​
| Effective |
​: |
​10 November 2014 |
I.
This Bank Indonesia Regulation
(PBI) is issued to encourage the
deepening of domestic foreign exchange market through a comprehensive
regulation related to foreign exchange transactions against Rupiah between
Banks and Foreign Parties. This PBI constitutes an improvement from several
regulations related to foreign exchange transactions against Rupiah in order to
provide clearer guidelines on the transactions and flexibility to the market
participants.
II. Substances regulated in the PBI are concerning Foreign
Exchange Transactions against Rupiah between Banks and Foreign Parties, among
others:
1. Banks must have written internal guidelines in performing Foreign Exchange
Transactions against Rupiah.
2. The Foreign Exchange Transactions against Rupiah performed above the
threshold must have Underlying Transactions.
3. Underlying Transactions for Foreign Exchange Transactions against Rupiah
between Banks and Foreign Parties include all activities of:
a. goods and service trading, both domestic and overseas; and/or
b.
investments in the form of foreign
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 Foreign Parties are:
a. using Bank Indonesia Certificates for Derivative Transactions; and
b.
placement in Banks (vostro) among
others in the form of savings, demand deposits, time deposits, and Negotiable
Certificate of Deposit (NCD).
5. Spot Transactions shall be regulated as follows:
a. Purchase of Foreign Currencies against Rupiah through Spot Transactions by
Foreign Parties to Banks up to USD100,000.00 (one hundred thousand US Dollar) or
its equivalent per month per Foreign Party can be performed without Underlying
Transactions.
b. Purchase of foreign currencies against Rupiah is prohibited from exceeding
the nominal value of Underlying Transactions.
6. Derivative Transactions shall be regulated as follows:
a. Purchase and/or sale of foreign currencies against Rupiah through
derivative transactions by Foreign Parties to Banks up to USD1,000,000.00 (one
million US Dollar) or its equivalent both per individual transaction and per
position (outstanding) of each sale Derivative Transaction and purchase Derivative
Transaction per Bank can be performed without Underlying Transactions.
b. Derivative Transactions are prohibited from exceeding the nominal value and
Term of the Underlying Transactions.
c. Term of Derivative Transactions with Underlying Transactions in the form of
investments is 1 (one) week at minimum, calculated based on the effective date
of Derivative Transactions up to the value date of Derivative Transactions, and
not exceeding the investment term at maximum, unless for forward transactions
of foreign currencies purchases against Rupiah between Banks and Foreign
Parties for settlements of investment activities.
d. Derivative Transactions can be performed on income from investment in the
form of dividends, which amount and receiving time cannot be ascertained yet.
e. Derivative Transactions can be performed by Banks with Foreign parties in
the context of cover hedging of Banks.
7. Banks are prohibited from performing transactions with Foreign Parties,
among others on:
a. Lending or financing in Rupiah and/or foreign currencies, except for:
1) Non-cash credit or financing or guarantee related to investment activities
in Indonesia obtaining counter guaranty from a Prime Bank or the availability
of security deposit of 100% from the value of guarantee’s given.
2) Credit or financing in the form of syndicates.
3) Credit Cards.
4) Consumption credit or financing used in the country.
5) Intraday overdrafts in Rupiah and foreign currencies supported by authenticated
documents showing confirmation on the inflow of funds to the concerned account
on the same day.
6) Overdrafts in Rupiah and foreign currencies for administrative costs.
7) Takeover of bills from the government appointed body that has to manage the
concerned Bank assets in the context of restructuring Indonesia’s banking by
Foreign Parties whose payments guaranteed by Prime Banks.
b. Placements in Rupiah.
c. Purchase of Securities in Rupiah issued by Foreign Parties, excluding:
1) Purchase of Securities related to activities of goods export from Indonesia
and goods import to Indonesia as well as domestic trades.
2) Purchase of bank drafts in Rupiah issued by banks overseas for the interest
of Indonesian Workers (TKI).
d. Interoffice billings in Rupiah.
e. Interoffice billings in foreign currencies in the context of Lending or
Financing in foreign countries.
f. Capital investments in Rupiah.
g. Foreign Exchange Transactions against Rupiah if the transactions or potential
transactions are related to structured products.
8. Rupiah Transfers shall be regulated as follows:
a. Banks are prohibited to perform Rupiah Transfers to foreign countries.
b. Rupiah Transfers can be performed to Foreign Parties’ accounts or joint
accounts in domestic Banks with a nominal value up to equivalent of USD1,000,000.00
(one million US Dollar) or inter-accounts Rupiah transfer owned by the same
Foreign Party can be performed.
c. Rupiah Transfer with a nominal value above USD1,000,000.00 (one million US
Dollar) must be based on Underlying Transactions, except for Rupiah Transfer
performed in order to settle transactions through roll over, early termination,
and unwinding.
d. Banks receiving Rupiah transfers must conduct verification over the status
of Rupiah Transfer funds beneficiaries.
9. Transaction settlements shall be regulated as follows:
a. Settlements of Spot Transactions between Banks and Foreign Parties must be
performed by full movement of funds .
b. Settlement of Derivative Transactions between Banks and Foreign Parties may
be done by netting for transactions of roll over, early terminations, and
unwinding.
c. Settlements of Derivative Transactions by netting with a nominal value not
to exceed USD1,000,000.00 (one million US Dollar) may be performed provided
that they are supported by Underlying Transactions. In case at the time of
transactions settlements, the Foreign Parties are not able to submit the Underlying
Transaction documents, then the settlements should be performed by full
movement of funds.
d. Term of Derivative Transactions for the settlements of roll over, early
termination, and unwinding transactions shall be 1 (one) week at minimum.
10. Documents of transactions that must be attached in the transactions of
foreign currencies purchase and/or sale against
Rupiah are set as follows:
11. Submission of documents is regulated as follows:
a. Underlying Transaction documents and/or supporting documents are submitted
for each transaction based on date of transactions.
b. Underlying Transaction documents and/or supporting documents for Spot
Transactions must be received by Banks no later than the value date.
c. Underlying Transaction documents and/or supporting documents for Derivative
Transactions must be received by Banks no later than five business days after the
transaction date.
d. In the event the Derivative Transactions have Underlying Transactions in
the form of goods and service trading activities, both domestic and overseas,
with 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.
12. Banks must administer documents of Underlying Transaction of Foreign
Exchange against Rupiah.
13. Banks that violate regulation 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 transaction for every violation, with a penalty
amount of no less than Rp10.000.000,00 (ten million Rupiah) and no greater than
Rp1.000.000.000,00 (one billion Rupiah).
14. Calculation for financial penalties shall use Jakarta Interbank Spot Dollar
Rate (JISDOR) on the date of
violation.
