Regulatory Alerts2021-03-31
Regulation of Member of Board of Governors Number 23/4/PADG/2021 on Amendment to Regulation Number 20/18/PADG/2018 on Hedge Swap Transactions to Bank Indonesia
The Member of the Board of Governors of Bank Indonesia issued Regulation Number 23/4/PADG/2021 to amend the previous framework governing Hedge Swap Transactions to support rupiah stability and deepen the domestic foreign exchange market. The regulation updates operational procedures by introducing the Jakarta Interbank Spot Dollar Rate (JISDOR) as the primary reference rate for USD transactions and defines cross rates for other currencies, while also clarifying reporting requirements and settlement timelines. Additionally, the amendment establishes specific sanctions for non-compliance, including written warnings and monetary penalties calculated based on prevailing interest rates and spot rates.
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