Regulation of Member of Board of Governors Number 11 of 2024 on Foreign Exchange Market Transactions

REGULATION OF MEMBER OF BOARD OF GOVERNORS NUMBER 11 OF 2024 ON FOREIGN EXCHANGE MARKET TRANSACTIONS BY THE BLESSINGS OF ALMIGHTY GOD THE MEMBERS OF THE BOARD OF GOVERNORS OF BANK INDONESIA, Considering : a. that in realizing the objective of achieving stability in the rupiah value, Bank Indonesia determines and implements monetary policy in a sustainable, consistent, and transparent manner, one of which is carried out through the regulation, development, and supervision of the foreign exchange market; b. that the regulation, development, and supervision of the foreign exchange market aim to build a modern and advanced foreign exchange market; c. that in order to promote a modern and advanced foreign exchange market, it is necessary to regulate the foreign exchange market by taking global economic dynamic into account and the needs of market participants with due observance of the principle of prudence; d. that based on the considerations as referred to in point a, point b, and point c, it has been deemed necessary to enact Regulation of the Member of the Board of Governors on Foreign Exchange Market Transactions; Observing : Regulation of Bank Indonesia Number 6 of 2024 on the Money Market and Foreign Exchange Market (State Gazette of the Republic of Indonesia of 2024 Number 17/BI, Supplement to the State Gazette of the Republic of Indonesia Number 85/BI); HAS DECIDED: To Enact: REGULATION OF MEMBER OF THE BOARD OF GOVERNORS ON FOREIGN EXCHANGE MARKET TRANSACTIONS.

2 CHAPTER I GENERAL PROVISIONS Article 1 In this Regulation of Member of the Board of Governors, the terms definitions are:

1. Bank is a commercial bank as referred to in the Law on Banking, including branch offices of a bank domiciled abroad but excluding a commercial bank office with Indonesian legal status operating abroad.
2. Foreign Exchange Market is a part of the financial system related to transaction activities involving the exchange of currencies from 2 (two) different countries and their derivatives but excluding exchange of bank notes provided by foreign exchange business activities (money changer).
3. Residents are individuals, legal entities, or other bodies, which are domiciled or plan to be domiciled in Indonesia for at minimum of 1 (one) year, including representatives and diplomatic staffs of the Republic of Indonesia abroad.
4. Non-Residents are individuals, legal entities, or other bodies, which are not domiciled in Indonesia or have been domiciled in Indonesia for less than 1 (one) year, including representatives and diplomatic staffs of other countries in Indonesia.
5. Derivative is a financial product of which value is derived from an underlying asset.
6. Underlying Transaction is the activity that underlies Foreign Exchange Market transactions.
7. Rupiah Transfer is the transfer of a specified amount of rupiah funds directed to the recipient of funds for the benefit of the Bank or Bank customers, either through cash deposits or transfers between accounts at the same or different Banks, resulting in an increase in the recipient's rupiah account balance.
8. Termination of Financial Transactions through Close-Out Netting, hereinafter referred to as Close-Out Netting, is the process of early termination, valuation, and debt set-off of all financial transactions between the parties in 1 (one) master agreement to produce 1 (one) value (single amount) that may be billed to one of the parties.
9. Central Counterparty, hereinafter referred to as CCP, is an institution that positions itself between the parties conducting financial transactions, thus acting as a buyer for the seller and as a seller for the buyer. CHAPTER II FRAMEWORK OF THE REGULATION, DEVELOPMENT, AND SUPERVISION OF THE FOREIGN EXCHANGE MARKET Article 2 (1) Bank Indonesia shall regulate, develop, and supervise Foreign Exchange Market transactions.

3 (2) The scope of regulation, development, and supervision of Foreign Exchange Market transactions as referred to in section (1) shall include: a. types of Foreign Exchange Market transactions; b. Underlying Foreign Exchange Market transactions; and c. prohibitions and restrictions on Foreign Exchange Market transactions. CHAPTER III FOREIGN EXCHANGE MARKET PRODUCTS Part One Contract and Confirmation Article 3 (1) Foreign Exchange Market transaction participants that carry out Derivative transactions in the Foreign Exchange Market are required to use financial contracts. (2) Financial contracts used in exchange rate Derivative transactions on the Foreign Exchange Market as referred to in section (1) may be in the form of: a. Indonesian Derivatives Master Agreement; b. financial contract in the form of master agreement and/or standard contract issued by associations, self￾regulatory organizations in the money market and Foreign Exchange Market, and/or related authorities; or c. other contracts. (3) The financial contract as referred to in section (2) must be supported by a written confirmation indicating the occurance of the transaction. (4) The financial contract as referred to in section (2) shall contain at minimum: a. contract date; b. name of the Foreign Exchange Market transaction actor; and c. rights and obligations of Foreign Exchange Market transaction participants. (5) The written confirmation as referred to in section (3) shall contain at minimum: a. transaction date and settlement date; b. transaction type; c. currency type; and d. transaction nominal value. (6) Foreign Exchange Market transaction participants that violate the provisions as referred to in section (1) shall be subject to sanctions in the form of a written warning. (7) The Indonesian Derivative Master Agreement as referred to in section (2) point a is listed in Appendix I which constitutes an integral part of this Regulation of the Members of the Board of Governors. Part Two Smart Contract

4 Article 4 (1) Derivative transactions in the Foreign Exchange Market as referred to in Article 3 section (1) may use smart contracts. (2) The use of the smart contract as referred to in section (1) shall be followed by the storage of a smart contract agreement. (3) The storage of the smart contract agreement as referred to in section (2) shall at a minimum contain terms and conditions for automating the implementation of the rights and obligations agreed upon in the smart contract (4) The smart contract as referred to in section (1) and/or its printed version may serve valid legal evidence as regulated in the Law on the development and strengthening of the financial sector. Article 5 (1) Banks that use smart contracts as referred to in Article 4 section (1) are required to: a. maintain governance, application of the principle of prudence, and risk management; b. ensure the security and reliability of information systems, including cyber resilience; c. ensure confidentiality of data and information; d. ensure the availability of data and information access for Bank Indonesia; and/or e. fulfill other obligations stipulated by Bank Indonesia. (2) Banks are required to consult with Bank Indonesia before using smart contracts as referred to in section (1). (3) The obligation to carry out consultations as referred to in section (2) shall be excluded for certain Foreign Exchange Market products. (4) In addition to the provisions as referred to in section (1) and section (2), the use of smart contracts must take the provisions of law and regulations into account. (5) Banks that violate the provisions as referred to in section (1) and section (2) shall be subject to sanctions in the form of a written warning. Article 6 (1) Banks shall submit an application letter for consultation on the use of smart contracts as referred to in Article 5 section (2) in the form of a softcopy through electronic mail. (2) Banks as referred to in section (1) shall also submit a proposal and supporting documents related to foreign exchange transactions when submitting the application for consultation as referred to in section (1) as consultation material with Bank Indonesia. (3) A sample of the format for an application letter for consultation as referred to in section (1) is as set out in Appendix II which constitutes an integral part of this Regulation of Member of the Board of Governors.

5 CHAPTER IV REFERENCE RATE Part One Jakarta Interbank Spot Dollar Rate and Non-USD/IDR Reference Rate Article 7 (1) Bank Indonesia shall determine the Jakarta Interbank Spot Dollar Rate every business day. (2) The Jakarta Interbank Spot Dollar Rate as referred to in section (1) shall be determined based on spot transaction data for United States dollars against the rupiah carried out between banks. (3) The transaction data as referred to in section (2) is transaction data throughout the business day obtained from the monitoring system of the foreign exchange transaction against the rupiah as referred to in the provisions of Bank Indonesia on monetary operations infrastructure. (4) The determination of the Jakarta Interbank Spot Dollar Rate as referred to in section (1) shall be carried out by calculating a volume-weighted average of all data as referred to in section (2). (5) The results of the calculation of the Jakarta Interbank Spot Dollar Rate as referred to in section (4) shall be rounded to the nearest rupiah. Article 8 The Jakarta Interbank Spot Dollar Rate shall be published on the official website of Bank Indonesia every business day at 16.15 WIB or at other times determined by Bank Indonesia. Article 9 (1) Bank Indonesia shall determine the non-USD/IDR reference rate every business day. (2) The non-USD/IDR reference rate as referred to in section (1) shall be determined based on the Jakarta Interbank Spot Dollar Rate and the closing rate of foreign exchange against other foreign currencies issued by certain institutions. (3) The results of the calculation of the non-USD/IDR reference rate as referred to in section (2) shall be rounded to the nearest rupiah. Article 10 The non-USD/IDR reference rate shall be published on the official website of Bank Indonesia every business day at 16.30 WIB or at other times determined by Bank Indonesia.

6 Part Two Use of Reference Rate Article 11 (1) In the event that foreign exchange rate Derivative transactions against the rupiah in the Foreign Exchange Market use a reference rate in transaction settlement, Banks may use the Jakarta Interbank Spot Dollar Rate or a non-USD/IDR reference rate. (2) The reference rate as referred to in section (1) shall be stated in the contract as referred to in Article 3 section (2) and/or written confirmation as referred to in Article 3 section (3). CHAPTER V FOREIGN EXCHANGE MARKET TRANSACTIONS Part One General Article 12 (1) Foreign Exchange Market transactions shall include: a. foreign exchange transactions against the rupiah; b. foreign exchange transactions against foreign currencies. (2) Foreign Exchange Market transactions as referred to in section (1) shall include currency exchange in the form of: a. physique; b. account; and/or c. digital issued by the competent authority. (3) Foreign exchange transactions against foreign currencies as referred to in section (1) point b are transactions carried out in the territory of the Unitary State of the Republic of Indonesia. Article 13 (1) Foreign Exchange Market transaction participants shall include: a. financial services institution; b. corporation; c. individual; and/or d. other transaction participants determined by Bank Indonesia (2) Foreign Exchange Market transaction participants as referred to in section (1) shall be categorized as: a. Resident; and b. Non-Resident.

7 Article 14 (1) Foreign Exchange Market transaction participants as referred to in Article 13 section (1) must carry out Foreign Exchange Market transactions with transaction counterparties in the form of: a. Bank; and/or b. other parties designated by Bank Indonesia. (2) Foreign Exchange Market transactions as referred to in section (1) may be carried out through institutions supporting Foreign Exchange Market transactions and/or Financial Market Infrastructure organizers in the form of transaction facilities. Part Two Transaction Type Article 15 (1) Types of Foreign Exchange Market transactions shall include: a. cash transactions b. Derivative transactions; and c. other foreign exchange transactions as determined by Bank Indonesia. (2) Cash transactions as referred to in section (1) point a shall include: a. transactions with the fund transfer date carried out on the same day (today transaction); b. transactions with the fund transfer date carried out 1 (one) business day after the transaction date (tomorrow transaction); and c. transactions with the fund transfer date carried out 2 (two) business days after the transaction date (sport transaction). (3) Derivative transactions as referred to in section (1) point b shall include: a. Derivative transactions that are plain vanilla; b. structured product transactions; and c. other derivative transactions as determined by Bank Indonesia. Article 16 (1) Derivative transactions that are plain vanilla as referred to in Article 15 section (3) point a shall include: a. forward; b. domestic non-deliverable forward; c. futures; d. swap; e. cross-currency swap; f. option; and g. other Derivative transactions that are plain vanilla (2) Structured product transactions as referred to in Article 15 section (3) point b are a combination of exchange rate Derivative transactions with:

8 a. other exchange rate Derivative transactions; b. other Derivative transactions; and/or c. non-Derivatives. (3) Domestic non-deliverable forward transactions as referred to insection (1) point b must: a. be settled by calculating the margin between the reference rate and the agreed rate into account; b. be settled in rupiah currency; and c. use the Jakarta Interbank Spot Dollar Rate and/or non-USD/IDR reference rate as the reference rate. Part Three Transactions through Third Parties Article 17 (1) Foreign exchange transactions against the rupiah for certain economic activities may be carried out through third parties. (2) Certain economic activities as referred to in section (1) shall include: a. provision of fund transfer; b. trading using electronic system (e-commerce); c. portfolio investment transaction; d. foreign direct investment; e. loan; f. capital; and g. other activities determined by Bank Indonesia (3) Third parties as referred to in section (1) may use the Underlying Transaction submitted by the third party’s customers to carry out foreign exchange transactions against the rupiah. (4) Banks are required to ensure that third parties as referred to in section (1) submit supporting documents in the form of a written statement stating that foreign exchange transactions against the rupiah: a. shall be a maximum of the nominal value of the Underlying Transactions; and b. shall be in accordance with the economic activities as referred to in section (2). (5) Banks that violate the obligations as referred to in section (4) shall be subject to sanctions in the form of: a. written warning; and b. obligation to pay 1% (one percent) of the nominal transaction violated for each violation, with a minimum amount of the sanction of the obligation to pay of Rp10,000,000.00 (ten million rupiah) and a maximum of Rp1,000,000,000.00 (one billion rupiah). (6) Examples of supporting documents in the form of written statements as referred to in section (4) are listed in Appendix III which constitutes an integral part of this Regulation of the Members of the Board of Governo.

9 Part Four Cover Hedging Transaction Article 18 (1) Banks may conduct foreign exchange transactions against the rupiah with Non-Residents in the form of banks abroad with Underlying Transactions owned by the Bank’s customers for cover hedging purposes. (2) Cover hedging as referred to in section (1) may also be carried out on re-hedge transactions carried out by other Banks as long as the Bank includes the underlying transaction owned by the Bank's customers. Part Five Standardization of Foreign Exchange Market Transactions Article 19 (1) Bank Indonesia may determine the standardization of Foreign Exchange Market transactions which are: a. transacted through transaction facilities; b. cleared through CCP; and c. reported through the trade repository. (2) Bank Indonesia shall publish Foreign Exchange Market transactions as referred to in section (1) on the official website of Bank Indonesia and/or other media determined by Bank Indonesia. Article 20 (1) Bank Indonesia shall determine the standardization of Foreign Exchange Market transactions cleared through CCP as referred to in Article 19 section (1) point b. (2) The standardization of Foreign Exchange Market transactions as referred to in section (1) shall be determined by taking the following into account: a. outstanding transaction; b. liquidity; c. needs of the actor; d. price availability; e. infrastructure readiness; and/or f. direction of Bank Indonesia's policy on the Foreign Exchange Market. (3) Standardization of Foreign Exchange Market transactions as referred to in section (1) shall include at minimum: a. transaction date; b. transaction currency pair; c. transaction settlement type; d. transaction settlement currency; e. transaction settlement date; f. minimum transaction nominal; g. rounding of transaction amount; and h. transaction tenor.

10 (4) Bank Indonesia shall publish the standardization of Foreign Exchange Market transactions cleared through CCP as referred to in section (1) on the official website of Bank Indonesia and/or other media determined by Bank Indonesia. Part Six Transaction Time Article 21 (1) The time for carrying out foreign exchange transactions against the rupiah conducted between Banks shall be determined throughout the period of Bank Indonesia’s open market operations as regulated in Regulation of the Members of the Board of Governors on monetary operations. (2) The time for carrying out foreign exchange transactions against foreign currencies shall be determined in accordance with the transaction time in the global convention. (3) In conducting Foreign Exchange Market transactions, Banks are required to comply with the transaction time provisions as referred to in section (1) and section (2). (4) Banks that violate the provisions as referred to in section (3) shall be subject to administrative sanctions in the form of a written warning. CHAPTER VI UNDERLYING TRANSACTION Part One General Article 22 (1) Banks are required to ensure that: a. foreign exchange transactions against the rupiah carried out in the form of:

1. cash purchase transactions; and
2. derivative transactions, with a nominal value above a certain threshold, have an Underlying Transaction; and b. the Underlying Transaction as referred to in point a meets the provisions of Bank Indonesia on the obligation to use rupiah in the territory of the Unitary State of the Republic of Indonesia. (2) Foreign exchange transactions against the rupiah which are: a. conducted between Banks; b. carried out between Banks and sharia commercial banks and/or sharia business units; and

11 c. transacted with CCP, shall be exempted from the obligation of ownership of the Underlying Transaction as referred to in section (1). (3) Banks that violate the obligations as referred to in section (1) shall be subject to sanctions in the form of: a. written warning; and b. obligation to pay 1% (one percent) of the nominal transaction violated for each violation, with a minimum amount of the sanction of the obligation to pay of Rp10,000,000.00 (ten million rupiah) and a maximum of Rp1,000,000,000.00 (one billion rupiah). Article 23 (1) Banks that carry out foreign exchange transactions against the rupiah are required to ensure that: a. the nominal value of foreign exchange transactions against the rupiah is a maximum of the nominal value of the Underlying Transaction; and b. the maximum period for foreign exchange transactions against the rupiah is the same as the period for the Underlying Transaction. (2) Foreign Exchange Market transaction participants that conduct domestic non-deliverable forward foreign exchange transactions against the rupiah may conduct other foreign exchange transactions against rupiah with the same Underlying Transaction, provided that other foreign exchange transactions against the rupiah are carried out: a. at the earliest from the fixing date of domestic non￾deliverable forward foreign exchange transactions against the rupiah; and b. at the same Bank. (3) Banks that violate the obligations as referred to in section (1) shall be subject to sanctions in the form of: a. written warning; and b. obligation to pay 1% (one percent) of the nominal transaction violated for each violation, with a minimum amount of the sanction of the obligation to pay of Rp10,000,000.00 (ten million rupiah) and a maximum of Rp1,000,000,000.00 (one billion rupiah). Article 24 The type of currency of a Foreign Exchange Market transaction with the obligation to have an Underlying Transaction as referred to in Article 22 may be in the form of: a. the same currency as stated in the Underlying Transaction document; or b. a currency that is different from that stated in the Underlying Transaction document if accompanied by a document explaining the reasons for the difference. Part Two Certain Threshold

12 Article 25 (1) A specific threshold for cash transactions to purchase foreign currency against the rupiah as referred to in Article 22 section (1) point a number 1 shall be USD100,000.00 (one hundred thousand United States dollars) or the equivalent per month per Foreign Exchange Market transaction actor. (2) A specific threshold for foreign currency Derivative transactions against the rupiah as referred to in Article 22 section (1) point a number 2 in the form of forward transactions and domestic non-deliverable forward transactions shall be the sum of: a. USD100,000.00 (one hundred thousand United States dollars) or its equivalent per month per Foreign Exchange Market transaction actor for purchase transactions; and b. USD5,000,000.00 (five million United States dollars) or its equivalent per transaction for sales transactions. (3) A specific threshold for foreign currency Derivative transactions against the rupiah as referred to in Article 22 section (1) point a number 2 in the form of a swap transaction shall be USD5,000,000.00 (five million United States dollars) or the equivalent per transaction. (4) A specific threshold for foreign exchange Derivative transactions against the rupiah as referred to in Article 22 section (1) point a number 2 other than forward transactions, domestic non-deliverable forward transactions, and swap transactions shall be the sum of: a. USD100,000.00 (one hundred thousand United States dollars) or its equivalent per month per Foreign Exchange Market transaction actor for purchase transactions; and b. USD1,000,000.00 (one million United States dollars) or its equivalent per transaction for sales transactions. Article 26 The specific thresholds as referred to in Article 25 shall be regulated under the following conditions: a. monthly limits shall be calculated from the first date of the month until the end of the month; and b. calculation of nominal value of foreign exchange transactions shall be conducted as follows:

1. calculated on the transaction date;
2. for cash purchase transactions, calculated cumulatively for all transactions; and
3. for Derivative transactions, calculated per transaction type. Part Three

13 Type of Underlying Transaction Article 27 (1) Underlying Transactions as referred to in Article 22 section (1) shall include: a. current account transaction activities; b. financial account transaction activities; c. capital account transaction activities; d. credit or financing from Banks to Residents for trade and investment purposes; e. domestic trade of goods and services; and f. other Underlying Transactions as determined by Bank Indonesia. (2) Underlying Transactions as referred to in section (1) shall not include: a. securities denominated in foreign currency issued by Bank Indonesia for all foreign currency purchase transactions against the rupiah; b. fund placement; c. credit or financing facilities that have not been withdrawn; and d. crypto assets. (3) The placement of funds as referred to in section (2) point b may be used as Underlying Transactions for: a. domestic non-deliverable forward transactions, which may use funds placed in rupiah owned by Non￾Residents; b. domestic non-deliverable forward sales transactions, which may use deposits in foreign currencies that have been placed for at minimum of 1 (one) month; c. forward transactions of sales of foreign currency against the rupiah and Rupiah Transfers to accounts owned by Non-Residents, which may use foreign currency fund placements domestically and abroad; and d. purchase of Derivative transactions in the form of structured products combined from exchange rate Derivative transactions with non-Derivatives. (4) Credit or financing facilities that have not been withdrawn as referred to in section (2) point c may be used as Underlying Transactions for cross-currency swap transactions of foreign exchange against the rupiah. Article 28 (1) Current account transaction activities as referred to in Article 27 section (1) point a shall include: a. export and import transactions of goods and/or services, from and to Indonesia b. primary income transactions; and c. secondary income transactions. (2) Financial account transaction activities as referred to in Article 27 section (1) point b shall include: a. direct investment;

14 b. portfolio investment; and c. other investments. (3) Capital account transaction activities as referred to in Article 27 section (1) point c shall include capital transfers. (4) The use of Underlying Transactions in the form of domestic trade of goods and services as referred to in Article 27 section (1) point e may be carried out as long as they have been exempted from the obligation to use the rupiah as referred to in the provisions of Bank Indonesia on the obligation to use the rupiah in the territory of the Unitary State of the Republic of Indonesia. Article 29 Foreign exchange transactions against the rupiah carried out by non-Bank foreign exchange business organizers may use Underlying Transactions in the form of the required amount of bank notes, provided that: a. the amount of bank notes required is calculated using the net amount of foreign currency sale transaction against rupiah carried out by non-Bank foreign exchange business organizers with customers other than Banks and other non-Bank foreign exchange business organizers during a certain period with an example of the calculation as stated in Appendix IV which constitutes an integral part of this Regulation of the Members of the Board of Governors; and b. submit supporting documents in the form of a statement signed by an authorized official from the organizer of non￾Bank foreign exchange business activities containing a commitment to:

1. administer sales and purchase documents and/or Underlying Transaction documents from customers; and
2. provide the customer Underlying Transaction documents if required by Banks, in the event of a customer purchasing foreign currency with a value exceeding the certain threshold of cash transactions of purchase of foreign currency against the rupiah. Article 30 The nominal value of the Underlying Transaction for foreign currency transactions may be rounded up to the nearest multiple of 10,000.00 (ten thousand) in accordance with the currency listed in the Underlying Transaction document. Part Four Transaction Documents Paragraph 1 General Article 31

15 (1) Underlying Transactions as referred to in Article 22 section (1) shall be proven by: a. final Underlying Transaction documents; or b. forcasted Underlying Transaction documents. (2) The list of Underlying Transaction documents as referred to in section (1) is set out in Appendix V which constitutes an integral part of this Regulation of Member of Board of Governors. Article 32 (1) Banks must ensure the validity and reasonableness of the Underlying Transaction documents submitted by Foreign Exchange Market transaction participants. (2) In ensuring validity and reasonableness as referred to in section (1), Banks may: a. ask Foreign Exchange Market transaction participants to show original documents; b. request historical data for at minimum previous 1 (one) year; c. review the track record of the Foreign Exchange Market transaction participants ; and/or d. request additional documents if necessary. Article 33 In the event of the Underlying Transaction is in the form of domestic trade of goods and services as referred to in Article 27 section (1) point e, Banks shall request Foreign Exchange Market transaction participants to submit documents in the form of a copy of the letter of approval for an exception to the obligation to use rupiah from Bank Indonesia. Article 34 Banks must ensure that: a. documents that have been used as Underlying Transactions may be used for other foreign currency transactions against the rupiah insofar they have not matured and do not exceed the nominal value of the Underlying Transaction. b. Underlying Transaction documents for the same domestic non-deliverable forward may not be used at more than 1 (one) Bank; and c. in the event that there are several types of Underlying Transaction documents in 1 (one) series of economic activities, then:

1. only one of the Underlying Transaction documents shall be used for foreign exchange transactions against the rupiah; and
2. other Underlying Transaction documents originating from the same series of economic activities may not be used for other foreign exchange transactions against the rupiah.

16 Paragraph 2 Documents for Foreign Currency Purchase Transactions against the Rupiah with a Maximum Nominal Amount of a Spesific Threshold Article 35 (1) Banks are required to ensure that Foreign Exchange Market transaction participants that make foreign currency purchase transactions against the rupiah with a maximum nominal amount of a specific threshold submit supporting documents in the form of a written statement stating that foreign currency purchase transactions against the rupiah do not exceed a specific threshold per month per foreign exchange market transaction actor in the banking system in Indonesia. (2) The provisions as referred to in section (1) shall be excluded for foreign currency purchase swap transactions against the rupiah. (3) Supporting documents for foreign currency purchase transactions against the rupiah with a maximum transaction nominal of a specific threshold as referred to in section (1) shall be submitted on the transaction date and may be used within 1 (one) calendar month. (4) Banks that violate the provisions as referred to in section (1) shall be subject to sanctions in the form of a written warning. (5) Examples of supporting documents in the form of written statements as referred to in section (1) are listed in Appendix VI which constitutes an integral part of this Regulation of Member of Board of Governors. Paragraph 3 Documents for Foreign Exchange Transactions against the Rupiah with a Nominal Amount above a Certain Threshold Article 36 (1) Banks are required to ensure that Foreign Exchange Market transaction participants that conduct foreign exchange transactions against the rupiah with a nominal value above a specific threshold per month per foreign exchange market transaction actor submit documents in the form of: a. final or forecasted Underlying Transaction documents; and b. supporting documents in the form of a written statement stating:

1. authenticity of the Underlying Transaction document as referred to in point a;
2. the Underlying Transaction document is used for foreign exchange transactions against the rupiah with a maximum amount equal to the nominal value of the Underlying Transaction and a

17 maximum period equal to the Underlying Transaction; 3. information on the purpose of use, date of use, and amount of foreign exchange required for foreign currency purchase transactions against the rupiah with an forecasted Underlying Transaction; and 4. information on the source, date, and amount of foreign exchange receipts, for foreign currency sale transactions against the rupiah with an forcasted Underlying Transaction. (2) Banks that violate the provisions as referred to in section (1) point a shall be subject to sanctions in the form of: a. written warning; and b. obligation to pay 1% (one percent) of the nominal transaction violated for each violation, with a minimum amount of the sanction of the obligation to pay of Rp10,000,000.00 (ten million rupiah) and a maximum of Rp1,000,000,000.00 (one billion rupiah). (3) Banks that violate the provisions as referred to in section (1) point b shall be subject to sanctions in the form of a written warning. (4) Examples of supporting documents in the form of written statements as referred to in section (1) point b are listed in Appendix VII which constitutes an integral part of this Regulation of the Members of the Board of Governors. Paragraph 4 Time of Submission of Underlying Transaction Documents and Supporting Documents Article 37 Underlying Transaction Documents and/or supporting documents as referred to in Article 36 section (1) shall be submitted no later than: a. transaction settlement date; b. transaction early termination date; or c. transaction unwind date. Article 38 (1) Banks may request supporting documents as referred to in Article 36, section (1) point b periodically if Banks well understood the track record of Foreign Exchange Market transaction participants . (2) Periodic submission of supporting documents as referred to in section (1) shall be carried out at minimum of 1 (one) time in 1 (one) calendar year. (3) Submission of supporting documents as referred to in section (1) shall be carried out in the first transaction. CHAPTER VII

18 TRANSACTION SETTLEMENT Part One General Article 39 Settlement of foreign exchange transactions against the rupiah may be executed through: a. transfer of gross principal funds; and b. transfer of funds by calculating the difference in obligations on transactions. Article 40 (1) Banks are required to settle foreign exchange transactions against the rupiah in cash as referred to in Article 15 section (1) point a by transferring the gross principal funds. (2) Banks are required to complete foreign exchange transactions against the rupiah with counterparties in the form of non-Bank foreign exchange business organizers with the delivery of foreign currency carried out physically in the form of bank notes. (3) Foreign Exchange Market transaction participants that violate the provisions as referred to in section (1) and section (2) shall be subject to sanctions in the form of a written warning. Article 41 (1) Foreign exchange Derivative transactions against the rupiah may be carried out: a. transaction rollover; b. early termination; or c. transaction unwind. (2) Derivative transactions may be subject to roll-over, early termination, or unwind as referred to in section (1) under the following conditions: a. regulated in the agreement and/or agreed upon by both parties; and b. supported by supporting documents that validate the transaction adjustment. Part Two Settlement of Transactions in Bankruptcy Conditions Article 42 (1) Foreign Exchange Market transactions as referred to in Article 15 which: a. have met the requirements; and/or b. occured prior to , are required to still be settled as if no bankruptcy has occurred and may not be annulled by the parties directly

19 involved in the transaction as regulated in the Law on the development and strengthening of the financial sector. (2) Foreign Exchange Market transaction participants that violate the provisions as referred to in section (1) shall be subject to sanctions in the form of a written warning. Part Three Close-Out Netting Article 43 (1) In the event of default in a Derivative transaction caused by: a. event of default; and/or b. event of termination from one of the transacting parties, transaction settlement may be carried out through the Close-Out Netting mechanism. (2) Transaction settlement through the Close-Out Netting mechanism as referred to in section (1) may be carried out insofar it has been required or agreed to in the master agreement. (3) If in 1 (one) master agreement as referred to in section (2) there are: a. transactions that fall within the scope of transactions that may be completed through the Close-Out Netting mechanism; and b. transactions that are not included in the scope of transactions that may be completed through the Netting mechanism transaction settlement through the Close-Out Netting mechanism shall be carried out for the transactions as referred to in point a. Article 44 (1) Transaction settlement through the Close-Out Netting mechanism as referred to in Article 43 may be carried out either before or after bankruptcy occurs as regulated in the Law on the development and strengthening of the financial sector. (2) In the event that before the bankruptcy declaration decision is pronounced, the transaction settlement process has been carried out through the Close-Out Netting mechanism, the transaction is required to be completed. (3) Foreign Exchange Market transaction participants that violate the provisions as referred to in section (2) shall be subject to sanctions in the form of a written warning. Article 45 (1) The execution of transaction settlement through the Close￾Out Netting mechanism by bankrupt debtors may not be

20 annulled by the court as regulated in the Law on the development and strengthening of the financial sector. (2) The implementation of the Close-Out Netting mechanism as referred to in section (1) does not require a debt settlement application as regulated in the Law on the development and strengthening of the financial sector. (3) The implementation of Close-Out Netting as referred to in section (1) and section (2) may not be postponed, avoided, or limited by the actions and/or authority of the receiver as regulated in the Law on the development and strengthening of the financial sector. (4) The implementation as referred to in section (3) shall also apply to collateral arrangements which are based on the master agreement as referred to in Article 43 section (2). CHAPTER VIII PROHIBITIONS AND LIMITATIONS ON FOREIGN EXCHANGE MARKET TRANSACTIONS Part One Prohibitions on Foreign Exchange Market Transactions Article 46 (1) Banks are prohibited from conducting: a. Rupiah Transfer to abroad; b. non-deliverable forward foreign exchange transactions against the rupiah abroad; c. provision of overdrafts and credits and/or financing for foreign exchange transactions against the rupiah; d. provision of overdrafts and credits and/or financing in rupiah or foreign currency to Non-Residents; e. purchase of securities in rupiah issued by Non￾Residents; f. investment in rupiah to Non-Residents; and g. other transactions stipulated by Bank Indonesia. (2) The prohibition as referred to in section (1) shall be exempted for: a. certain activities for the settlement of local currency transactions; b. the provision of overdrafts as referred to in section (1) point c and point d in the form of intraday overdrafts c. provision of credit or financing to Non-Residents as referred to in section (1) point d with the requirement of certain economic activities in Indonesia; d. purchase of securities as referred to in section (1) point e relating to certain economic activities in Indonesia e. other transactions as determined by Bank Indonesia (3) Banks that violate the provisions as referred to in section (1) shall be subject to sanctions in the for: a. written warning; and

21 b. obligation to pay 1% (one percent) of the nominal transaction violated for each violation, with a minimum amount of the sanction of the obligation to pay of Rp10,000,000.00 (ten million rupiah) and a maximum of Rp1,000,000,000.00 (one billion rupiah). Article 47 (1) Credit or financing to Non-Residents with certain economic activity requirements in Indonesia as referred to in Article 46 section (2) point c shall include: a. provision of guarantees related to investment activities in Indonesia with the following requirements:

1. obtain a counter-warranty; or
2. there is a guarantee of 100% (one hundred percent) from the guarantee value provided; b. credit or financing in the form of a syndicate that meets the following requirements:
3. involving foreign banks domiciled outside Indonesia;
4. foreign bank contributions exceed than Bank contributions; and
5. provided for financing real sector projects in Indonesia; c. credit card; d. consumption credit or financing in Indonesia; e. intraday overdraft f. negative balance due to administration fee charges; and g. other activities. (2) Securities relating to specific economic activities in Indonesia as referred to in Article 46 section (2) point d shall include: a. securities related to:
6. export and import of goods and/or services, from and to Indonesia; and
7. trade in Indonesia; and b. bank draft issued by a bank abroad for the benefit of Indonesian migrant workers and the rupiah funds are received in Indonesia by Residents. Part Two Rupiah Transfer to Non-Residents Article 48 (1) Recipient Banks of Rupiah transfers are required to ensure that Rupiah transfers to: a. accounts owned by Non-Residents; or b. joint accounts owned by Non-Residents and Residents in Indonesia exceeding a certain threshold has an Underlying Transaction.

22 (2) The certain threshold as referred to in section (1) shall be the equivalent of USD1,000,000.00 (one billion United States dollars) per transaction. (3) Recipient Banks of Rupiah transfers shall be exempted from the obligations as referred to in section (1) for Rupiah Transfers that: a. originate from derivative transactions for foreign exchange transactions against the rupiah; or b. are Rupiah Transfers between Rupiah accounts owned by the same Non-Resident. (4) Banks that violate the provisions as referred to in section (1) shall be subject to sanctions in the form of: a. written warning; and b. obligation to pay amounting to 1% (one percent) of the nominal transaction violated for each violation, with a minimum amount of the sanction of the obligation to pay of Rp10,000,000.00 (ten million rupiah) and a maximum of Rp1,000,000,000.00 (one billion rupiah) CHAPTER IX DATA AND INFORMATION Part One Reporting Article 49 (1) Banks are required to submit reports on activities in the Foreign Exchange Market to Bank Indonesia. (2) The reports submitted to Bank Indonesia as referred to in section (1) shall include: a. periodic report; and b. incidental report. (3) The reports as referred to in section (1) are required to be submitted in a complete, accurate, current, intact, and timely manner to Bank Indonesia. (4) In the event error in the submitted reports, Foreign Exchange Market transaction participants are required to submit report corrections. Article 50 (1) The periodic report as referred to in Article 49 section (2) point a shall be submitted to Bank Indonesia online through the reporting system. (2) Online reporting as referred to in section (1) shall be carried out in accordance with the provisions of Bank Indonesia on reporting. Article 51

23 (1) Banks are required to submit incidental reports to Bank Indonesia in accordance with the reporting deadline set by Bank Indonesia. (2) If necessary, Bank Indonesia may request additional information on the submission of the report as referred to in section (1). (3) Banks that violate the provisions as referred to in section (1) shall be subject to sanctions in the form of a written warning. Part Two Provision of Data and Information Article 52 (1) Foreign Exchange Market transaction participants are required to: a. provide, deliver, and/or ensure the availability of access and provide transaction data for the purposes of supervision, evaluation, and/or other interests; and b. maintain the confidentiality of customer or participant data. (2) Foreign Exchange Market transaction participants that violate the provisions as referred to in section (1) shall be subject to sanctions in the form of a written warning. CHAPTER X PRINCIPLES OF PRUDENCE AND RISK MANAGEMENT Article 53 (1) Foreign Exchange Market transaction participants are required to apply the principles of prudence and effective risk management. (2) In conducting business activities, Foreign Exchange Market transaction participants must take account of obligations regarding the risk of money laundering and/or terrorism financing crimes as regulated in the laws and regulations. (3) Foreign Exchange Market transaction participants that violate the obligations as referred to in section (1) shall be subject to sanctions in the form of a written warning. Article 54 (1) The application of risk management for Foreign Exchange Market transaction participants as referred to in Article 53 section (1) shall include at a minimum: a. active supervision by management; b. policies and procedures and the adequacy of organizational structures; c. risk management process and risk management functions which shall include at minimum:

24

1. risk management process framework;
2. information technology-related risk management; and
3. disaster recovery-related risk management; d. human resources; and e. internal control. (2) The application of risk management as referred to in section (1) shall be carried out for the risks encountered. CHAPTER XI SUPERVISION Article 55 (1) Bank Indonesia shall supervise Foreign Exchange Market transaction participants. (2) The supervision as referred to in section (1) shall include: a. indirect supervision; and/or b. examination. Article 56 (1) In implementing supervision as referred to in Article 55 section (1), Foreign Exchange Market transaction participants are required to provide and submit data, information, statements, and/or explanations required by Bank Indonesia. (2) Foreign Exchange Market transaction participants are required to ensure the accuracy, completeness, and accuracy of data, information, and/or statements submitted to Bank Indonesia. (3) Foreign Exchange Market transaction participants that violate the provisions as referred to in section (1) and section (2) shall be subject to sanctions in the form of a written warning. Article 57 (1) Bank Indonesia may assign other parties to carry out the examination as referred to in Article 55 section (2) point b. (2) Other parties assigned to carry out the examination as referred to in section (1) are required to maintain the confidentiality of data, information, and/or statements obtained from the results of the examination. (3) Other parties which violate the provisions as referred to in section (2) shall be subject to sanctions in the form of a written warning. Article 58 (1) Bank Indonesia may supervise third parties that cooperate with Foreign Exchange Market transaction participants. (2) Foreign Exchange Market transaction participants that cooperate with third parties as referred to in section (1) are required to ensure that Bank Indonesia may:

25 a. have access to data and information required for supervision; and b. supervise third parties that cooperate with participants in the Foreign Exchange Market transaction. (3) Foreign Exchange Market transaction participants that violate the provisions as referred to in section (2) shall be subject to administrative sanctions in the form of a written warning. CHAPTER XII PROCEDURES FOR IMPOSING SANCTIONS Article 59 (1) In the event that Bank Indonesia imposes administrative sanctions in the form of a written warning, Bank Indonesia shall deliver the written warning through letter to the party subject to the sanction. (2) The written warning as referred to in section (1) may be copied to the relevant authorities. Article 60 (1) In the event that Bank Indonesia imposes administrative sanctions in the form of an obligation to pay, Bank Indonesia shall debit the Bank's rupiah current account at Bank Indonesia. (2) Administrative sanctions in the form of the obligation to pay shall be calculated in Rupiah using: a. Jakarta Interbank Spot Dollar Rate; b. non-USD/IDR reference rate; or c. other exchange rates determined by Bank Indonesia, on the transaction date. CHAPTER XIII CORRESPONDENCE Article 61 (1) Correspondence related to the arrangement and development as well as submission of consultation letters on the use of smart contracts shall be addressed to: Bank Indonesia Bicara Contact Center Department of Communication Bank Indonesia Jalan M. H. Thamrin No. 2 Jakarta 10350 email: bicara@bi.go.id . (2) Correspondence related to periodic reporting shall comply with the provisions of Bank Indonesia on reporting. CHAPTER XIV TRANSITIONAL PROVISIONS

26 Article 63 Upon the effective enforcement of this Regulation of Member of Board of Governors: a. Regulation of the Members of the Board of Governors Number 24/10/PADG/2022 dated 4 July 2022 on the Implementation Regulations for Transactions in th Foreign Exchange Market; and b. Regulation of the Members of the Board of Governors Number 24/11/PADG/2022 dated 4 July 2022 on Domestic Non-Deliverable Forward Transactions, are repealed and declared invalid. Article 64 This Regulation of Member of Board of Governors comes into force on 30 September 2024. In order that any person may know hereof, it is hereby ordered that this Regulation of Member of the Board of Governors be promulgated in the State Gazette of the Republic of Indonesia. Issued in Jakarta on 23 September 2024 THE MEMBER OF THE BOARD OF GOVERNORS, Signed. DESTRY DAMAYANTI

27 ELUCIDATION OF REGULATION OF MEMBER OF BOARD OF GOVERNORS NUMBER 11 OF 2024 ON FOREIGN EXCHANGE MARKET TRANSACTIONS I. GENERAL In order to realize Bank Indonesia's objective of maintaining the stability of the rupiah value, Bank Indonesia regulates, develops, and supervises the mechanism for Foreign Exchange Market transactions and the mechanism for establishing reference prices in the Foreign Exchange Market. The regulation, development, and supervision in the Foreign Exchange Market shall be implemented with a transformative perspective that aligned with the direction of Bank Indonesia's transformation and shall take international best practices into account to support optimal and efficient domestic foreign exchange liquidity thereby accelerate the realization of a modern and advanced Foreign Exchange Market. In respect of the foregoing, it has been deemed necessary to establish Regulation of Member of the Board of Governors on Foreign Exchange Market Transactions which regulates products, reference pricing, types of transactions, Underlying Transactions, transaction limits, and settlement of Foreign Exchange Market transactions. II. ARTICLE BY ARTICLE Article 1 Sufficiently Clear. Article 2 Sufficiently Clear. Article 3 Section (1) Sufficiently Clear. Section (2) Point a Sufficiently Clear. Point b Master agreements and/or standard contracts shall include the International Swaps and Derivatives Association Master Agreement and master agreements and/or standard contracts established from several master agreements and/or standard contracts such as the Cross-Product Master Agreement, including collateral arrangements such as credit support annex, credit support agreement, and/or contract on margin application.

28 The term "Association" means an association at the national and/or international level. Point c Other contracts shall include foreign exchange agreements. Section (3) Written confirmations shall include trade confirmations on financial market infrastructure systems such as dealing conversations and/or the Society for Worldwide Interbank Financial Telecommunication (SWIFT) message. Section (4) Sufficiently clear. Section (5) Sufficiently clear. Section (6) Sufficiently clear. Section (7) Sufficiently clear. Article 4 Sufficiently clear. Article 5 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) Certain Foreign Exchange Market products shall include Foreign Exchange Market products that use smart contracts that have been: a. consulted and determined by Bank Indonesia; and b. transacted and traded in the Foreign Exchange Market. Section (4) Sufficiently clear. Section (5) Sufficiently clear. Article 6 Sufficiently clear. Article 7 Section (1) The term "Business days" means Bank Indonesia business days, excluding days designated by Bank Indonesia to carry out limited operational activities. Section (2) Sufficiently clear. Section (3) See the elucidation of section (1). Section (4) Sufficiently clear. Section (5) Sufficiently clear. Article 8 See the elucidation of Article 7 section (1).

29 Article 9 Section (1) See the elucidation of Article 7 section (1). Section (2) Sufficiently clear. Section (3) Sufficiently clear. Article 10 See the elucidation of Article 7 section (1). Article 11 Sufficiently clear. Article 12 Section (1) Sufficiently clear. Section (2) Point a Sufficiently clear. Point b Sufficiently clear. Point c Digital currency shall include digital rupiah as regulated in the Law on Currency. Section (3) Sufficiently clear. Article 13 Section (1) Point a The term "Financial services institutions" means institutions that carry out activities in the banking, capital markets, insurance, pension fund, financing institution, and other financial services institutions sectors based on the provisions of laws and regulations in the financial services sector. Point b The term "Corporation" means an organized group of people and/or assets, whether incorporated or unincorporated. Point c Sufficiently clear. Point d Sufficiently clear. Section (2) Point a Sufficiently clear. Point b Non-Residents are non-residents as referred to in the Law on the development and strengthening of the financial sector. Article 14 Sufficiently clear. Article 15 Section (1)

30 Sufficiently clear. Section (2) Point a Sufficiently clear. Point b See the elucidation of Article 7 section (1). Point c See the elucidation of Article 7 section (1). Section (3) Sufficiently clear. Article 16 Section (1) Sufficiently clear. Section (2) Point a Sufficiently clear. Point b Sufficiently clear. Point c The term "Non-derivative" means the placement of funds in the form of savings, current accounts, deposits, and negotiable certificates of deposit. Section (3) Sufficiently clear. Article 17 Section (1) The term "Third parties" means parties representing Foreign Exchange Market transaction participants to carry out foreign exchange transactions against the rupiah with Banks, including in the form of fund transfer organizers and trading business actors using e-commerce. Section (2) Sufficiently clear. Section (3) The term "Third party’s customers" means service users or consumers of third parties. Section (4) Written statements shall include: a. written statement signed by:

1. the relevant party to individuals; or
2. the authorized party based on the articles of association of the business entity in question or the party given authority through a power of attorney by the official, for those other than individuals; b. written statement in electronic form which may be submitted through:
3. official email;
4. the Society of Worldwide Interbank Finansial Telecommunication (SWIFT) message
5. Bank electronic systems; or c. negative confirmation. Section (5) Sufficiently clear. Section (6)

31 Sufficiently clear. Article 18 Section (1) The term "Cover hedging" means hedging carried out by a Bank to a Non-Resident in the form of bank abroad for foreign exchange transactions that have been carried out by Bank customers to Banks. Example: PT X in Indonesia conducts a foreign exchange derivative transaction against the rupiah with Bank A in Indonesia amounting to USD10,000,000.00 (ten million United States dollars) with certain Underlying Transactions. Bank A may carry out cover hedging of USD10,000,000.00 (ten million United States dollars) with Bank M abroad. Section (2) The term “Re-hedge transaction" means hedging carried out by a Bank to a domestic Bank for foreign exchange transactions that have been carried out by the Bank customers to the Bank. Example: PT X in Indonesia conducts a foreign exchange derivative transaction against the rupiah with Bank A in Indonesia amounting to USD10,000,000.00 (ten million United States dollars) with certain Underlying Transactions. For this transaction, Bank A may carry out re-hedge amounting to USD10,000,000.00 (ten million United States dollars) with Bank B in Indonesia. Bank B may carry out cover hedging of USD10,000,000.00 (ten million United States dollars) with Bank M abroad. Bank B must request the Underlying Transaction submitted by PT X from Bank A. Article 19 Sufficiently clear. Article 20 Section (1) Sufficiently clear. Section (2) Sufficiently clear. Section (3) Point a The transaction date shall include business days. Point b The currency pair shall include USD/IDR. Point c Types of transaction settlement shall include deliverables with gross settlement or non-deliverable by taking the difference in obligations on transactions (netting) into account. Point d The transaction settlement currency shall include the rupiah. Point e The transaction settlement date shall include business days. Point f The minimum transaction nominal is USD1,000,000.00 (one million United States dollars).

32 Point g Rounding of nominal transactions shall include rounding to Rp1.00 (one rupiah) or USD1.00 (one United States dollar). Point h The transaction tenor shall include tenors of 1 (one) week, 1 (one) month, 3 (three) months, 6 (six) months, and 1 (one) year. Section (4) Sufficiently clear. Article 21 Sufficiently clear. Article 22 Section (1) Sufficiently clear. Section (2) Point a Sufficiently clear. Point b Sufficiently clear. Point c The exemption from the ownership of Underlying Transactions for foreign exchange transactions against rupiah transacted with a CCP shall not apply to such transactions before they are cleared through the CCP. Example: PT A carries out a foreign exchange Derivative transaction against the rupiah with Bank B which will be cleared through CCP. For this transaction, PT A is required to submit the Underlying Transaction. When cleared through CCP, the transaction is novated into a transaction between PT A and CCP and Bank B and CCP. For both of these transactions, no Underlying Transaction is required. Section (3) Sufficiently clear. Article 23 Section (1) Point a An Underlying Transaction may be used for more than 1 (one) foreign exchange transaction against the rupiah as long as the total nominal value of all foreign exchange transactions against the rupiah is at a maximum of the nominal value of the Underlying Transaction. Point b Sufficiently clear. Section (2) Example: Company XYZ has an Underlying Transaction with a maturity date of 2 December 2024. For this Underlying Transaction, on 1 June 2024, Company XYZ entered into a domestic non-deliverable forward transaction with a maturity date of 31 October 2024. The fixing transaction shall use the exchange rate on 29 October 2024.

33 Starting from 29 October 2024 (fixing date), Company XYZ may conduct other foreign exchange transactions in the form of cash transactions and/or Derivative transactions with the same Underlying Transaction as long as the transaction nominal is a maximum of the Underlying Transaction nominal and the transaction period is the same as the Underlying Transaction period. Section (3) Sufficiently clear. Article 24 Sufficiently clear. Article 25 Sufficiently clear. Article 26 Point a Example: On 28 May 2025, customer A will make a spot foreign currency purchase transaction against the rupiah amounting to USD100,000.00 (one hundred thousand United States dollars) without being supported by an Underlying Transaction. On 2 June 2025, customer A may again make a spot foreign currency purchase transaction against the rupiah amounting to USD100,000.00 (one hundred thousand United States dollars) without being supported by an Underlying Transaction. Point b Number 1 Example: On 30 May 2025, which is the transaction date, customer B will make a spot foreign currency purchase transaction against the rupiah amounting to USD100,000.00 (one hundred thousand United States dollars) which will be settled on 2 June 2025, which is the settlement date. The calculation of customer B's spot purchase transaction to 30 May 2025 shall be USD100,000.00 (one hundred thousand United States dollars). During June 2025, customer B may make spot foreign currency purchase transactions against the rupiah of up to USD100,000.00 (one hundred thousand United States dollars) which is a certain threshold without being supported by Underlying Transaction documents. Number 2 Example: On 3 June 2025, customer A will make a spot purchase transaction of USD80,000.00 (eighty thousand United States dollars) without an Underlying Transaction. Furthermore, on 17 June 2025, customer A will make a today purchase transaction of USD70,000.00 (seventy thousand United States dollars). To be able to carry out this transaction, customer A must submit the Underlying Transaction because the total transactions during June 2025 have exceeded a certain threshold. Number 3 Example:

34 On 3 June 2025, customer A will make a forward purchase transaction of USD80,000.00 (eighty thousand United States dollars) without an Underlying Transaction. On 17 June 2025, customer A will make a swap purchase transaction of USD70,000.00 (seventy thousand United States dollars). Customer A may make a swap purchase transaction without being supported by an Underlying Transaction. On 20 June 2025, customer A will make a call option transaction of USD100,000.00 (one hundred thousand United States dollars). Customer A may make the call option purchase transaction without being supported by an Underlying Transaction. On 24 June 2025, customer A will make a call spread option purchase transaction of USD100,000.00 (one hundred thousand United States dollars). Customer A may make the call spread option purchase transaction without being supported by an Underlying Transaction. Article 27 Section (1) Point a Included in current account transaction activities are exports, imports, and income transfers (primary and secondary). Point b Included in financial transaction account activities are direct investments and portfolio investments. Point c Included in capital account transaction activities are, among other things, capital transfers. Point d Credit or financing from Banks to Residents for trade and investment purposes shall include the issuance of securities in foreign currency. Example: PT JF, a company operating in Indonesia, receives financing from Bank ABC amounting to USD100,000,000.00 (one hundred million United States dollars). PT JF intends to change its debt exposure from United States dollars to rupiah by conducting a cross-currency swap transaction. Financing in foreign currency from Bank ABC may be used as the Underlying Transaction for the cross-currency swap transaction. Point e Sufficiently clear. Point f Sufficiently clear. Section (2) Point a All foreign currency purchase transactions against the rupiah shall include cash purchases and derivative transactions to purchase foreign currency. Point b Fund placement shall include savings, current accounts, time deposits, and negotiable certificates of deposit. Point c Sufficiently clear.

35 Point d The term “Crypto assets” means a digital representation of value that can be stored and transferred using technology that enables the use of distributed ledgers such as blockchain to verify transactions and ensure the security and validity of stored information, is not guaranteed by a central authority such as a central bank but is issued by a private party, can be transacted, stored, and transferred or transferred electronically, and can be a digital coin, token, or other representations of assets that includes backed-crypto assets and unbacked crypto assets. Section (3) Point a "Placement of funds in rupiah owned by Non-Residents" is all placement of rupiah funds in the form of cash accounts owned by Non-Residents, including in the form of savings, current accounts, or deposits, for investment purposes, to accommodate investment results or other purposes. Point b Sufficiently clear. Point c Sufficiently clear. Point d Sufficiently clear. Section (4) Sufficiently clear. Article 28 Section (1) Point a Sufficiently clear. Point b Primary income transactions shall include: a. transactions for receipt and payment of manpower compensation; and b. investment income from direct investments, portfolio investments, and/or other investments. Point c Secondary income transactions shall include: a. government sector receipts and payments; and b. receipts and payments of other sectors, including remittances and other similar transactions. Section (2) Sufficiently clear. Section (3) Sufficiently clear. Section (4) Sufficiently clear. Article 29 Point a The net amount of the foreign currency sale transaction against the rupiah shall be calculated from the difference between the foreign currency sale transactions against the rupiah and foreign currency purchase transaction against the rupiah carried out by

36 non-Bank foreign exchange business organizers with their customers. Point b Sufficiently clear. Article 30 Example: PT A has an obligation to pay foreign currency to vendors abroad in the amount of USD171,500.00 (one hundred seventy-one thousand five hundred United States dollars). The Underlying Transaction value shall be rounded up to USD180,000.00 (one hundred and eighty thousand United States dollars), therefore PT A may carry out a foreign exchange transaction against the rupiah amounting to USD180,000.00 (one hundred and eighty thousand United States dollars). PT B has an obligation to pay foreign currency to vendors abroad amounting to HKD123,456.00 (one hundred twenty-three thousand four hundred fifty-six Hong Kong dollars). The Underlying Transaction value shall be rounded up to HKD130,000.00 (one hundred and thirty thousand Hong Kong dollars), therefore PT B mat carry out a foreign exchange transaction against the rupiah amounting to HKD130,000.00 (one hundred and thirty thousand Hong Kong dollars). Article 31 Section (1) Point a The term "Final Underlying Transaction documents" means documents that show the time and/or amount of receipt or need for foreign currency that does not change. Point b The term "Projected Underlying Transaction documents" means documents that show the time and/or amount of receipt or need for foreign currency based on the results of rational calculations. Section (2) Sufficiently clear. Article 32 Section (1) The term "Validity" shall include: a. the documents do not conflict with the provisions of laws and regulations; and b. documents are issued by a company or agency whose existence can be confirmed. The term "Reasonableness" shall include: a. the documents comply with generally accepted market practices; b. transactions are carried out in accordance with the Underlying Transaction documents; and c. transactions are carried out in accordance with historical data held by the Bank and/or in accordance with the needs of Foreign Exchange Market transaction participants. Section (2) Sufficiently clear. Article 33 Sufficiently clear.

37 Article 34 Point a Example 1: On 1 September 2025, Customer Y will make a forward purchase transaction of USD5,000,000.00 (five million United States dollars) to Bank A. For the transaction, Customer Y submits the Underlying Transaction document in the form of a payment document to a supplier abroad in the amount of USD7,000,000.00 (seven million United States dollars) which will mature on 3 November 2025. The transaction will be carried out at Bank A's branch office in Jakarta. On 1 October 2025, Customer Y will again plan to purchase foreign currency against the rupiah through Bank A's branch office in Surabaya. Customer Y may make a forward purchase transaction of USD2,000,000.00 (two million United States dollars) as long as the maturity date and the nominal value do not exceed that stated in the Underlying Transaction which will mature on 3 November 2025. Example 2: PT A's customer is an automotive importer that has an Underlying Transaction document in the form of an invoice for purchasing automotive spare parts worth USD5,000,000.00 (five million United States dollars), which will mature on 19 December 2025. On 26 September 2025, PT A will make a spot transaction to Bank B in the amount of USD1,000,000.00 (one million United States dollars), then on 6 October 2025, PT A may conduct another foreign exchange transaction against the rupiah of up to USD4,000,000.00 (four million United States dollars) to Bank B using the same Underlying Transaction document as long as it has not matured and does not exceed the nominal Underlying Transaction. Point b Example: Importer AN is an automotive importer that has an Underlying Transaction document in the form of an invoice for purchasing automotive spare parts worth USD5,000,000.00 (five million United States dollars), which will mature on 31 December 2025. On 1 September 2025, importer AN will make a domestic non￾deliverable forward purchase transaction with Bank A amounting to USD1,000,000.00 (one million United States dollars) which will mature on 3 November 2025. Then on 1 October 2025, importer AN will make a domestic non￾deliverable forward purchase transaction of USD3,000,000.00 (three million United States dollars) to Bank B using the spare part invoice. Transaction with Bank B may not be carried out because the transaction is carried out with a different bank and uses the same Underlying Transaction document, namely the automotive spare part purchase invoice. Point c Number 1 On 1 August 2025, Customer Y, which is a food and beverage importer, will order goods and issue a purchase order to an exporter abroad. For the purchase of these goods, Customer Y will receive an invoice issued by the exporter abroad. Customer Y may make purchases of foreign currency against the rupiah by using

38 one of the Underlying Transaction documents in the form of purchase orders or invoices. Number 2 On 4 November 2025, Customer Z, which is an importer of ready￾made clothing, will order goods and issue a purchase order to exporter A abroad. On 5 November 2025, Customer Z will make a purchase offoreign currency against the rupiah using the Underlying Transaction document in the form of said purchase order. On 14 November 2025, Customer Z will receive an invoice issued by exporter A. With the said invoice, Customer Z may not make a foreign currency purchase against the rupiah because of theprevious purchase using the Underlying Transaction document in the form of said purchase order originating from the same economic activity. Article 35 Section (1) The term "Written statement" may be in the form of: a. a written statement signed by the customer concerned for individual customers; b. a written statement signed by an authorized party based on the articles of association of the business entity in question or a party given authority through a power of attorney by the official, for those other than individuals; c. an authentic written statement from the customer, including an official email, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) message, or the Bank's electronic system; or d. negative confirmation. Section (2) Sufficiently clear. Section (3) Example: On 6 June 2025, customer JF will make a foreign currency purchase transaction against the rupiah with Bank ABC amounting to USD70,000.00 (seventy thousand United States dollars) without being supported by an Underlying Transaction. Bank ABC shall ask JF customers to submit supporting documents in the form of a written statement. On 13 June 2025, JF customer will again make a foreign currency purchase transaction against the rupiah with Bank ABC amounting to USD10,000.00 (ten thousand United States dollars) without being supported by an Underlying Transaction. For this transaction, Bank ABC does not need to ask JF customers to submit supporting documents in the form of a written statement. On 1 July 2025, customer JF will make a foreign currency purchase transaction against the rupiah with Bank ABC amounting to USD80,000.00 (eighty thousand United States dollars) without being supported by an Underlying Transaction. Bank ABC must ask customer JF to submit supporting documents in the form of a new statement letter because the transaction is carried out in a different month. Section (4) Sufficiently clear. Section (5) Sufficiently clear.

39 Article 36 Section (1) Point a Sufficiently clear. Point b See the elucidation of Article 35 section (1). Section (2) Sufficiently clear. Section (3) Sufficiently clear. Section (4) Sufficiently clear. Article 37 Sufficiently clear. Article 38 Section (1) Banks shall understand the track record of Foreign Exchange Market transaction participants well, including based on foreign exchange transactions against the rupiah that are carried out routinely from time to time. Section (2) Example: On 19 November 2025, customer A will make a cash transaction to purchase foreign currency against the rupiah amounting to USD120,000.00 (one hundred and twenty thousand United States dollars). For this purchase, Bank X is required to ensure that customer A submits the Underlying Transaction documents and supporting documents. Furthermore, on 15 December 2025, customer A will make a cash transaction to purchase foreign currency against the rupiah from Bank X amounting to USD150,000.00 (one hundred and fifty thousand United States dollars). For this purchase, Bank X is required to ensure that customer A submits the Underlying Transaction documents without the need for supporting documents. Moreover, of 21 January 2026, customer A will make a cash transaction to purchase foreign currency against the rupiah from Bank X amounting to USD130,000.00 (one hundred and thirty thousand United States dollars). For this purchase, Bank X is required to ensure that customer A submits the Underlying Transaction documents and supporting documents. Section (3) Example: On 6 January 2025, PT C will enter into a forward transaction to purchase United States dollars against the rupiah from Bank X for the first time in that year amounting to USD150,000.00 (one hundred and fifty thousand United States dollars). For this purchase, Bank X is required to ensure that PT C submits the Underlying Transaction documents and supporting documents. Article 39 Point a The term "Transfer of gross principal funds" means the transfer of real funds for each sale transaction and/or purchase transaction

40 of foreign currency against the rupiah at the full nominal value of the transaction or its equivalent. Point b Sufficiently clear. Article 40 Section (1) Example: Customer X makes a spot transaction to purchase United State dollars against the rupiah with Bank ABC in the amount of USD1,000,000.00 (one million United States dollars) with an exchange rate of USD/IDR 15,000.00 (fifteen thousand rupiah per United States dollar). On the settlement date, customer X is required to make a transfer of United States dollar funds through a transfer of gross principal funds of USD1,000,000.00 (one million United States dollars) in real terms and it shall be recorded in the Bank's treasury system, which may be proven based on the transaction settlement time sequence. Bank ABC is required to complete foreign exchange transactions against the rupiah by transferring the gross principal of Rp15,000,000,000.00 (fifteen billion rupiah) in real terms and it shall be recorded in the Bank's treasury system which may be proven based on the transaction settlement time sequence. Section (2) Sufficiently clear. Section (3) Sufficiently clear. Article 41 Section (1) Point a Example: On 2 December 2025, customer A will make a forward purchase transaction of USD/IDR with Bank X for a period of 3 (three) months until 2 March 2026. Before the due date, customer A receives information that the shipment of goods by the seller abroad is delayed for 1 (one) month so that the payment due date for the Underlying Transaction will be postponed to 2 April 2026. To extend the transaction, on 26 February 2026, customer A may roll over the transaction with Bank X from the previous due date of 2 March 2026 to 2 April 2026. Point b Example 1: On 2 December 2025, customer A will make a forward purchase transaction of USD/IDR with Bank X for a period of 3 (three) months until 2 March 2026. Before the due date, customer A receives information that the shipment of goods by the seller abroad could be accelerated by 1 (one) month, so that the payment due date will be advanced to 2 February 2026. To accelerate the completion of the transaction, on 29 January 2026, customer A may make an early termination with Bank X from the previous due date of 2 March 2026 to 2 February 2026. Example 2:

41 On 2 December 2025, customer A will make a forward purchase transaction of USD/IDR with Bank X for a period of 3 (three) months until 2 March 2026. Before the due date, customer A receives information that there is force majeure so that the sale and purchase transaction will be cancelled by the seller abroad. Based on this, customer A may make an early termination with Bank X. For early termination settlement, Bank X and customer A may calculate the mark￾to-market for the transaction. Point c Example: On 2 December 2025, customer A will make a forward purchase transaction of USD/IDR with Bank X for a period of 3 (three) months until 2 March 2026. Before the due date, customer A receives information that a force majeure occurs so that the sale and purchase transaction will be cancelled by the seller abroad. Based on this, customer A may unwind the transaction by conducting a forward sale transaction with Bank X. Section (2) Sufficiently clear. Article 42 Sufficiently clear. Article 43 Sufficiently clear. Article 44 Sufficiently clear. Article 45 Sufficiently clear. Article 46 Section (1) Point a Sufficiently clear. Point b Sufficiently clear. Point c The term “Overdraft” means a negative balance in a customer’s current account that cannot be paid in full by the end of the day. Example: Customer N makes a forward purchase transaction with Bank M of USD100,000.00 (one hundred thousand United States dollars) for a period of 3 (three) months. At the time of maturity, customer N does not have the rupiah funds to fulfill the obligations. Due to this, Bank M is prohibited from providing rupiah credit to customer N which will be used to complete the forward transaction. Point d The term “Overdraft” means, examine the elucidation of point c.

42 The term "Credit" means the provision of money or equivalent invoices, based on a loan agreement or contract between a bank and another party that requires the borrower to repay the debt after a certain period of time with interest. Point e Sufficiently clear. Point f Sufficiently clear. Point g Sufficiently clear. Section (2) Sufficiently clear. Section (3) Sufficiently clear. Article 47 Section (1) Point a Sufficiently clear. Point b The term "Credit or financing in the form of syndication" means credit or financing provided simultaneously by more than 1 (one) bank to a particular party. Number 1 Sufficiently clear. Number 2 Sufficiently clear. Number 3 The term “Real sector” means the production sector and trade in goods and services. Point c Sufficiently clear. Point d Sufficiently clear. Point e Intraday overdraft in Rupiah or foreign currency shall be supported by authentic documents that confirm the funds have been received into the account on the same day. Point f Sufficiently clear. Point g Sufficiently clear. Section (2) Point a Number 1 Valuable documents related to export and import activities of goods and/or services, from and to Indonesia, shall include export bills of exchange and banker's acceptances based on letter of credit and non￾letter of credit transactions. Number 2 Securities related to trade in Indonesia shall include bills of exchange or banker's acceptances based on domestic documentary credit transactions. Point b

43 The term "Bank draft” means an order to pay a certain amount to the party whose name is listed on the bank draft. Article 48 Section (1) Sufficiently clear. Section (2) Example: There is a Rupiah Transfer into the account of Non-Resident XYZ at Bank ABC in the amount of Rp30,000,000,000.00 (thirty billion rupiah) or the equivalent of USD2,000,000.00 (two million United States dollars) based on the Jakarta Interbank Spot Dollar Rate of USD/IDR 15,000.00 (fifteen thousand rupiah per United States dollar). For the Rupiah Transfer, Bank ABC is required to request the Underlying Transaction documents from Non-Resident XYZ. Section (3) Sufficiently clear. Section (4) Sufficiently clear. Article 49 Sufficiently clear. Article 50 Section (1) Sufficiently clear. Section (2) The provisions of Bank Indonesia on reporting shall include the provisions of Bank Indonesia in integrated reports of commercial banks. Article 51 Sufficiently clear. Article 52 Sufficiently clear. Article 53 Sufficiently clear. Article 54 Sufficiently clear. Article 55 Sufficiently clear. Article 56 Sufficiently clear. Article 57 Sufficiently clear. Article 58 Sufficiently clear. Article 59

44 Sufficiently clear . Article 60 Sufficiently clear . Article 61 Sufficiently clear . Article 62 Sufficiently clear . Article 63 Sufficiently clear . Article 64 Sufficiently clear .