WORLD TRADE
ORGANIZATIONS/C/N/79
30 October 1998
(98-4340)
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 1996 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
1 March 1996
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. 28/122/KEP/DIR dated
5 January 1996 concerning Bad Cheque and Bilyet Giros.S/C/N/79
Page 2
Description:
- Bad Cheque or Bilyet Giro is a Cheque or Bilyet Giro rejected because of insufficient
funds during the period in which the drawer is required to have sufficient funds
available;
- Should customers draw a Bad Cheque or Bilyet Giro, the bank shall dispatch:
- The first warning letter for the first rejection of a Bad Cheque or Bilyet Giro;- The second warning letter to second rejection;
- Notice of account closure in case of:
- the drawing of 3 or more Bad Cheques or Bilyet Giros within a 6
month period;
- the drawing of 1 Bad Cheque or Bilyet Giro with a nominal amount
of 1 billion rupiahs or more;
- the publication of the customer's name in a current black list.
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/79
Page 3
1. Member Notifying:
Indonesia
2. Notification under:
GATS Article III, paragraph 3 (Transparency)
3. Date of entry into force
4 June 1996
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. 29/32/KEP/DIR, 4 June
1996 concerning Sale and Purchase of Foreign Exchange from Export Earnings.
Description:
- This decree shall apply to prime export product exported by priority exporter.  The
following definitions apply to the terms used in this decree.
(i) Priority exporter is an exporter who meets criteria determined by the Minister
of Industry and Trade;
(ii) Prime export product is an export product which meets the criteria determined
by the Minister of Industry and Finance.
- A usance draft to be discounted to Bank Indonesia shall have at least 15 days, and a
maximum 720 days to maturity.
- The discount rate on usance drafts sold to Bank Indonesia are set daily depending on
market rates, according to currency and classification of maturity.
6. Members specifically affected:
NoneS/C/N/79
Page 4
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/79
Page 5
1. Member Notifying:
Indonesia
2. Notification under:
GATS Article III, paragraph 3 (Transparency)
3. Date of entry into force
4 June 1996
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. 29/33/KEP/DIR dated
4 June 1996 concerning Payment of Import Transactions.
Description:
- Payment of import transactions may take place with or without a Letter of Credit.
- Payment of import transactions without Letter of Credit, may be carried out by:
- Advance payment;- Open account;- Collection;
- Consignment;
- Other form customary in international trade.
6. Members specifically affected:
NoneS/C/N/79
Page 6
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/79
Page 7
1. Member Notifying:
Indonesia
2. Notification under:
GATS Article III, paragraph 3 (Transparency)
3. Date of entry into force
31 December 1996
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. 29/150/KEP/DIR dated
31 December 1996 concerning Domestic Letter of Credits.
Description:
- The provision in this decree shall apply for the issuance of domestic L/C in case of:
- Bank, Applicant and recipient are domiciled in Indonesia;- Trading of goods is done in Indonesia.
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/79
Page 8
1. Member Notifying:
Indonesia
2. Notification under:
GATS Article III, paragraph 3 (Transparency)
3. Date of entry into force
31 December 1996
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. 29/151/KEP/DIR dated
31 December 1996 concerning Purchase of Foreign Exchange from Export Earnings from
Priority Exporters.
Description:
- A foreign exchange bank may sell (rediscount) Foreign Exchange from export
earning to Bank Indonesia on the basis of purchase of priority exporter claims in the
form of drafts or other form of claim.
- A usance draft to be discounted to Bank Indonesia shall have at least 30 days and a
maximum 720 days to maturity.
- The following definitions apply to the terms used in this decree:
- Priority exporter is an exporter who meets criteria determined by the Minister
of Industry and Trade;
- Prime export product is an export product which meets the criteria determined
by the Minister of Industry and Trade.
6. Members specifically affected:
NoneS/C/N/79
Page 9
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/79
Page 10
1. Member Notifying:
Indonesia
2. Notification under:
GATS Article III, paragraph 3 (Transparency)
3. Date of entry into force
3 December 1996
Duration:
Indefinite
4. Agency responsible for enforcement of the measure:
Ministry of Finance of the Republic of Indonesia, Bank Indonesia
5. Description of the measure:
Measure:
Government Regulation No. 68 dated 3 December 1996 concerning Provisions and
Procedures for Revocation of Bank Operation Li cence, Dissolution and Liquidation of Bank.
Description:
- Should Bank Indonesia finds a bank to be:
- experiencing difficulties endangering its operation and/or;- endangering the banking system.Bank Indonesia shall inform the Minister of Finance stating the matters indicating the
difficulties of the bank and the action to be taken by Bank Indonesia.
- Should the measures taken by a bank fail to overcome the difficulties faced by the
bank concerned, or the situation of the bank concerned is endangering the banking
system, Bank Indonesia shall issue a recommendation to the Minister of Finance to
revoke the operating licence of the bank.
- The revocation of the operating licence of a bank shall be undertaken by the Minister
of Finance after taking into account the recommendation of Bank Indonesia.
- A bank whose operating licence has been revoked shall convene a General Meeting
of shareholders to adopt a resolution for dissolution of the bank as a legal entity, and
for setting up of the liquidation team.
- If the provisions concerned are not complied with, the Minister of Finance upon
taking into account the recommendation of Bank Indonesia shall apply to a court for
the issuance of an order:S/C/N/79
Page 11
- to dissolve the bank as a legal entity;
- to appoint a liquidation team under a name proposed by 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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