Bank Indonesia Limits Foreign Currency Purchase Maximum US$ 25000

Bank Indonesia Limits Foreign Currency Purchase Maximum US$ 25000

To maintain the stabilization of rupiah exchange rate considering there are many foreign currency requests which do not relate directly to the real economic activity, Bank Indonesia (BI) changes the limitof the maximum value of foreigncurrency purchasethrough spot transaction which is done without a specific purpose (underlying), previously from US$ 100,000 per month for each customer/foreign party to US$ 25,000 or equivalent per month for each customer.

“Thus, every foreign currency purchase above US$ 25,000 is required to own underlying transaction in the form of all trade and investment activities. Besides, BI also regulates if underlying transaction nominal is not the multiples of US$ 5,000, rounding up the multiples of US$ 5,000 will be done,” Executive Director of Communication Department of BI Tirta Segara said in a press statement, on Friday (28/8).

Tirta explained that restrictions for the underlying transaction such as for importing goods, paying tuition fee, cost of treatment abroad, or foreign debt payment will not be enforced.

According to Tirta, the policy for restricting the foreign currency purchase of underlying transaction is done by BI to maintain the stability of rupiah exchange rate considering there are many requests for foreign currency which do not relate directly to the real economic activity (without underlying transaction) which can result in the imbalance of demand and supply in foreign currency market and lead to speculation activity.

In relation to this, BI makes the second change for BI Regulation on Foreign Currency Transaction for Rupiah among Bank and Domestic and Foreign Parties. The change is about regulating the decline in value of spot transaction which is required to own underlying transaction,” Tirta noted.

In line with the previous regulation, the scope of threshold regulation, according to the Executive Director of Communication Department of BI, beside regulating the transaction of the customer to the bank also regulating the transaction among the customers and Business Activity of Foreign Currency Exchange (KUPVA) of Bank and KUPVA of non-Bank.

Through the improvement of this provision, BI hopes that the condition of the foreign-domestic currency market will be more stable to fulfill the real needs of the society for foreign currency to support the economic activity.(ES/Humas) (JS/EP/YM/Naster)