1.    The Reporting of Foreign Exchange Flows (FEF) covers the reporting of transfers in financial assets and liabilities between residents and nonresidents, including transfers in foreign financial assets and liabilities among residents. The implementation of this reporting requirement is based on Act Number 24 of 1999 concerning The Foreign Exchange Flows and Exchange Rate System. The objective of this reporting requirement is to support the formulation and implementation of policies on monetary, banking and payment systems. The information and data obtained from this reporting requirement is used to compile various economic statistics, including Indonesia Balance of Payments statistics and International Investment Position Indonesia statistics.

2.    Bank Indonesia Regulation Number 13/21/PBI/2011 dated September 30, 2011 concerning Monitoring of Bank Activity in  Foreign Exchange Flows is a refinement to the previous regulation. It is adopted in order to improve the completeness and accuracy of data and information on foreign exchange flows and to support the implementation of the regulation concerning receipt of export proceeds to domestic banks. Several aspects have been improved in the above-mentioned regulation, particularly related to the scope of reported data and reporting banks, report period, and penalties. Unlike the previous regulation which also governed the reporting of non-bank financial institutions’ foreign exchange flows, the new regulation only regulates banks as there are different business characteristics between both types of financial institutions.

3.    The reporting banks set forth in this regulation are all commercial banks domiciled in Indonesia.

4.    Each reporting bank as mentioned above is required to submit FEF reports which generally include data/information on:

a.     Bank and/or its customer’s transactions that affect bank’s external financial assets (EFA) and/or external financial liabilities (EFL), and/or

b.     The position and changes of bank’s EFA and/or EFL.

When bank’s customers engaged in export-related transactions, the bank must submit details of the export transactions and other supporting documents to Bank Indonesia as stipulated in the regulation concerning receipt of export proceeds to domestic banks.

5.    This new regulation is effective starting from data for October 2011 which is submitted in November 2011.

6.    With the enactment of this new regulation, Bank Indonesia Regulation Number 1/9/PBI/1999 dated October 28, 1999 concerning the Monitoring of Foreign Exchange Flows of Banks and Non Bank Financial Institutions is revoked and declared null and void, except for the articles that regulate the monitoring of FEF of non-bank financial institutions up to data for December 2011 which is submitted in January 2012.