​
| Effective |
​: |
​10 November 2014 |
I.
Background and Purpose
In order to
implement the mandated Law, Bank Indonesia has formulated several policies intended to achieve
and to maintain the stability of Rupiah, particularly in relation to the
stability of Rupiah exchange rate. As part of such measures, Bank
Indonesia needs to perform improvement to
the regulation on hedging transactions of customers to banks. The improvement referred to shall be
performed in order to align it with the regulation on foreign exchange
transactions against Rupiah between banks and the domestic parties in the
domestic foreign exchange market. This is expected to realize and maintain the
stability of Rupiah exchange rate and to encourage the deepening of domestic
foreign exchange market.
II. Regulation
Materials
1.
Hedging transactions
must be performed by referring to Bank Indonesia regulation concerning foreign
exchange transactions against Rupiah between banks and the domestic party, Bank
Indonesia regulation on derivative transactions, and regulation on the application
of bank’s risk management.
2. Hedging transactions must be performed with underlying
transactions, whereas the term and nominal of hedging transactions shall not
exceed the term and the nominal value of the underlying transactions.
3. Settlements of hedging transactions shall be performed
pursuant to Bank Indonesia regulation concerning foreign exchange transactions
against Rupiah between banks and the domestic parties.
4. Sanctions shall refer to Bank Indonesia regulation
concerning foreign exchange transactions against Rupiah between Banks and the
domestic parties, Bank Indonesia regulation on derivative transactions, Bank
Indonesia regulation on commercial banks’ daily reports and regulation on the
application of bank’s risk management.
5. Revocation of Bank Indonesia Circular No.15/42/DPM
dated 8 October 2013 concerning Hedging Transaction to Banks.
