Bank Indonesia Regulation Number 16/17/PBI/2014 Concerning Foreign Exchange Transactions against Rupiah between Banks and Foreign Parties

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9/17/2014 9:00 AM

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Judul Bank Indonesia Regulation Number 16/17/PBI/2014 Dated 17 September 2014 Concerning Foreign Exchange Transactions against Rupiah between Banks and Foreign Parties

Peraturan Bank Indonesia

Moneter dan Pasar Keuangan

Berlaku

Bank Indonesia Regulation

Monetary

Effective

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Page Content Regulation

:

Bank Indonesia Regulation Number 16/17/PBI/2014 Dated 17 September 2014 Concerning Foreign Exchange Transactions against Rupiah between Banks and Foreign Parties

Effective

:

10 November 2014

Summary

:

I.

This Bank Indonesia Regulation ( PBI )

is issued to encourage the deepening of domestic foreign exchange market through a comprehensive regulation related to foreign exchange transactions against Rupiah between Banks and Foreign Parties. This PBI constitutes an improvement from several regulations related to foreign exchange transactions against Rupiah in order to provide clearer guidelines on the transactions and flexibility to the market participants.

II.

Substances regulated in the PBI are concerning Foreign Exchange Transactions against Rupiah between Banks and Foreign Parties, among others :

1.

Banks must have written internal guidelines in performing Foreign Exchange Transactions against Rupiah.

2.

The Foreign Exchange Transactions against Rupiah performed above the threshold must have Underlying Transactions.

3.

Underlying Transactions for Foreign Exchange Transactions against Rupiah between Banks and Foreign Parties include all activities of :

a.

goods and service trading, both domestic and overseas; and/or

b.

investments in the form of foreign direct investment, portfolio investment, loans, capital, and other investments both domestic and overseas .

4.

Not included as Underlying Transactions for Foreign Exchange Transactions against Rupiah between Banks and Foreign Parties are:

a.

using Bank Indonesia Certificates for Derivative Transactions; and

b.

placement in Banks (vostro) among others in the form of savings, demand deposits, time deposits, and Negotiable Certificate of Deposit (NCD).

5.

Spot Transactions shall be regulated as follows:

a.

Purchase of Foreign Currencies against Rupiah through Spot Transactions by Foreign Parties to Banks up to USD100,000.00 (one hundred thousand US Dollar) or its equivalent per month per Foreign Party can be performed without Underlying Transactions.

b.

Purchase of foreign currencies against Rupiah is prohibited from exceeding the nominal value of Underlying Transactions.

6.

Derivative Transactions shall be regulated as follows:

a.

Purchase and/or sale of foreign currencies against Rupiah through derivative transactions by Foreign Parties to Banks up to USD1,000,000.00 (one million US Dollar) or its equivalent both per individual transaction and per position (outstanding) of each sale Derivative Transaction and purchase Derivative Transaction per Bank can be performed without Underlying Transactions.

b.

Derivative Transactions are prohibited from exceeding the nominal value and Term of the Underlying Transactions.

c.

Term of Derivative Transactions with Underlying Transactions in the form of investments is 1 (one) week at minimum, calculated based on the effective date of Derivative Transactions up to the value date of Derivative Transactions, and not exceeding the investment term at maximum, unless for forward transactions of foreign currencies purchases against Rupiah between Banks and Foreign Parties for settlements of investment activities.

d.

Derivative Transactions can be performed on income from investment in the form of dividends, which amount and receiving time cannot be ascertained yet.

e.

Derivative Transactions can be performed by Banks with Foreign parties in the context of cover hedging of Banks.

7.

Banks are prohibited from performing transactions with Foreign Parties, among others on:

a.

Lending or financing in Rupiah and/or foreign currencies, except for:

1)

Non-cash credit or financing or guarantee related to investment activities in Indonesia obtaining counter guaranty from a Prime Bank or the availability of security deposit of 100% from the value of guarantee’s given.

2)

Credit or financing in the form of syndicates.

3)

Credit Cards.

4)

Consumption credit or financing used in the country.

5)

Intraday overdrafts in Rupiah and foreign currencies supported by authenticated documents showing confirmation on the inflow of funds to the concerned account on the same day.

6)

Overdrafts in Rupiah and foreign currencies for administrative costs.

7)

Takeover of bills from the government appointed body that has to manage the concerned Bank assets in the context of restructuring Indonesia’s banking by Foreign Parties whose payments guaranteed by Prime Banks.

b.

Placements in Rupiah.

c.

Purchase of Securities in Rupiah issued by Foreign Parties, excluding:

1)

Purchase of Securities related to activities of goods export from Indonesia and goods import to Indonesia as well as domestic trades.

2)

Purchase of bank drafts in Rupiah issued by banks overseas for the interest of Indonesian Workers ( TKI ).

d.

Interoffice billings in Rupiah.

e.

Interoffice billings in foreign currencies in the context of Lending or Financing in foreign countries.

f.

Capital investments in Rupiah.

g.

Foreign Exchange Transactions against Rupiah if the transactions or potential transactions are related to structured products.

8.

Rupiah Transfers shall be regulated as follows:

a.

Banks are prohibited to perform Rupiah Transfers to foreign countries.

b.

Rupiah Transfers can be performed to Foreign Parties’ accounts or joint accounts in domestic Banks with a nominal value up to equivalent of USD1,000,000.00 (one million US Dollar) or inter-accounts Rupiah transfer owned by the same Foreign Party can be performed.

c.

Rupiah Transfer with a nominal value above USD1,000,000.00 (one million US Dollar) must be based on Underlying Transactions, except for Rupiah Transfer performed in order to settle transactions through roll over, early termination, and unwinding.

d.

Banks receiving Rupiah transfers must conduct verification over the status of Rupiah Transfer funds beneficiaries.

9.

Transaction settlements shall be regulated as follows:

a.

Settlements of Spot Transactions between Banks and Foreign Parties must be performed by full movement of funds .

b.

Settlement of Derivative Transactions between Banks and Foreign Parties may be done by netting for transactions of roll over, early terminations, and unwinding.

c.

Settlements of Derivative Transactions by netting with a nominal value not to exceed USD1,000,000.00 (one million US Dollar) may be performed provided that they are supported by Underlying Transactions. In case at the time of transactions settlements, the Foreign Parties are not able to submit the Underlying Transaction documents, then the settlements should be performed by full movement of funds.

d.

Term of Derivative Transactions for the settlements of roll over, early termination, and unwinding transactions shall be 1 (one) week at minimum.

10.

Documents of transactions that must be attached in the transactions of foreign currencies purchase and/or sale

against Rupiah are set as follows:

11.

Submission of documents is regulated as follows:

a.

Underlying Transaction documents and/or supporting documents are submitted for each transaction based on date of transactions.

b.

Underlying Transaction documents and/or supporting documents for Spot Transactions must be received by Banks no later than the value date.

c.

Underlying Transaction documents and/or supporting documents for Derivative Transactions must be received by Banks no later than five business days after the transaction date.

d.

In the event the Derivative Transactions have Underlying Transactions in the form of goods and service trading activities, both domestic and overseas, with maturity date less than 5 business days after the transaction date, the Underlying Transaction documents and/or supporting documents must be received by Banks no later than the maturity date.

12.

Banks must administer documents of Underlying Transaction of Foreign Exchange against Rupiah.

13.

Banks that violate regulation in this PBI shall be imposed sanctions as follows:

a.

an administrative sanction in the form of a written warning.

b.

a financial penalty

of 1% from the nominal value of the violated transaction for every violation, with a penalty amount of no less than Rp10.000.000,00 (ten million Rupiah) and no greater than Rp1.000.000.000,00 (one billion Rupiah).

14.

Calculation for financial penalties shall use Jakarta Interbank Spot Dollar Rate

(JISDOR) on the date of violation.

Lampiran Attachments

Lampiran 1 Bank Indonesia Regulation Number 16/17/PBI/2014

Lampiran 2 FAQ - Bank Indonesia Regulation Number 16/17/PBI/2014

Lampiran 3

Lampiran 4

Lampiran 5

Lampiran 6

Lampiran 7

Lampiran 8

Lampiran 9

Lampiran 10

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

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