Rupiah requirement on transactions in Indonesia update
On 31 March 2015, the Indonesian central bank (Bank Indonesia) issued Bank Indonesia Regulation No. 17/3/PBI/2015 on the Obligation to Use Rupiah in the Territories of Indonesia (the Regulation), which further implements the provision restricting the use of foreign currency in transactions within Indonesian territories as set out in Article 21 of Law No. 7 of 2011 on Currency (the Currency Law). It additionally regulates non-cash transactions, which had not been expressly addressed in the Currency Law.
On 1 June 2015, Bank Indonesia issued Circular Letter of Bank Indonesia No.17/11/DKSP of 2015 on the Obligation to Use Rupiah in the Territories of Indonesia (the “BI Circular”) providing guidance as to the implementation of the Regulation.