Member's Duties
As a member of the deposit insurance program, all banks that operate in Indonesia are obliged to:
a. | Submit the following documents: | |||||||||
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b. | Payment of membership contribution. | |||||||||
c. | Payment of insurance premium. | |||||||||
d. | Submit Insurance Premium Calculation covering: | |||||||||
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e. | Submit reports periodically covering: | |||||||||
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f. | Submit the notification on change of address | |||||||||
g. | Prominently display the Bank's membership in IDIC within the premises of the bank that can be easily seen by public. |
A. MEMBERSHIP DOCUMENTS
1. | Banks are required to provide documentary proof of establishment to IDIC in the form of a copy of the bank's Articles of Association and/or the bank's Deed of Establishment that details the current directors, commissioners, and shareholders structure as well as shareholder composition. |
2. | Bank Licenses that are required to be submitted comprise of a copy of the Banking Supervisory Institution's decree concerning the granting of the bank's license. |
3. | The Bank's establishment documents and license, as stated in the above-mentioned points 1 and 2, must be submitted to the Indonesia Deposit Insurance Corporation (IDIC) no later than 30 (thirty) calendar days upon the date in which the license is obtained. |
4. | The statement of the bank's financial soundness rating that is required to be submitted involves the statement letter from the Bank Supervisory Institution regarding the bank's financial soundness rating that includes key financial ratios and the status of the bank's supervision. |
5. | The statement on the bank's financial soundness rating as referred to in point 4 must be submitted to IDIC no later than 4 (four) months upon date of approval for the bank's license is obtained. |
6. | The Statement Letter that are required to be submitted from the bank's Directors, Commissioners and shareholders is in the form of a statement letter from the shareholders, controllers (for banks that are deemed a cooperative legal entity), head offices of branches of foreign banks, Directors and Commissioners whose format and content are established and specified within the Appendices of IDIC's regulation No. 2/PLPS/2010: |
Appendix 1: Statement Letter of Individual Shareholder; | |
7. | The Statement Letters of Directors, Commissioners, Shareholders and Controllers (for banks that are deemed to be a cooperative legal entity) must be submitted to IDIC no later than 30 (thirty) calendar days after the appointment of such Directors, Commissioners, Shareholders or Controllers in accordance with the Bank Supervisory Institution's regulations. |
8. | The Statement Letter from the head office of a foreign bank branch must be submitted to IDIC no later than 30 (thirty) calendar days upon the said bank's receipt of the license to open branches from the Bank Supervisory Institution. |
B. MEMBERSHIP CONTRIBUTION
1. | Every bank is required to pay a membership contribution upon acceptance as a deposit insurance member. |
2. | The membership contribution is determined to be 0.1% (one over a thousand) of paid-up capital and must be paid to IDIC's account no later than 3 (three) months upon approval of the said bank's license from the Bank Supervisory Institution. |
3. | The paid-up capital for a branch of a bank domiciled abroad is determined to be the bank's capital as stipulated within the capital adequacy requirement requirements established by the Bank Supervisory Institution. |
C. PREMIUM CALCULATION AND PAYMENT
1. | The insurance premium is paid 2 (two) times a year for: | ||||||||||||
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2. | The premium for each period is determined to be 0.1% (one over a thousand) from the average monthly balance of total deposits within each period. | ||||||||||||
3. | The total deposit also includes deposits from other banks. | ||||||||||||
4. | Premium payment for each period is carried out through the following stages: | ||||||||||||
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5. | The premium for each period shall be paid no later than: | ||||||||||||
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6. | The premium adjustment is carried out through the following stages: | ||||||||||||
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7. | Surplus derived from a premium payment shall be used for subsequent premium payment, unless the respective member bank requests that the surplus is used for payment of any outstanding fine owed to IDIC. | ||||||||||||
8. | The first premium payment for a bank that has just obtained a banking license is as follows: | ||||||||||||
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9. | In the event that the banks are merged prior to the end of a period, therefore: | ||||||||||||
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10. | To calculate the average monthly balance of all deposits, bank liabilities that are denominated in foreign currencies shall be converted first into Rupiah by using the rate that the bank used when submitting the monthly report to Bank Supervisory Institution in accordance with the provisions established by the Bank Supervisory Institution. | ||||||||||||
11. | In the case of commercial bank, premium shall be paid to IDIC's account at Bank of Indonesia: | ||||||||||||
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12. | In the case of rural bank, premium shall be paid to IDIC's account at Bank Rakyat Indonesia: | ||||||||||||
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13. | The Bank submits the premium to IDIC by using the format as per Appendix of IDIC's regulation and shall attach a copy of proof of transfer (transfer advice). | ||||||||||||
14. | Premium calculation for either premium at the beginning of a period or premium adjustment is carried out by the bank itself (self assessment). |
Example of Insurance Premium Calculation
D. SUBMISSION OF PERIODIC REPORTS:
1. | Deposits Status Report, | ||||||||||||||||||||||||
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2. | Monthly Financial Report, | ||||||||||||||||||||||||
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3. | An audited Annual Report or financial statements submitted annually to the Bank Supervisory Institution by rural banks who are not required to submit an audited Annual Report, should be submitted no later than 31 May of the following year. | ||||||||||||||||||||||||
4. | Report on structure of bank directors and commissioners, each time there is an amendment on the structure, must be submitted to IDIC at the latest 1 (one) month after the structure amendment by the General Shareholders Meeting or others equivalent to that. | ||||||||||||||||||||||||
5. | A Report on the bank's shareholder structure must be submitted to IDIC at any time when there are changes to the controlling shareholding of the bank. The report should be submitted no later than 1 (one) month after the changes in shareholder structure has been approved by the bank's General Meeting of Shareholders or its equivalent. | ||||||||||||||||||||||||
6. | Report on the controlling structure of a bank that is legally deemed to be a cooperative, in the event that there are changes to the structure. The report must be submitted to IDIC no later than 1 (one) month after the amended structure is approved by the General Meeting of Shareholders or others equivalent. | ||||||||||||||||||||||||
7. | Report on changes to the bank's address must be submitted to IDIC at the latest 1 (one) month after the amendment by the General Shareholders Meeting or others equivalent to that. |