Backgrounds

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Bank Indonesia has introduced a series of amendments to the transaction thresholds applicable to foreign exchange transactions against Rupiah that must be supported by an underlying transaction. The amendments were introduced through Board of Governors Regulation No. 7 of 2026 on the Amendment to Board of Governors Regulation No. 11 of 2024 on Foreign Exchange Transactions (“PADG 7/2026”), Board of Governors Regulation No. 11 of 2026 on the Second Amendment to Board of Governors Regulation No. 11 of 2024 on Foreign Exchange Transactions (“PADG 11/2026”), and most recently, within a month after PADG 11/2026 was issued, Board of Governors Regulation No. 15 of 2026 on the Third Amendment to Board of Governors Regulation No. 11 of 2024 on Foreign Exchange Transactions (“PADG 15/2026”).

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PADG 15/2026 was issued on 29 June 2026 and took effect on 1 July 2026. The regulation was issued amid significant pressure on the Rupiah exchange rate and forms part of Bank Indonesia’s efforts to strengthen Rupiah exchange rate stability, maintain domestic foreign exchange liquidity, and enhance transparency and oversight in the foreign exchange market. The revised threshold provisions are expected to affect business actors that frequently conduct foreign currency transactions, particularly those in import-export, manufacturing, energy, commodities, shipping, and other internationally exposed sectors.

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Key Points

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This legal alert highlights the following key points:

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1. the reduction of the threshold for cash purchases of foreign currency (“Spot Foreign Exchange Transactions”) against Rupiah from USD100,000 to USD10,000 or its equivalent per month for each market participant;​

2. the increase in the threshold for certain foreign exchange derivative transactions against Rupiah from USD5,000,000 to USD10,000,000 or its equivalent per transaction;

3. the requirement for foreign exchange transactions against Rupiah exceeding the applicable threshold to be supported by an underlying transaction; and

4. the strengthening of oversight and transparency over foreign exchange transactions in the domestic foreign exchange market.

Article

Spot Foreign Exchange Transactions - Under Board of Governors Regulation No. 11 of 2024 on Foreign Exchange Transactions, the threshold for Spot Foreign Exchange Transactions was initially set at USD100,000 or its equivalent per month for each foreign exchange market participant. The threshold was subsequently reduced in stages to USD50,000 under PADG 7/2026, then further reduced to USD25,000 under PADG 11/2026, and most recently to USD10,000 under PADG 15/2026.

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Foreign Exchange Derivative Transactions - In addition to the reduction of the threshold for Spot Foreign Exchange Transactions, PADG 7/2026 also increased the threshold for certain foreign exchange derivative transactions against Rupiah. The threshold for foreign exchange derivative selling transactions in the form of forward and domestic non-deliverable forward transactions increased from USD5,000,000 to USD10,000,000 or its equivalent per transaction. The same increase also applied to swap transactions, with the threshold raised from USD5,000,000 to USD10,000,000 or its equivalent per transaction.