IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jul 2015 | Removal date: open ended
Still in force

Control on personal transactions

On 31 March 2015, the Indonesian Central Bank announced regulation 17/3/PBI/2015 banning the use of foreign currency in domestic transactions. The bank hopes this will increase the use of the Indonesian rupiah by 6 billion USD per month. Having struggled to defend the rupiah's exchange rate to the dollar, the Indonesian currency has been the worst performing currency in recent years in South-East Asia.
 
The ban shall not hold for the following exceptions listed in article 4 of the regulation:

  • "a. certain transactions within the framework of the implementation of budget revenues and expenditures;
  • b. accepting or awarding grant abroad;
  • c. international trade transactions;
  • d. bank deposits in foreign currencies; or
  • e. international financing transactions." (own translation)

 
Back in 2011, the central bank had already announced a ban of foreign currency in local cash transactions (cf. Related Measures).
 
The regulation came into force on the day of its issuance, but the ban shall be effective starting 1 July 2015.

AFFECTED COUNTRIES

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