Emerging Markets Rates and Currencies Handbook

Underlying documents which are forecasted in nature: • Copy of PIB (Notice of Imported Goods) or PEB (Export Declarations). • Purchase order confirmation with proof of goods delivery (proof of goods delivery can be submitted post settlement date if not available on settlement date). Final invoice must be submitted no later than the settlement date to cover the purchase order (PO) and proforma invoice. • Cash Flow projection (Forecast) for international trade and travel agent service for 1 year period which shows the net foreign currency exposure on a monthly basis. Forecast must be accompanied by: (a) additional supporting document in form of invoice, working contract, MOU, or other similar document, (b) historical data for the previous 1 year, (c) client’s track record. Capital Flow and FDI Underlying documents which are final in nature: - Proof of ownership of investment including proof of purchase or sale in relation to investment in stock, bonds, other securities, proof of dividend payment and other investment proceeds. - Requirement to fulfill the balance on account by the authority. - Bank guarantee in foreign currency. - Loan agreement with proof of disbursement (account statement or MT103 proof of transfer). - Board resolution that reflects the amount of dividends to be paid out to foreign party shareholders. - Mutual fund investment contract in foreign currency. Underlying documents for sale of FCY against IDR: - Ownership of foreign currency deposit onshore or offshore in the form of savings, checking account, deposit, and Negotiable Certificate of Deposit (NCD). Underlying documents which are forecasted in nature: • Cash Flow projection (Forecast) which is related to certain project with tenor 3 years forward from the date have outstanding offshore loans or trade payables in foreign currencies are subject to the following regulations: • Hedging ratio (to be done on at least 25% of Net FCY Liabilities. Tenor buckets: 0-3 mo and 3-6mo. Net FCY Liabilities are FCY Liabilities — FCY Assets). • Liquidity ratio ((Asset + Hedging)/Liabilities in 0-3mo bracket >70% from 2017 onwards). • Corporate credit ratings need to be > BB-. Rating requirements are relaxed for inter-co borrowing and only applies to direct lending (e.g. excluding trade loans). If the offshore loan is from the parent or guaranteed by the parent, the parent’s rating may be used instead. Effective 1 July 2015, all cash and non-cash transactions conducted within the territory of the Republic of Indonesia must be made in Rupiah. Effective 1 Nov 2016, all outgoing foreign currency transfers with amounts >USD 100,000 equivalent must be accompanied with supporting documents. Exemptions apply for transfers into own account for the purpose of deposit placement within the domestic market or transfer for Bank’s own transaction. “Foreign Parties” mean: a. Foreign citizens (including those who have stay permits or resident permits in Indonesia); b. Foreign corporations or other foreign agencies (but do not include: (i) branch offices of banks domiciled overseas, (ii) foreign direct investment companies (PMA), or (iii) foreign corporations or agencies with non- profit activities); c. Indonesian citizens with permanent resident status of another country and are not domiciled in Indonesia; d. Overseas Banks’ offices of Banks having their head offices in Indonesia**; or e. Overseas companies’ offices of companies incorporated in Indonesia. **Banks are Commercial Banks as referred to in the Law regulating banking, and Sharia Commercial Banks and Sharia Business Units as referred to in the Law regulating sharia banking, including branch offices of banks domiciled overseas but excluding offices of Commercial Banks and Sharia Commercial Banks incorporated in Indonesia and operating overseas. of the transaction, signed by the authorized person of the client to be submitted along with the contract of the project. Additional Comments All agencies for offshore financial products need to be registered and approved by Bank Indonesia. Effective 1 January 2015, Non-Bank Corporations who Citibank N.A. Indonesia Citibank Tower 10th Floor Pacific Century Place SCBD Lot 10 Jalan Jenderal Sudirman Kav. 52-53 Jakarta 12190, Indonesia FX Sales Contact: +6221 5290 8918