ANNOUNCEMENT 16 Sep 2015

In September 2015, the government of Indonesia announced a rule change for commercial cross-border financial flows.

NUMBER OF INTERVENTIONS

2

  • 0 harmful
  • 0 neutral
  • 2 liberalising
Inception date: 16 Sep 2015 | Removal date: open ended
Still in force

Controls on commercial transactions and investment instruments

 On 16 September 2015, in line with the reform package announced by the Indonesian president a week earlier, the Indonesian Financial Services Authority (henceforth: OJK) announced changes to the conditions under which foreigners may open foreign currency accounts in the country. However, the changed conditions shall apply only to accounts with 2'000 to 50'000 USD.
Previously, foreign individuals required a reference from a bank in the country of origin, a copy of their Temporary Residence Permit card, identification papers of their spouse and a number of other documents. Now, they will only be required to provide their passport. For accounts with more than 50'000 USD, the foreigner will now have to provide at least one (previously, all) additional document of those mentioned above.
 
Tax cuts to encourage inflow of foreign currency
Furthermore, the press release by the OJK also stated that foreigners with foreign currency accounts of more than 1 million USD will be eligible to a lowered tax rate, which shall be applied "progessive'ly'" (wording of OJK's press statement - probably a misspelling and meant regressively) - the higher the amount of stored money, the lower the tax rate.
The new rules came into force on 16 September 2015.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 16 Sep 2015 | Removal date: open ended
Still in force

Controls on commercial transactions and investment instruments

 On 16 September 2015, in line with the reform package announced by the Indonesian president a week earlier, the Indonesian Financial Services Authority (henceforth: OJK) announced changes to the conditions under which foreigners may open foreign currency accounts in the country. However, the changed conditions shall apply only to accounts with 2'000 to 50'000 USD.
Previously, foreign individuals required a reference from a bank in the country of origin, a copy of their Temporary Residence Permit card, identification papers of their spouse and a number of other documents. Now, they will only be required to provide their passport. For accounts with more than 50'000 USD, the foreigner will now have to provide at least one (previously, all) additional document of those mentioned above.
 
Tax cuts to encourage inflow of foreign currency
Furthermore, the press release by the OJK also stated that foreigners with foreign currency accounts of more than 1 million USD will be eligible to a lowered tax rate, which shall be applied "progessive'ly'" (wording of OJK's press statement - probably a misspelling and meant regressively) - the higher the amount of stored money, the lower the tax rate.
The new rules came into force on 16 September 2015.

 
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