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2020-03-19

Bank Indonesia Regulation No. 22/2/PBI/2020 on the Second Amendment to Bank Indonesia Regulation Number 20/10/PBI/2018 on Domestic Non-Deliverable Forward Transactions

Bank Indonesia issued Regulation No. 22/2/PBI/2020 to expand the underlying transactions permitted for Domestic Non-Deliverable Forward (DNDF) contracts. The amendment allows foreign investors to utilize their rupiah accounts, including savings and investment deposits, as valid underlying transactions for hedging rupiah exposure. This measure aims to provide flexibility for foreign investors during market instability by offering alternative hedging mechanisms beyond traditional SBN and stock positions.

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Sumber Data Comunication Departement

3/19/2020 7:00 AM

Judul Bank Indonesia Regulation No. 22/2/PBI/2020 On The Second Amendment To Bank Indonesia Regulation Number 20/10/PBI/2018 On Domestic Non-Deliverable Forward Transactions

Bank Indonesia Regulation

Monetary

Effective

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SUMMARY OF BANK INDONESIA REGULATION

Regulation

Bank Indonesia Regulation No. 22/2/PBI/2020 on the Second Amendment to Bank Indonesia Regulation Number 20/10/PBI/2018 on Domestic Non-Deliverable Forward Transactions

Effective Date

19 March 2020

Background

The background of this regulation issuance is to hold the growing demand for USD by expanding types of underlying transactions for foreign investors in order to give alternatives for hedging of rupiah exposure. It aims to provide flexibility for foreign investors desirous of currency exposure , whereas due to market instability, the foreign investors are reluctant to have any position in

SBN and

stocks. Foreign investors may remain conducting hedging through DNDF while awaiting market to be stable for re-investment. It is accommodated through the use of foreign investor’s rupiah accounts as an underlying transaction for purchasing DNDF in USD/IDR.

II.

Regulation Materials

This regulation adds types of underlying transactions for DNDF as follows:

Underlying transactions for DNDF

cover all of the following activities:

trade of goods and services within and outside the country;

investments in the form of direct investments, portfolio investments, loans, capitals, and other investments within and outside the country;

loan or financing extension by

Bank in foreign currencies for trade and investment activities,

particularly

for transactions between a Bank and Customer; and/or

Foreign Party’s rupiah account.

The term

“foreign party’s rupiah account” means all rupiah cash accounts of a Foreign Party with a Bank, among others in the form of savings accounts, checking accounts ( giro ), and/or deposit accounts for investments, for investment return saving, and/or for any other purposes.

Lampiran Attachments

Lampiran 1 PBI_220220_En.pdfBank Indonesia Regulation Number 22/2/PBI/2020

Lampiran 2 Bank Indonesia Regulation Number 22/2/PBI/2020 - FAQ

Lampiran 3

Lampiran 4

Lampiran 5

Lampiran 6

Lampiran 7

Lampiran 8

Lampiran 9

Lampiran 10

Kontak Contact

Kontak Contact Center BICARA : 1500-131 e-mail : bicara@bi.go.id

Working hours: Monday to Friday, 08.00-16.00 West Indonesia Time

Halaman ini terakhir diperbarui 1/27/2021 9:15 PM

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