The Bank of Indonesia turned on its paperless settlement system for government bonds today. The new settlement system (S4) is an online settlement system developed in-house by the central bank.
It replaces the previous Book-Entry Registry (BER) system. With S4, custodian banks are now connected online with BI and all settlement instructions can be inputted directly to the client’s server at each custodian’s site. The BER system required manual intervention, with physical submission of settlement instruction forms.
S4 also has the capability to show the status of each transaction, whether they have already matched, settled, or remain unmatched.