ARTICLE III:3 OF THE
GENERAL AGREEMENT ON TRADE IN SERVICES
The attached notification on regulations dating from 1995 has been submitted to the Council
for Trade in Services by Indonesia pursuant to its obligations under paragraph 3 of Article III of the
GATS.
_______________
1. Member Notifying:
Indonesia
2. Notification under:
GATS Article III, paragraph 3 (Transparency)
3. Date of entry into force
25 January 1995
Duration:
Indefinite
4. Agency responsible for enforcement of the measure:
Bank Indonesia
5. Description of the measure:
Measure:
Decree of the Board of Managing Direct ors of Bank Indonesia No. 27/118/KEP/DIR,
25 January 1995 concerning Criteria of Reprehensible Acts Precluding persons from Holding
Positions as Bank Shareholders and/or in Bank Management.S/C/N/78
Page 2
Description:
- The provisions governing the criteria of reprehensible acts precluding persons from
holding positions as bank shareholders and/or in bank management are intended to
protect banks from those whose attitude, behaviour and involvement pose a risk to theoperations and soundness of the bank.
- The criteria for persons banned from becoming shareholders and/or managers of
banks are as follows:
(a) Bank shareholders, management or employees considered to be involved in
or responsible for such acts as embezzlement and manipulation, fictitioustransactions, and collusion with customers and other parties.
(b) Bank management, former bank management and other connected parties
who in the past are considered to have  been involved in or responsible for
causing serious difficulties for the bank under their management.
(c) Shareholders or bank management who have been requested by Bank
Indonesia to relinquish their positions pursuant to Act No. 7 of 1992
concerning Banking Act.
(d) Bank shareholders and management listed as bad debtors at a bank.
(e) Persons declared by a court decision or according to widely available
information are perceived to lack good character and morals, and therefore
may endanger the bank.
(f) Persons serving a criminal sentence or having been convicted of a banking or
economic crime in a court decision with permanent legal force.
- A legal entity shall be banned from becoming a shareholder in a bank if its
shareholder and/or management fall within criteria concerned.
6. Members specifically affected:
None
7. Text available from:
Bank Indonesia attn:  Enquiry Point Team
Legal Bureau
Jl. M.H. Thamrin No. 2
Jakarta 10010
Fax: 62 21 380 14 30
email: enquirypoint@bi.go.idS/C/N/78
Page 3
1. Member Notifying:
Indonesia
2. Notification under:
GATS Article III, paragraph 3 (Transparency)
3. Date of entry into force
25 January 1995
Duration:
Indefinite
4. Agency responsible for enforcement of the measure:
Bank Indonesia
5. Description of the measure:
Measure:
Decree of the Board of Managing Direct ors of Bank Indonesia No. 27/119/KEP/DIR,
25 January 1995 concerning Annual Financial Statements and Published Financial
Statements.
Description:
- The Decree is enacted to amend the previous regulations governing the same subject
to improve the financial statement submitted to Bank Indonesia as well as the
financial statement announced to the public considered not yet fully in compliance
with the prevailing Financial Accounting Standards.
- Pursuant to the Decree:
(a) Banks are required to submit to Bank Indonesia an Annual Financial
Statement audited by a Certified Public Accountant which shall include aManagement Report not later than the end of April of the following year.
(b) Banks shall publish their Published Financial Statements according to the
form and procedure stipulated by Bank Indonesia at least twice each year,
namely an interim financial statement at the end of June, and a year-endfinancial statement at the end of June, and a year-end financial statement at
the end of December.  The Published Financial Statement shall be presented
in comparison with the financial statement for the same period of the previous
year.
(c) Banks shall submit to Bank Indonesia a newspaper clipping containing the
Published Financial Statement or a photocopy of the Published Financial
Statement attached to a notice board not later than 2 weeks after the date of
announcement.S/C/N/78
Page 4
(d) In the case of a Bank having its head office in Indonesia and owning shares or
holding ownership rights in another financial institution in excess of 50 per
cent of the capital of that financial institution, the Annual Financial Statement
and Published Financial Statement shall be prepared in consolidated form.Whereas, in the case of a Bank comprising a foreign bank branch office, the
Annual Financial Statement and Published Financial Statement shall represent
the combined financial statement for all offices in Indonesia.  Both statements
shall be formulated in accordance with the prevailing Financial Accounting
Standards.
- Failure to comply with this Decree, Banks will be liable for a penalty, administrative
and/or criminal sanctions.
6. Members specifically affected:
None
7. Text available from:
Bank Indonesia attn:  Enquiry Point Team
Legal BureauJl. M.H. Thamrin No. 2
Jakarta 10010
Fax: 62 21 380 14 30
email: enquirypoint@bi.go.idS/C/N/78
Page 5
1. Member Notifying:
Indonesia
2. Notification under:
GATS Article III, paragraph 3 (Transparency)
3. Date of entry into force
25 January 1995
Duration:
Indefinite
4. Agency responsible for enforcement of the measure:
Bank Indonesia
5. Description of the measure:
Measure:
Decree of the Board of Managing Direct ors of Bank Indonesia No. 27/120/KEP/DIR,
25 January 1995 concerning Procedures for Interbank Exchange of Information.
Description:
- The Decree Stipulates regulations on the procedures for interbank exchange of
information in order to promote efficiency and safeguard its banking operation.
- The scope of the exchange of information covers the condition of credit extended by
a bank to a certain debtor, and the condition and status of a bank
6. Members specifically affected:
None
7. Text available from:
Bank Indonesia attn:  Enquiry Point Team
Legal Bureau
Jl. M.H. Thamrin No. 2Jakarta 10010
Fax: 62 21 380 14 30
email: enquirypoint@bi.go.idS/C/N/78
Page 6
1. Member Notifying:
Indonesia
2. Notification under:
GATS Article III, paragraph 3 (Transparency)
3. Date of entry into force
1 November 1995
Duration:
Indefinite
4. Agency responsible for enforcement of the measure:
Bank Indonesia
5. Description of the measure:
Measure:
Decree of the Board of Managing Directors of Bank Indonesia No. 28/32/KEP/DIR, 4 July
1995 concerning Bilyet Giros.
Description:
- The Decree stipulates regarding the formal requirement of Bilyet Giro and Bilyet Giro as a
payment instrument equivalent to cross cheque in order to avoid infringement emerging in
practice.  According to the Decree, Bilyet Giro is defined as a payment order from a
Customer to the Bank ordering the transfer of  a stated amount of funds from the Customer's
Account to the Account of the stated Bearer.
6. Members specifically affected:
None
7. Text available from:
Bank Indonesia attn:  Enquiry Point Team
Legal Bureau
Jl. M.H. Thamrin No. 2Jakarta 10010
Fax: 62 21 380 14 30
email: enquirypoint@bi.go.idS/C/N/78
Page 7
1. Member Notifying:
Indonesia
2. Notification under:
GATS Article III, paragraph 3 (Transparency)
3. Date of entry into force
11 August 1995
Duration:
Indefinite
4. Agency responsible for enforcement of the measure:
Bank Indonesia
5. Description of the measure:
Measure:
Decree of the Board of Managing Director s of Bank Indonesia No. 28/52/KEP/DIR, 11
August 1995 concerning requirements for the Issuance and Trading of Commercial Paper
through Commercial Banks in Indonesia.
Description:
- A bank may act as arranger, issuing agent, paying agent, dealer or investor in trading
of CP;
- The capital and rating of a bank acting as arranger, issuing agent, paying agent, dealer
or investor for the 12 last months shall be sound;
- A Bank may act as arranger, issuing agent, paying agent, dealer or investor only in
CP that is rated investment grade as decided by a rating agency;
- A bank may operate as arranger, issuing agent, paying agent or dealer without
requiring a licence from Bank Indonesia.
6. Members specifically affected:
NoneS/C/N/78
Page 8
7. Text available from:
Bank Indonesia attn:  Enquiry Point Team
Legal BureauJl. M.H. Thamrin No. 2
Jakarta 10010
Fax: 62 21 380 14 30
email: enquirypoint@bi.go.idS/C/N/78
Page 9
1. Member Notifying:
Indonesia
2. Notification under:
GATS Article III, paragraph 3 (Transparency)
3. Date of entry into force
6 September 1995
Duration:
Indefinite
4. Agency responsible for enforcement of the measure:
Bank Indonesia
5. Description of the measure:
Measure:
Decree of the Board of Managing Direct ors of Bank Indonesia No. 28/63/KEP/DIR,
6 September 1995 concerning Legal Lending Limit for Companies Listed on the Stock
Exchange.
Description:
A company is a member of the corporate debtor group if it is one of two or more companies
linked to each other by ownership, management or financial ties falling within at least one of
the following criteria:
- 35 per cent or more of the ownership of each company is controlled by one company
or person, or jointly by one family;
- One of the companies controls 35 per cent or more of the ownership of another
company;
- A member of the board of directors, a member of the board of commissioners or
another officer with an executive officer in another company;
- Two or more of the companies have ownership and/or management linkages.
6. Members specifically affected:
NoneS/C/N/78
Page 10
7. Text available from:
Bank Indonesia attn:  Enquiry Point Team
Legal Bureau
Jl. M.H. Thamrin No. 2Jakarta 10010
Fax: 62 21 380 14 30
email: enquirypoint@bi.go.idS/C/N/78
Page 11
1. Member Notifying:
Indonesia
2. Notification under:
GATS Article III, paragraph 3 (Transparency)
3. Date of entry into force
13 October 1995
Duration:
Indefinite
4. Agency responsible for enforcement of the measure:
Bank Indonesia
5. Description of the measure:
Measure:
Decree of the Board of Managing Director s of Bank Indonesia No. 28/76/KEP/DIR, 13
October 1995 concerning Placement of Banks Under Temporary Control of Bank Indonesia.
Description:
Bank Indonesia can take the measure for temporary control of a bank that experiences
difficulties.
6. Members specifically affected:
None
7. Text available from:
Bank Indonesia attn:  Enquiry Point Team
Legal Bureau
Jl. M.H. Thamrin No. 2
Jakarta 10010
Fax: 62 21 380 14 30
email: enquirypoint@bi.go.idS/C/N/78
Page 12
1. Member Notifying:
Indonesia
2. Notification under:
GATS Article III, paragraph 3 (Transparency)
3. Date of entry into force
29 December 1995
Duration:
Indefinite
4. Agency responsible for enforcement of the measure:
Bank Indonesia
5. Description of the measure:
Measure:
Decree of the Board of Managing Directors of Bank Indonesia No. 28/119/KEP/DIR, dated
29 December 1995 concerning Derivative Transactions.
Description:
- Banks may conduct derivative transactions either on own behalf or on behalf of their
customers;
- Banks are prohibited from maintaining a position for derivative transactions
conducted by customers from within the same business group as the bank, orconducted by managing directors, commissioners, employees or owners of the bank
concerned;
- Banks are not allowed to grant their customers credit facilities or overdrafts for the
purpose of conducting derivative transactions;
- Banks shall only conduct derivative transactions linked to foreign currencies and
interest rates.
6. Members specifically affected:
NoneS/C/N/78
Page 13
7. Text available from:
Bank Indonesia attn:  Enquiry Point Team
Legal Bureau
Jl. M.H. Thamrin No. 2Jakarta 10010
Fax: 62 21 380 14 30
email: enquirypoint@bi.go.idS/C/N/78
Page 14
1. Member Notifying:
Indonesia
2. Notification under:
GATS Article III, paragraph 3 (Transparency)
3. Date of entry into force
4 August 1995
Duration:
Indefinite
4. Agency responsible for enforcement of the measure:
Ministry of Finance of the Republic of Indonesia
5. Description of the measure:
Measure:
Decree of the Minister of Finance No . 376/KMK.09/1995 concerning Freezing and
Confiscating Assets Owned by Debt Guarantor Hold at the Bank by the Board for State
Claims and Auctions/the Committee for State Claims.
Description:
- In dealing with state assets the Board for the State Claims and Auctions (BUPLN) has
rights to freeze and the Committee for the State Claims has rights to confiscate
without approval of the Minister of Finance.
6. Members specifically affected:
None
7. Text available from:
Bank Indonesia attn:  Enquiry Point Team
Legal Bureau
Jl. M.H. Thamrin No. 2
Jakarta 10010
Fax: 62 21 380 14 30
email: enquirypoint@bi.go.id
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