Domestic Non- Deliverable Forward (DNDF)

Forward value hedging transactions with netting settlement for your business needs

Hedging Instrument

Alternative hedging instrument for customer

Transaction Settlement by Netting

No need to provide the fund as per nominal transaction value on the settlement date

FX Risk Protection

Protection against foreign currency exchange risk

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Forward value hedging transactions with netting settlement for your business needs

    Other Information

    Requirements

    Disclaimer

I. Product Description

Domestic Non- Deliverable Forward (DNDF) is an alternative hedging transaction that can be used by customers who have exchange rate risk. DNDF transactions are foreign exchange derivative transactions against the rupiah in the form of forward transactions with a fixing mechanism conducted on the domestic market with the transfer of funds made within more than 2 (two) working days after the date of the transaction

Fixing Mechanism is a transaction settlement mechanism without the movement of principal funds by calculating the difference between the Forward Transaction rate and the reference rate on a certain date specified in the contract (fixing date)

All DNDF transactions must be accompanied by an underlying document except for foreign exchange sales transactions through DNDF with a nominal value of up to USD 5,000,000.00 or its equivalent per transaction for each customer

II. Product Simulation

Example of DNDF Transaction:

  1. Profit Calculation Scenario
    The customer makes a DNDF purchase transaction of USD 1,000,000 for a period of 1 month at an exchange rate of USD / IDR 14,000. On the fixing date, the JISDOR reference rate is IDR 14. 100. Thus, customers will get a foreign exchange difference of IDR 100,000,000 where the exchange rate difference comes from (IDR 14,100 - IDR 14,000) x USD 1,000,000

  2. Loss Calculation Scenario
    The customer makes a DNDF purchase transaction of USD 1,000,000 for a period of 1 month at an exchange rate of USD/IDR 14,000. On the fixing date, the JISDOR reference rate is IDR 13,900. Thus, customers will pay a foreign exchange difference of IDR 100,000,000 where the exchange rate difference comes from (IDR 13,900 - IDR 14,000) x USD 1,000,000

  3. Standard Calculation Scenario
    The customer makes a DNDF purchase transaction of USD 1,000,000 for a period of 1 month at an exchange rate of USD / IDR 14,000. On the fixing date, the JISDOR reference rate is IDR 14.000. Thus, no settlement on the value date.

III. Risk of Product and Other Information
  1. Market Risk
    Risks arising from movements in the value of currencies where the Customer can suffer losses if from the moment the position is opened until the transaction settlement date, the currency value always moves against the customer's expectations

  2. Customer transaction cannot be roll over or early termination. The transaction can only be un wind

IV. Facility / Channel

Transaction can only be performed with Treasury Advisory or contact the Relationship Manager (RM) for more information related to this product

V. Complaint Procedure

Customers can submit complaints related to products through:

  1. Call OCBC NISP di 1500 – 999 (domestic call) atau 021-26506300 (overseas call)
  2. Contact Relationship Manager (RM)
  3. Email to callcenter@ocbcnisp.com
  4. Click www.ocbcnisp.com
Terms and Condition
  1. Must have an account at Bank OCBC NISP
  2. Sign an FX Agreement
  3. The customer must submit underlying documents for all nominal DNDF transactions in the form of foreign exchange purchases and foreign currency sales with a value above USD 5,000,000
  1. You hereby acknowledge that you have read, received explanation and understood the product and/or service as specified in this Summary of Product and/or Service Information (“Summary”) and have informed, understood and accepted any consequences of product and/or service including all inherent benefits, risks and costs.
  2. This Summary is intended only as an information and does not aim to be a basis for investment decisions. Past performance is not an indication of future performance. Any proposal documents for investment related products, must be studied further. Any projections, opinions or other statistical facts displayed in this information are only an indication and are not guaranteed in any form. You must determine your own decisions in accordance with the needs and investment strategies by considering legal, tax and accounting issues. Based on good intentions and moral responsibility, Bank OCBC NISP and each of its employees are not responsible for any direct or indirect losses, or as a consequence arising from the use of and dependence on this information in an investment decision.
  3. Bank OCBC NISP reserves the right to reject your product and/or service application if it does not fulfil the requirements and the application of laws and regulations.
  4. You have to carefully read this Summary and contact Bank OCBC NISP if there are further queries in respect of the product and/or service contained in this Summary.
  5. This Summary has been adjusted to be in accordance with the provisions of regulations including the regulations of Financial Service Authority.

This Summary is made in English and Bahasa Indonesia, and in the event of inconsistency between the version, Bahasa Indonesia shall prevail.

PT Bank OCBC NISP Tbk terdaftar dan diawasi oleh OJK dan merupakan peserta penjamin LPS

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