For Qualified Sellers (Suppliers)
Who is the Qualified Seller, Buyer and Purchaser Member?
You are the Qualified Seller once approved by Komodo Cash, having executed the Qualified Seller Terms and Conditions and having provided a Buyer executed Standard Form Assignment. The Qualified Seller invoices a Buyer for goods and/or services bought, and the Buyer settles such invoices on the payment date stipulated in the RN. The Purchaser Member is a qualified investor who purchases the auctioned RN(s) from a Qualified Seller.
How do I register as a Qualified Seller with Komodo Cash?
All Qualified Sellers need to be an Indonesian institution or business entity in order to participate as a Qualified Seller. Before being eligible to operate on Komodo Cash, all Qualified Sellers are required to have been operating in good standing as a supplier on the TBXONE Unified Commerce Platform for no less than 6 months.
Click on the “Register” option shown on the top right corner of the Komodo Cash web-site and fill in the required information. After pre-registration approval, a supplier must complete the Qualified Seller Application Form and provide the supporting documentation requested therein. The Qualified Seller must also execute a copy of the Qualified Seller Terms and Conditions and provide the Facilitator with a Buyer executed Standard Form Assignment and details of an account with Bank Mandiri owned by the Seller to be used for the receipt and transfer of payments while using Komodo Cash.
Do I need to be a supplier of a Buyer who is already registered on the TBXONE Unified Commerce Platform?
Yes. Komodo Cash will only accept a supplier to a Buyer who is already utilizing the TBXONE Unified Commerce Platform.
Why do I need a Bank Mandiri Account?
The reason a Qualified Seller must register and use its Bank Mandiri account when using Komodo Cash is to ensure that all parties involved in a sale & purchase of invoiced receivables transaction are using a common gateway platform to make and receive payments associated with such transaction without transfer payment delay – which could be incurred using various banks.
What steps do I need to take with my Buyers to perform a RN auction?
Komodo Cash has made it simple for a supplier to engage its Buyer during the application stage. Each Buyer must execute a Standard Form Assignment (SFA). Once executed, the SFA will contractually obligate the Buyer to make all future invoice payments into the Komodo Cash Collection Account held at Bank Mandiri and to accept that its supplier may be selling RNs to Purchaser Members.
What fees do you charge a Qualified Seller for auctioning a RN?
Upon auction price settlement of each RN, there is a facilitation fee (1% of the winning bid price excluding VAT) and a transfer payment fee due to Komodo Cash (currently IDR 22,000 including VAT). Such amounts will be deducted from the auction proceeds transferred into the Qualified Seller’s Bank Mandiri account. Fees are subject to change with advanced written notice from Komodo Cash.
Is there a maximum amount and payment tenor for a RN I can sell on Komodo Cash?
Yes. All RN auctions must be in amount under IDR 1,000,000,000- (excluding VAT) and be with a Buyer payment tenor of 30 days or more, but less than 12 months.
How does an auction work?
After the Buyer sends a RN to a Qualified Seller, that Qualified Seller will have the option to initiate an auction by nominating such RN for auction. Bids on the RN will be accepted as a discount of the face value of the RN, excluding VAT. The auction process may take the form of a Public Auction, meaning that all Purchaser Members are allowed to view the RN auction details and, thereafter, request entrance from the Qualified Seller to participate in the auction; or a Private Auction, meaning that only Purchaser Members pre-selected by a Qualified Seller are allowed to view the RN auction details and participate in the auction.
Each auction tenor will last 3 calendar days, commencing at 1:00 PM Jakarta time on the first calendar day of nomination of the RN by the Qualified Seller and ending at 5:00 PM Jakarta time on the third calendar day. A Purchaser Member auction bid will remain active for the 3 days of the auction tenor, unless it is cancelled by the Purchaser Member who made the bid. If a Purchaser Member cancels its bid, and its bid was the low bid at the time of cancellation, it may not re-bid in the same auction. If a Purchaser Member is outbid by another Purchaser Member, it may place a new bid at a lower discount rate and its former bid will automatically be cancelled.
If the RN auction did not receive any bids during the auction tenor, the Qualified Seller has the right to re-nominate a RN with more than a 30 day payment term for auction 1 additional time as long as at least 25 calendar days remain before the date of RN payment by the Buyer.
How can I control the auction price of a RN I wish to auction?
All bidding in an auction on the Komodo Cash website is performed as a percentage discount of the face value of a RN excluding VAT. At the beginning of each auction, the Qualified Seller may set a maximum discount above which no bids can be registered, called the “Ceiling Rate”, which will be notified to the Purchaser Members.
Taking a very simple example, if a Qualified Seller chooses to auction a RN whose auction value is IDR 100,000,000- excluding VAT, and it sets the Ceiling Rate at 3.00% per annum, the minimum auction amount of the RN will be IDR 97,000,000-, with a maximum discount total of IDR 3,000,000-. If another Purchaser Member bids a discount rate of 2.50% during the auction, that bid will become the leading bid at a purchase price of IDR 97,500,000-, with a discount total of IDR 2,500,000-.
Anytime a Purchaser Member submits a bid or is outbid, a notification will be sent by Komodo Cash. If a Purchaser Member wins or loses an auction, it will also be notified, including settlement details in the case of a winning bid. A Qualified Seller’s full transaction history will be available on the Komodo Cash website dashboard.
Can I cancel an auction after it commences?
No. Once a Qualified Seller has nominated a RN for auction, it will remain on auction until the 3 days of the auction tenor have passed.
How long will it take to receive auction proceeds into my Bank account?
When the winning RN auction bid is paid by the Purchaser Member before 12:00 PM Jakarta time on the next business day following the end date of the relevant auction, the Qualified Seller will receive the winning bid price of the RN less Komodo Cash facilitation fee and transfer payment fee within 2 business days of receipt of such Purchaser member payment. Typically, for a successful 3 day auction, the RN sale process will take 6 days from the RN auction nomination date to the auction settlement date.
What happens if the Purchaser Member is late paying or doesn’t pay?
If a Purchaser Member makes payment for the purchase of an auctioned RN into the Komodo Cash Collection Account held by Bank Mandiri before 12:00 PM Jakarta time on the next business day after the end date of the relevant auction, such payment is made on-time.
If a Purchaser Member fails to make payment for the purchase of an auctioned RN into the Komodo Cash Collection Account held by Bank Mandiri before 12:00 PM Jakarta time on the next business day, but does make the payment before 12:00 PM Jakarta time on the second business day after the end date of the relevant auction, then the Purchaser Member’s payment will still be accepted, but will be classified as a late payment.
If a Purchaser Member fails to make payment for the purchase of an auctioned RN into the Komodo Cash Collection Account held by Bank Mandiri before 12:00 PM Jakarta time on the second business day after the end date of the relevant auction, then the Purchaser Member shall be in payment default and the auction result shall be cancelled.
If a Purchaser Member makes 5 late payments or commits 2 payment defaults within a year, then its Purchaser Membership will be terminated and it will no longer be permitted access to Komodo Cash.
If a Purchaser Member makes payment for the purchase of an auctioned RN into the Komodo Cash Collection Account held by same bank as the Faciltattor before 12:00 PM on the next business day, such payment will be made on-time.
What if my buyer is late in paying the RN?
If the Buyer fails to make payment of a RN when due, the Purchaser Member will have direct recourse to such Buyer to request legal payment. A Purchaser Member may request certified copies of the invoice(s) composing an overdue RN from the Qualified Seller by written request to the Facilitator. The Qualified Seller shall then provide such certified copies to the Purchaser Member within 3 days.
The Purchaser Member is entitled to any penalty paid by the Buyer for late payment. Any penalties paid by the Buyer shall be paid to the Purchaser Member’s Bank Account (minus capital gains tax and transfer payment fee) within 2 business days of Buyer payment.
What taxes are applicable and how are they paid?
Proceeds received by a Qualified Seller from the Purchaser Member with respect to the winning auction bid are not taxed. However, the 1% Komodo Cash facilitation fee and transfer payment fee are deducted from these proceeds, with the residual amount paid to the Bank Mandiri account of the Qualified Seller within 2 business days of Purchaser Member payment.
If a RN is auctioned, the Qualified Seller will, upon the RN payment by the Buyer, receive an amount equivalent to VAT charged on the face value of such auctioned RN plus the amount of withholding tax to be withheld from the investment gain made by the Purchaser Member. It is the responsibility of the Qualified Seller to pay these taxes to the Indonesian Revenue Department when they are due. Proof of payment should be held by the Qualified Seller for up to 7 years in case requested by the Facilitator.
Gains incurred by Purchaser Members are taxed at a 15% withholding tax rate in Indonesia.
If a RN is not auctioned, the Qualified Seller will, upon RN settlement, receive an amount equivalent to the face value of the RN plus VAT charged on the face value of such RN minus transfer payment fee. It is the responsibility of the Qualified Seller to pay the VAT associated with the RN to the Indonesian Revenue Department when it is due. Proof of payment should be held by the Qualified Seller for up to 7 years in case requested by the Facilitator.
Can I select certain Purchaser Members to bid for the auction?
Yes. On the Komodo Cash web-site Dashboard, a Qualified Seller will be able to pre-select the Private Auction terms in the “Auction” tab, where the Qualified Seller can choose which Purchaser Members are allowed to view the details of a RN auction and participate in such auction.
How do I find out more about the Purchaser Members?
If you would like additional information about Purchaser Members, kindly make use of all other resources available to you. Komodo Cash makes no representation as to the credit or performance of Purchaser Members, Qualified Sellers or Buyers using Komodo Cash.
As a Qualified Seller, can I also register to be a Purchaser Member?
Yes. In the event that a Qualified Seller also wishes to participate in an auction as a Purchaser Member on the Komodo Cash website, such Qualified Seller must apply and be approved separately for Purchaser Membership.
How can I exit Komodo Cash?
In the event that a Qualified Seller wishes not to utilize Komodo Cash further, it must notify Komodo Cash and have its Buyer(s) execute a Standard Form Notification. The Qualified Seller may no longer auction a RN once it has declared its exit to Komodo Cash via written notification to the Facilitator and its RNs will continue to flow through the Komodo Cash Collection Account for as long as its Buyer(s) sends payment to such the Komodo Cash Collection Account.