I.
This Regulation of Bank Indonesia (PBI) is issued to encourage the
deepening of foreign exchange market through a comprehensive regulation related
to Foreign Exchange Transactions against Rupiah between Banks and Domestic
Parties. This PBI is an improvement of several regulations associated with
foreign exchange transactions against Rupiah to provide clearer guidelines on
transactions and flexibility to market participants.
II. Substances stipulated in PBI concerning Foreign
Exchange Transactions against Rupiah between Banks and Domestic Parties are among others:
1.
Banks must have written
internal guidelines in performing Foreign Exchange Transactions against Rupiah.
2.
The Foreign Exchange
Transactions against Rupiah performed by Banks with Customers above the
threshold must have Underlying Transactions.
3.
Underlying Transactions for Foreign Exchange Transactions against Rupiah between Banks and Domestic
Parties cover all activities:
a.
Goods and services trading,
both domestic and overseas; and/or
b.
Investments in the form of direct
investment, portfolio investment, loans, capital, and other
investments, both domestic and overseas.
4.
Not included as Underlying
Transactions for Foreign Exchange Transactions against Rupiah between Banks and Domestic
Parties are:
a.
Placement of funds in the
Banks among others in the form of savings, demands
deposits, time deposits, and Negotiable Certificate of Deposit (NCD); and
b. Activities of transfering funds by funds transfer companies.
5.
Buying foreign currencies
against Rupiah by Customers to Banks can be performed without Underlying
Transactions through Spot Transactions and/or Derivative Transactions up to the
buying threshold of USD100,000.00 (one hundred thousand US Dollar).
6. Selling foreign currencies against Rupiah by Customers to Banks may be
performed without Underlying Transactions through forward or option
transactions up to the selling threshold of USD1,000,000.00 (one million US
Dollar).
7. Transaction documents that must be enclosed in the transactions of
purchases and/or sales of foreign currencies against Rupiah are governed as
follows:
1. Foreign Exchange Transactions against Rupiah between Banks do not require Underlying
Transactions.
2. Underlying Transaction documents consist of final and estimated documents. The estimated Underlying Transaction documents
require to have supporting documents, in the form of:
a. Statement Letters from Customers signed by the authorized parties of
Customers, containing information on the amount of the needs, purpose of
utilization and required date of the foreign currencies, as well as type of
transaction performed.
b. For customers with legal entities, a letter of authorization from the high
level management and acknowledged by the Board of Commissioners, if the
authorized party is not specified in its articles of association yet.
3.
Submission of Underlying
Transaction documents is regulated as follows:
a. Underlying Transaction documents and/or supporting documents shall be
submitted for every transaction based on the date of transaction.
b. In the event Banks have already known the track record of the Customers
well and the Customers submitted final underlying documents, the Customers may
submit the supporting documents of foreign exchange transactions regularly.
c. Underlying Transaction documents and/or supporting documents for Spot
Transactions must be received by Banks no later than the value date.
d. Underlying Transaction documents and/or supporting documents for Derivative
Transactions must be received by Banks no later than 5 business days after the
transaction date.
e. In the event the Derivative Transactions have a maturity date less than 5
business days after the transaction date, the Underlying Transaction documents and/or
supporting documents must be received by Banks no later than the maturity date.
4.
Banks must administer Underlying
Transaction documents of Foreign Exchange against Rupiah.
5. Settlements of foreign exchange transactions against Rupiah shall be
regulated as follows:
a. Settlements of Spot Transactions between Banks and Customers and inter Banks
must be conducted by full movement of funds.
b. Settlements of Derivative Transactions between Banks and Customers and
inter Banks can be performed by netting for roll over, early termination, and
unwinding of transactions.
c.
Settlements of Foreign
Exchange Transactions against Rupiah performed by Foreign Exchange Traders
(Money Changers) and travel agents for the interests of their customers must be
done by full movement of funds.
6.
Banks are prohibited from
performing transactions among others:
a. Foreign Exchange Transactions against Rupiah if the transactions or the
potential transactions associated with structured products;
b. Lending or financing in foreign currencies and/or in Rupiah for the
interests of Derivative Transactions.
c. Provision of overdrafts to Customers for the purpose of Foreign Exchange
Transactions against Rupiah.
7.
Banks that violate the
provisions stipulated in this PBI shall be imposed sanctions as follows:
a. An administrative sanction in the form of a written warning.
b. A financial penalty of 1% from the nominal value of the violated
transactions for every violation with a minimum amount of Rp10.000.000,00 (ten
million Rupiah) and a maximum of Rp1.000.000.000,00 (one billion Rupiah).
8. Calculation of financial penalties shall use Jakarta Interbank Spot Dollar
Rate (JISDOR) on the date of violation.
