Frequently Asked Question - Bank Sentral Republik Indonesia
November 14, 2018
Category:

Investor Relations Unit

1.  Q:  ​Could you please explain about the procedures for opening bank representative office in Indonesia.
A:  The procedure for opening a representative office in Indonesia refers to Decree of Director of Bank Indonesia No. 32/37 /KEP/DIR dated 12 May 1999. Here are the highlight guidelines of the procedure: The opening of a representative office must have permission from Board of Governor of Bank Indonesia. Bank that intends to open a representative office in Indonesia should have total asset which ranks top 300 in the world, which could be refer to the bank rank's that issued by credible international agency. The application letter should be signed by the Director of the bank and addressed to the Board of Governor of Bank Indonesia. The application letter should also mention the reason to open a representative office in Indonesia. The application should be accompanied by : a copy document that mentions total asset of banks is ranks top 300 in the world. letter of assignment from Head office to the candidate of head of representative office in Indonesia. curriculum vitae of the candidate of head of representative office in Indonesia. letter that stated the candidate of head of representative office will work exclusively for the bank (no double position in any other companies). letter that stated no objection from banking authority where the head office located, to open a representative office in Indonesia. Letter of objection / no objection to open a representative office in Indonesia will be given by Bank Indonesia within 30 days after all complete application is received by Bank Indonesia. With regard to the application process, Bank Indonesia will 1) check the completeness and accuracy of the documents 2) conduct interview with the candidate of head of representative office. ​
2.  Q:  ​Could you please send me the details of " IDR transfer restriction?
A:  Please find Bank Indonesia regulation 3/3/PBI/2001 2001 regarding restriction of Rupiah transactions and foreign currency credit offered by Bank and circular letter No. 3/5/DPD regarding the same topic. These regulations are available on Bank Indonesia website (www.bi.go.id). On the BI website, select English then find “Regulations” and you may choose regulation on the year 2001. On this page, you will find the regulations.​
3.  Q:  ​Could you provide me with Bank Indonesia regulation concerning requirement for holding a full bank license.
A:  Please find Bank Indonesia regulation No. 2/27/PBI/2000 dated December 15, 2000 concerning commercial bank. This regulation outlines all information (e.g. bank licensing, activities, etc.) that you need. You can find the regulation on Bank Indonesia website (www.bi.go.id). On the BI website, select English then find “Regulations” and you may choose regulation on the year 2000. On this page, you will find the regulation.​
4.  Q:  ​How to find the total number of banks in Indonesia?
A:  Please refer to “Policy Document” section (available form IRU website homepage) and then select overview of Banking System and you will find the data.​
5.  Q:  ​Whether non-residents of Indonesia could open account in Indonesia and place IDR time deposits. In addition, will there be any restrictions for cases of withdrawal?
A:  ​Basically non-residents are allowed to open account in Indonesia, as long as they can meet the regulations and general terms and conditions required by the banks. There are two regulations related to banking activities with non resident namely: a. Regulation No. 3/10/PBI/2001 regarding The Implementation of Know Your Customer Principles. With these regulations Banks are obliged to be prudent in accepting customers. Banks have to know the complete information of their customer including their identity, the source of fund. Banks are also obliged to monitor customer's banking transaction activities and report suspicious transactions to the Central Bank. b. Regulation No. 7/14/PBI/2005 regarding Restriction of Rupiah Transaction and Foreign Currency Lending by Banks. With this regulations Banks are restricted in conducting certain transactions with Foreign Parties (including in this is foreign citizen) as follows : a) foreign exchange selling derivative transactions against Rupiah and b) foreign exchange buying derivative transactions against Rupiah. For more complete explanation, you can pick the regulations from our website (link BI Regulation)
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