TREASURY SERVICES

Indonesia At a Glance

We continue to build on our core cash management

capabilities with innovative solutions that extend the
reach of our banking network in unique ways to address
the on-the-ground challenges of our clients in Indonesia.

B R A N C H LO C AT I O N

IDR Rp

Jakarta

Jakarta
JPMorgan Chase Bank
Plaza Chase Podium 3rd - 4th floor
Jl. Jend. Sudirman kav. 21
Jakarta 12920
Indonesia
Tel/Fax: 62-21-5291-8181/8233

Direct Clearing Membership:

JPMorgan is a direct member of BI-RTGS
and SKNBI, for high-value and low-value
transactions respectively, as well as the
Jakarta check clearing system.

Indonesias Cash Management Operating Environment

The size and topography of Indonesiaa country of islands situated on the Malay
Archipelagopresents a cash management challenge for clients doing business outside
of Jakarta, the capital city. The branch networks of the larger indigenous banks, while
extensive, are unable to offer comprehensive nationwide coverage. For example, a bank
branch might be located in the same city as a factory, but reaching the branch may be
inconvenient or a security concern.

Bank Accounts
Companies can hold domestic and foreign
currency accounts in Indonesia and foreign
currency accounts abroad. However, it is not
permitted to open a domestic currency
account offshore.
Currency Regulations
Indonesias local currency, the Indonesian
rupiah (IDR), is not convertible outside of
the country. Onshore conversion between
IDR and foreign currencies is subject to
exchange controls. Some IDR transactions
above IDR 500 million require supporting
documents; for example, nonresident
companies (e.g., rep offices) must provide
documentation on the nature of their
transactions when they collect payment
in IDR.
Electronic Banking
The use of electronic banking is becoming
more common. Internet banking is not widely
used, since Indonesia is still working to
strengthen its broadband network.

HISTORY OF JPMORGAN
1973 JPMorgan Chase Bank
takes a principal equity
interest in new merchant
bank P.T. Indonesian
Investments International
(Indovest) to aid
economic development.

1989 JPMorgan Chase Bank

arranged the first crossborder acquisition
between Korea and
Indonesia, P.T. Kyung
Dong Indonesia.

1991 JPMorgan Chase Bank

Manhattan Asia acts as
co-lead manager in
$750MM syndication for
expansion of Pertaminas
liquid natural gas facilities
in Kalimantan.

The content intends to be a summary matter (and is subject to change without notice) and for your general information only.
JPMorgan makes no representation or advice as to the legal, regulatory or tax implications of the matters referred herein.

1998 JPMorgan is appointed

one of the international
advisors to the Indonesian
Bank Restructuring Agency
to assist in revamping
Indonesias banking
sector.

Domestic Electronic Payment

Clearing Systems
The BI-RTGS system processes high-value
electronic payments. The National Clearing
System (SKNBI), operated by Bank Indonesia,
processes low-value electronic payments.
Low-value payments have net settlement.
Payments
Check is a common business-to-business
payment method, as is bilyet giro, a paperbased instrument similar to a check but
not cashable. Payments to vendors are
increasingly electronic. Companies typically
make tax payments electronically.
Liquidity Management
Banks pay credit interest on accounts.
Physical cash concentration for IDR is
permitted in-country. Cross-border
sweeping and notional concentration is
permitted within regulatory guidelines.
Working capital facilities are restricted
for nonresidents.

Condential and proprietary to JPMorgan. 2008 JPMorgan Chase & Co. All Rights Reserved. JPMorgan Chase Bank, N.A. Member FDIC. Produced by TSS Global Marketing.

Robust investment in country capabilities and expansive banking-network connectivity

to ensure nationwide coverage that satisfies client needs

A full suite of cash management services to support to our Indonesia-based clients, including
new and innovative solutions to enable banking network connectivity
Account Services

JPMorgan in Indonesia: Cash Management Capabilities

All services listed are available in IDR, except where other currencies are indicated.
JPMorgan provides daily in-country customer service support to our clients in English and Indonesian.
LIQUIDITY MANAGEMENT

PAYABLES AND RECEIVABLES MANAGEMENT

Over-the-Counter Cash Services

Available nationwide in IDR and USD.

High-Value Electronic
Payments and Receipts
Process IDR via direct access to the BI-RTGS
system, which allows JPMorgan to pay and
receive nationwide. Pay and receive in
foreign currency through SWIFT for
settlement abroad.

Low-Value Electronic
Payments and Receipts
Process IDR via direct access to SKNBI,
which allows JPMorgan to pay to and
receive nationwide. Clients typically make
payroll using low-value bulk electronic
payments.

FX Trading
Receive active quotes and execute trades,
including IDR spots, forwards and FX
swaps, and foreign currency-to-foreign
currency onshore conversion.

JPMorgan in
Indonesia: Trade
and Card Services

Check Payments
Take advantage of this innovative payment
service, whereby JPMorgan prints bank
checks in IDR or USD and delivers them by
courier to your beneficiaries. This solution
eliminates the need to issue checks in the
regional clearing district where a
beneficiary (e.g., vendors) is located.

On-Site Cashier
JPMorgan sends an armoured carrier to
your premises to establish on-site over-thecounter banking services.

Cash Concentration
Physical cash concentration for IDR is
permitted in-country. Cross-border sweeping
and notional concentration are permitted
within regulatory guidelines.

Interest-Bearing Accounts
Earn credit interest on savings accounts.

Time

Deposits
Term funding for clients with longer-dated
liquidity.
Working Capital Facilities
Casual and arranged facilities are offered
within regulations.

Foreign Currency Payments

Pay to and receive payment from offshore
beneficiaries in multiple currencies.

Tax Payments

ELECTRONIC BANKING: JPMORGAN CHANNELS

Choice of platforms and communication

channels for initiating domestic and crossborder transactions, monitoring banking
activities, and for managing information
reportingaccessible from within
Indonesia or from anywhere in the world.

Make import tax and nonimport tax

payments to anywhere in Indonesia. We
can pay via direct link to the Jakarta tax
authority.

JPMorgan ACCESSSM
Initiate Web-based electronic payments
and receive information reporting.

PaySourceSM
Initiate bulk files via host-to-host
connection for both local and foreign
currency payments, supporting several
industry standard formats.

TRADE FINANCE, SUPPLY CHAIN AND LOGISTICS SERVICES

Classical Trade
Issue, advise, confirm and negotiate
letters of credit (LC), handle documentary
Domestic and cross-border collections, provide import and export
services are available in
loans, purchase bills, handle document
respective IDR and foreign preparation, and provide standby LCs
currencies, subject to
and guarantees.
exchange controls.

Structured Trade
Export Credit Agency (ECA)-covered
financing, bill of exchange purchase,
pre- and post-export financing, trade
loan structures, risk participation using
syndicated trade facilities or other
techniques, and the discounting of
payment obligations.

The content intends to be a summary matter (and is subject to change without notice) and for your general information only.
JPMorgan makes no representation or advice as to the legal, regulatory or tax implications of the matters referred herein.

COMMERCIAL CARD SERVICES

Global Supply Chain

Provide supply chain financing
both buyer-supported and suppliersupportedto address working capital
issues tied to the growth of open
accounts. Leverage electronic trade
platforms, such as TradeCard, that
enable exporters to prepare documents
electronically to minimize discrepancies
and accelerate cash flow.

Commercial Card Program

Track T&E expenses more efficiently
for employee business travel.
Offered in alliance with United
Overseas Bank.

Condential and proprietary to JPMorgan. 2008 JPMorgan Chase & Co. All Rights Reserved. JPMorgan Chase Bank, N.A. Member FDIC. Produced by TSS Global Marketing.

JPMorgan offers current accountsfor operating requirementsand interest-bearing savings accounts in the local currency and multiple foreign currencies.