M E T A D A T A

BASIC INFORMATION
1 2 3 4 Contact 5 6 7
Telephone Facsimile Data Category Statistics Disseminator Address

Email

: Monetary Operation Directorate of Economic and Monetary : Statistics (DSM) Bank Indonesia : Jl. M.H. Thamrin No. 2 Jakarta 10350 : Settlement, Information and Administration Division Directorate of Monetary Management : 62-21-3818361, 62-21-3817810 : 62-21-2310171 : milis-seki@bi.go.id

DATA DEFINITION
Money Market Transaction is a short-term financial transactions (less than 1 year), which includes the issuance of Bank Indonesia Certificates (SBI), the issuance of Bank Indonesia Sharia Certificates (SBIS), Deposit Facility, Bank Indonesia Sharia Deposit Facility (FASBIS), Term Deposit, Repo, Inter-Bank Money Market (PUAB) and Inter-Bank Sharia Money Market (PUAS) Monetary Operation is the implementation of monetary policies by BI in terms of monetary management through open market operations and standing facilities. Open Market Operation (OMO) is transactions in money markets conducted by BI with Banks and/or other parties in terms of Monetary Operation. Bank Indonesia Certificates (SBI) is securities in Rupiah currency issued by Bank Indonesia as the acknowledgement of short-term indebtedness. Term Deposit is deposit of rupiah funds owned by OMO Participants as term deposit with Bank Indonesia. Repurchase Agreement (Repo) is transaction on the sale of Securities by OMO Participants to BI, with the re-purchase obligation by OMO Participants according to the agreed upon price and period. Reverse Repo is transaction on the sale of Securities by OMO Participants from BI, with the re-sale obligation by the OMO Participants according to the agreed upon price and period. Deposit facility is placement of rupiah funds by Banks at BI in the context of Monetary Operations for a period of 1
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(one) business day. Lending Facility (LF) is provision of rupiah funds from BI to Banks in terms of Monetary Operation for a period of 1 (one) business day. Sharia Monetary Operation (OMS) is the implementation of monetary policies by BI in terms of monetary management through open market operations and standing facilities under sharia principles. Sharia Open Market Operation is transactions in money markets based on sharia principles conducted by BI with Sharia Commercial Banks and Sharia Business Units and/or other parties in terms of Sharia Monetary Operation. Bank Indonesia Sharia Certificate (SBIS) is a short-term rupiah denominated securities based on sharia principles issued by BI. Sharia Deposit Facility (FASBIS) is a placement of rupiah funds by sharia bank and sharia business unit at BI in the terms of Sharia Monetary Operation for a period of 1 (one) business day. Financing Facility is provision of rupiah funds from BI to sharia bank and sharia business unit in terms of Sharia
Monetary Operation for a period of 1 (one) business day.

Interbank Money Market (PUAB) is a lending borrowing activity in Rupiah and/or foreign currency among conventional banks with a maturity of up to 1 (one) year. PUAB consists of Rupiah PUAB Morning Session, Rupiah PUAB Afternoon Session, foreign exchange PUAB
Sharia Interbank Money Market (PUAS) is a short-term financial transaction among banks conducting business based on sharia principles either in rupiah or foreign currency

Before July 2010 : Money Market Transaction is financial transaction in short-term period (less than 1 year), that includes Certificate of Bank Indonesia (SBI), Certificate of Bank Indonesia Sharia (SBIS), Bank Indonesia Deposit Facility (FASBI), Bank Indonesia Sharia Deposit Facility (FASBIS), Fine Tune Operation (FTO), Inter-Bank Money Market (PUAB) and Sharia Inter-Bank Money Market (PUAS) SWBI is the evidence of Wadiah Depositing Fund. Wadiah Depositing Fund is depositing fund in short-time period which is using Wadiah Principle provided by Bank Indonesia for Sharia Bank or Sharia Business Unit (UUS). Wadiah is an agreement of depositing fund between the owners of funds with the party that receives the deposit which is trusted to maintain the fund. Since April 2008, SWBI no
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more exist and have been changed to Sharia Certificate of Bank Indonesia (SBIS) Bank Indonesia Rupiah Deposit Facility (FASBI) is a facility provided by Bank Indonesia for Banks to place their funds in Bank Indonesia. Fine Tune Operation (FTO) is a transaction in the context of OMO performed ad hoc by Bank Indonesia as necessary to affect banking liquidity in the short term at the transaction time, amount and price set forth by Bank Indonesia.

DATA COVERAGE
Coverage : The OMO outstanding and money market transactions consist of: SBI (In period of 1, 3, 6 and 9 month) Term Deposit Repo Reverse Repo Deposit Facility Lending Facility SBI Repo SBIS (In period of 1,3, 6 and 9 month) FASBIS Financing Facility SBIS Repo PUAB in Rupiah and Foreign Currency (over night of morning session, over night of afternoon session, all maturity of morning session, all maturity afternoon session) PUAS (over night and all maturity) Before July 2010 : The position data of OPT and Money Market Transaction consist of: SBI (In period of 1, 3, and 6 month) SBIS (In period of 1 month) SBI Repo SBIS Repo SWBI FASBI (overnight) FTO (Contraction and Expantion ) PUAB in Rupiah and Foreign Currency (over night of
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morning session, over night of afternoon session, all maturity of morning session, all maturity of afternoon session) PUAS (over night and all maturity)

Unit : Billion and Thousand Currency : Rupiah and USD

PUBLICATION PERIODICITY
Monthly

TIMELINESS
6 (six) weeks after the reference period (website) 7 (seven) weeks after the reference period (for printed matter) CD and

ADVANCE RELEASE CALENDAR (ARC)

ARC (attached) will disclose every year by December.

SOURCE OF DATA
Bank Indonesia (BI) : LBU, LHBU, BI-SSSS

METHODOLOGY
The data recording process are : Recording process - The data of SBI, Term Deposit, Repo, Reverse Repo, Deposit Facility, Lending Facility, SBI Repo, SBIS, FASBIS, Financing Facility, and SBIS Repo are obtained from BI-SSSS Information System. - The data of PUAB and PUAS are obtained from LHBU that delivered by Reporting Bank to BI online through extranet. Data submitted by the banks are entered to the OLTP (Online Transaction Processing) server after being validated for data accuracy. The business validations are done by the system based on parameter settings. Those Parameter Settings previously have been set especially for transactional data. Some data need to be confirmed to the relevant bank for validity and related to the sanction imposed. Data that has
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passed technical validation will be automatically moved to the portal. All data entered to the portal can be accessed directly by the users and BI through EDW, which is including the aggregated data, the detailed data by each Banks and inter-bank transaction data. Rupiah PUAB Morning Session is started at 07.00 WIB 12.00 WIB, PUAB Afternoon Session at 12.00 18.00 WIB and Foreign exchange PUAB at 07.00 WIB - 18.00 WIB.

Calculation Method SBI SBI is Issued and traded with discount system, SBI cash value is calculated based on true discount with formula as follows: Cash Value
= Nominal Value x 360 360 + (Discount Rate x Time Period)

Discount Value = Nominal Value Cash Value The outstanding of SBI is monthly total nominal value of SBI. Term Deposit Term Deposit transaction conducted through auction mechanism with fixed or variable rate tender method. Transaction of cash value term deposit is calculated based on true discount with formula as follow:
Cash Value = Period ) Nominal Value Term Deposit x 360 360 + ( Discount Rate x Time

Discount Value = Nominal Value Term Deposit Cash Value The outstanding of Term Deposit is monthly total nominal value of Term Deposit. Repo The repo transaction is conducted with sell and buy back principle. It is conducted through an auction mechanism with a fixed or variable rate tender method. The outstanding of Repo is monthly total nominal value of Repo.
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Reverse Repo The Reverse Repo is conducted with sell and buy back Principle. Reverse Repo is transaction conducted through an auction mechanism with a fixed or variable rate tender method. The outstanding of Reverse Repo is monthly total nominal value of Reverse Repo.

- Deposit Facility The outstanding of Deposit Facility is monthly total nominal value of Deposit Facility. Lending Facility The outstanding of Lending Facility is monthly total nominal value of Lending Facility. SBI Repo The SBI repo transaction is conducted with sell and buy back principle. The outstanding of SBI Repo is monthly total nominal value of SBI Repo. SBIS The outstanding of SBIS is monthly total nominal value of SBIS. FASBIS The outstanding of value of FASBIS. FASBIS is monthly total nominal

Financing Facility The outstanding of Financing Facility is monthly total nominal value of Financing Facility. SBIS Repo The outstanding of SBIS Repo is monthly total nominal value of SBIS Repo. PUAB PUAB Overnight (O/N) transaction is monthly transaction with 1 day maturity The all maturity PUAB transaction is monthly transaction with all maturity. PUAB PUAB

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PUAS Transaction PUAS transaction is monthly PUAS transaction with all maturity.

DATA INTEGRITY
The data are final when first disseminated. Changes in methodology are noted along the data with the new methodology published for the first time.

PUBLIC ACCESS TO DATA

Data are disseminated on: BI Website http://www.bi.go.id/web/id/Statistik/Statistik+Ekonomi+dan+ Keuangan+Indonesia/Versi+HTML/Sektor+Moneter/ Indonesian Financial Statistics (SEKI) Publication (printed matters and CD)

Data can also be acquired from: SDDS/IMFs Website (http://www.bi.go.id/sdds). BPS` Website (http://www.bps.go.id/)

What is a repurchase agreement (Repo)? A repo transaction involves two parties, the buyer and the seller. There are two exchanges that occur. One is at the start of the trade, the other is at maturity. At the start, the seller delivers collateral, normally bonds, to the buyer. In return the buyer simultaneously pays cash to the seller. That amount is equal to the market value of the collateral, this includes any accrued interest, (see diagram 1). On the maturity date the buyer returns the collateral to the seller. Simultaneously the seller repays the original cash amount to the buyer plus a sum of interest for being able to use the cash. The interest rate that is used is called the repo rate. The repo rate is normally calculated on a money market basis, actual/360, (see diagram 2). When dealers enter into a repo trade they agree the terms of the deal. These include the collateral involved, the maturity of the trade, (normally these trades are short term from 1 day to 3 months in maturity), the cash amount and the repo rate. During the life of the transaction the market risk and the credit risk of the collateral remain with the seller. (Because he has agreed to repurchase the asset for an agreed sum of money at maturity). Provided the trade is correctly documented if the collateral has a coupon payment during the life of the repo the buyer is obliged to pay this to the seller.

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During the life of the trade the buyer can use the collateral for delivery or repo purposes. And if the seller fails to return the cash the buyer can look to the collateral for repayment. Click to find out more

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Why do dealers do repo trades? Simply because there is both the demand for borrowing the collateral and there is supply of that collateral. The motivations are as follows: When dealers want to take advantage of falling prices they sell something they don't have. They anticipate that they will buy it back at a later date for a lower price and make a profit. This is called going short. If you short sell you need to deliver the security you have sold to the buyer. But you don't have it! You therefore need to borrow it. This means becoming a buyer in a repo trade. (Technically this is called a reverse repo). The repo means you can temporarily borrow the security and use it to make delivery, (see diagram 3). If you are right and prices fall you can buy back the security at a lower price and deliver it to your repo counterparty on the maturity of the repo. You will have profited from the fall in the price of the collateral. Why would you want to lend the collateral? When dealers or portfolio managers own bonds they can use them as collateral for borrowing cash, (like a secured loan). The repo rate may well be a few basis points lower than normal money market rates. Sometimes it is much lower. Repo can therefore be a useful tool for liquidity management. General & special collateral rates The repo rate normally trades closely to money market rates. This is sometimes referred to as the general collateral rate. But sometimes a particular security is in demand for borrowing purposes. This is because there are many dealers who have gone short of that security. In this situation the cost of borrowing the security increases and depending on supply and demand conditions the repo rate can fall significantly. It can end up several percentage points beneath the prevailing money market rates. And in extreme situations a negative repo rate can occur. When the repo rate for a specific security falls like this the repo rate is called a special rate. Special repo rates mean that the individual security is expensive to borrow for dealers who are short. But for those who are long there is a windfall gain. They can borrow cash at rates well below money market rates and make a simple profit by redepositing it at the prevailing money market rates. Haircuts Haircuts are the repo market's way of imposing a margin on the collateral seller. Here is a simple example. Suppose a haircut of 2% is applied to a repo trade where the market value of the collateral is $10m. The seller only receives $9.8m from the buyer and the repo interest is calculated on $9.8m. Why do haircuts exist? Because some bonds are more risky than others. The buyer will look to the collateral for repayment should the seller default. If the collateral has a volatile price history the buyer is

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at risk. The collateral may fall in price at the very time it is being relied on. To reduce this risk a haircut is imposed. Buy/sell back transactions Buy/sell back transactions are identical to repo transactions in terms of the collateral movements and cash flows. They differ in that the trade is structured as a spot purchase and a forward sale of the collateral. This means that instead of the transaction being based on an interest rate, (the repo rate), it is based on a spot price at which you buy the collateral and a forward price at which you sell the collateral. Diagram 1 - start Trade details: Principal: Bond Repo Repo Term: 7 days $10,000,000 100% $10,000,000 Actual/360

rate:

price: principal:

5.00%

Diagram 2 - maturity Trade details: Principal: Bond Repo Repo Repo interest: $9,722.22 $10,000,000 100% $10,000,000 Actual/360

rate:

price: principal:

5.00%

Diagram 3 - using a repo in a short sale Dealer sells bond and must deliver Dealer enters reverse repo to obtain bond for delivery To close the repo trade the dealer must eventually buy the bond in the market

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Click to find out more

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