Market Linked Deposit (MLD)

100% Protection of Principal Amount

This product is ideal for Customers who want 100% protection on their Principal Amount if the product be held until maturity and obtain a higher rate of return compared to conventional time deposits.

Types of MLD Options

One Touch European Style

The maximum investment return is achieved if the Option reaches the upper/lower limit within the specified date and time.

No Touch European Style

The maximum investment return is achieved if the Option does not reach the upper/lower limit within the specified date and time.

Double No Touch European Style

The maximum investment return is achieved if the Option does not reach both the upper and lower limits set within the specified date and time.

MLD Features

8 Choices of Foreign Currencies (USD, AUD, SGD, EUR, CNY, GBP, JPY, NZD)

Subject to market conditions and offering from the bank.

Higher Potential Returns

Offers higher returns than regular time deposits.

Affordable Minimum Placement

Starts from USD 10,000 or equivalent.

Alternative of Short-Term Investment

Tenor up to 1 (one) year.

No Fees

No management or placement fees.

MLD Risk Exposure

Market Risk

The rate of return is dependent on the movement of the underlying financial instrument.

Liquidity Risk

It is not recommended to terminate MLD before maturity date. In the event of withdrawal before maturity, the Bank cannot guarantee a 100% return of principal including the ongoing interest payments on MLD placements.

Other Risk

- MLD cannot be automatically renewed
- MLD cannot be used as collateral for loans
- MLD is not guaranteed by the Deposit Insurance Corporation (LPS)

MLD Illustration

Customer joins MLD with below details:
Placement: USD 50,000
Currency: USD
Currency Pairing: AUD/USD
Spot: 0.6927
Lower Limit: 0.6897
Tenor: 3 months (=90 days)
Minimum Payout: 0.50% gross
Maksimum Payout: 2.70% gross
MLD Type: European One Touch
Payout Description:

If in the fixing date and time does not touch lower limit, then Customer get Minimum Payout
(0.50% gross per annum)
If in the fixing date and time touch lower limit, then Customer get Maximum Payout (2.70% gross per annum)

Scenario A
At fixing date and time, rate at 0.6917 → does not touch lower limit, then Customer get Minimum Payout.

Customer Earnings:
Placement Amount + ((Placement Amount x Payout Amount x (Tenor/365)) – Tax 20%)
= USD 50,000 + ((USD 50,000 x 0.5% x (90/365)) - Pajak 20%)
= USD 50,049.32 net

Scenario B
At fixing date and time, rate at 0.6887 → touch lower limit, then Customer get Maximum Payout.

Customer Earnings:
Placement Amount + ((Placement Amount x Payout Amount x (Tenor/365)) – Tax 20%)
= USD 50,000 + ((USD 50,000 x 2.7% x (90/365)) – Tax 20%)
= AUD 100,197.26 net
= AUD 100,197.26 x 0.6380 = USD 50,266.30 net

Dual Currency Investment (DCI)

High Return

This product is suitable for customers seeking substantial returns alongside a guaranteed rate of return.

You are eligible to invest in foreign currency with DCI if you:

Are an individual customer
Hold a portfolio of assets including cash, current accounts, saving accounts, and/or time deposits with minimum amount of IDR 5,000,000,000.00 (five billion rupiah) or its equivalent in foreign currencies
Have suitable risk profile for DCI

DCI Features

9 Currency Choices

Choices for placement in Rupiah and 8 foreign currencies (USD, AUD, SGD, EUR, CNY, GBP, JPY, NZD) with more than 21 currency pairing alternatives.

Higher Potential Return

Offers higher returns over conventional foreign currency time deposit.

Flexibility

Flexibility to choose the currency pair and establish an agreed target rate (strike price) at the placement date.

Defined Rate of Return

With a return on the principal value of the investment denominated in or alternative currency as per the exchange rate performance of the underlying currency at the date and time of determination.

Short-term Investment Alternative

Starting from 1 (one) week.

European Style Type

The determination of the placement result is determined on the date and time of determination.

DCI Risk Exposure

Market Risk

The final return on investment upon maturity is dependent upon the performance of the underlying currency pair.

Liquidity Risk

It is not recommended to terminate DCI before the maturity date. In the event of an early termination, the Customer will incur an early termination fee.

Other Risks

- DCI cannot be rollover automatically; every DCI placement is a new placement
- DCI cannot be used as collateral for loans
- DCI is not guaranteed by the Deposit Insurance Corporation (LPS)
- Customer investment at maturity date can be in base currency or converted to alternate currency, depends on the performance of underlying currency

DCI Illustration

Illustration for DCI Foreign Currency – Rupiah:

Customer join DCI with below details:
DCI Placement: USD 100,000
Base Currency: USD
Alternative Currency: IDR
Spot USD/IDR at Transaction Date: 14,850
Strike Price: 14,890
Tenor: 1 month (=32 days)
Rate of Return: 3% gross per annum
Tax: 20%

Scenario A
On the fixing date and time, Spot USD/IDR 14,870 → spot at fixing date and time does not reach strike price, then Customer will receive principal and return in USD.

Customer Earnings:
Placement Amount + ((Placement Amount x Payout Amount x (Tenor/365)) – Tax 20%)
= USD 100,000 + ((USD 100,000 x 3% x (32/365)) – Tax 20%)
= USD 100,210.41 net

Scenario B
On the fixing date and time, Spot USD/IDR 14,935 → spot at fixing date and time reach strike price, then Customer will receive principal and return in IDR.

Customer Earnings:
Placement Amount + ((Placement Amount x Payout Amount x (Tenor/365)) – Tax 20%)
= USD 100,000 + ((USD 100,000 x 3% x (32/365)) – Tax 20%)
= USD 100,210.41 net
= USD 100,210.41 x 14,890 = IDR 1,492,133,004.90 net

If the Customer in Scenario B directly sell the DCI result back to the original currency (USD), they will receive USD equivalent to: IDR 1,492,133,004.90 / 14,935 = USD 99,908.47

Illustration for DCI Foreign Currency – Foreign Currency:

Customer join DCI with below details:
DCI Placement: AUD 100,000
Base Currency: AUD
Alternative Currency: USD
Spot AUD/USD at Transaction Date: 0.6280/0.6287
Strike Price: 0.6380
Tenor: 1 month (=30 days)
Rate of Return: 3% gross per annum
Tax: 20%

Scenario A
On the fixing date and time, Spot AUD/USD 0.6250 → spot at fixing date and time does not reach strike price, then Customer will receive principal and return in AUD.

Customer Earnings:
Placement Amount + ((Placement Amount x Payout Amount x (Tenor/365)) – Tax 20%)
= AUD 100,000 + ((AUD 100,000 x 3% x (30/365)) – Tax 20%)
= AUD 100,197.26 net

Scenario B
On the fixing date and time, Spot AUD/USD 0.6400 → spot at fixing date and time does reach strike price, then Customer will receive principal and return in USD.

Customer Earnings:
Placement Amount + ((Placement Amount x Payout Amount x (Tenor/365)) – Tax 20%)
= AUD 100,000 + ((AUD 100,000 x 3% x (30/365)) – Tax 20%)
= AUD 100,197.26 net
= USD 100,197.26 x 0.6380 = USD 63,925.85

If the Customer in Scenario B directly sell the DCI result back to the original currency (AUD), they will receive USD equivalent to: USD 63,925.85 / 0.6400 = AUD 99,884.14

MLD and DCI Comparison

Feature	Return Rate	LPS Guarantee	Renewal/Roll-over	Disbursement Before Maturity	Placement Principal Protection	Proof of Placement
Market Linked Deposit	The rate of return provided is dependent on the performance of the underlying financial instruments.	Not guaranteed	Not renewable	Early termination is not allowed in principle	Principal placement is 100% protected if held to maturity	Confirmation letter of MLD participation
Dual Currency Investment	The rate of return is paid in accordance with the agreement on the Transaction Date and is payable at maturity.	Not guaranteed	Not renewable	Early termination is not allowed in principle	Does not provide protection of the principal placement value. The Customer at maturity may receive payment in primary currency or alternative currency.	Confirmation letter of DCI participation

Feature	Return Rate	LPS Guarantee	Renewal/Roll-over	Disbursement Before Maturity	Placement Principal Protection	Proof of Placement
Market Linked Deposit	The rate of return provided is dependent on the performance of the underlying financial instruments.	Not guaranteed	Not renewable	Early termination is not allowed in principle	Principal placement is 100% protected if held to maturity	Confirmation letter of MLD participation
Dual Currency Investment	The rate of return is paid in accordance with the agreement on the Transaction Date and is payable at maturity.	Not guaranteed	Not renewable	Early termination is not allowed in principle	Does not provide protection of the principal placement value. The Customer at maturity may receive payment in primary currency or alternative currency.	Confirmation letter of DCI participation

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