BI Adjusts Rupiah for International Activities

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Bank Indonesia (BI) adjusts rupiah transaction rules for international activities. The plan is that the regulation will take effect on April 27, 2022.

This right is stated in Bank Indonesia Regulation (PBI) Number 24/6/PBI/2022 concerning Policy on Using Rupiah in International Activities.

The Executive Director of the Head of the BI Communications Department Erwin Haryono explained that the policy provisions for the use of rupiah in international activities are intended to support national economic activities.

“The impact of the policy on the use of Rupiah in international activities is expected to be able to support the stability of the Rupiah exchange rate, encourage financial market deepening, and encourage improvements in the structure of the domestic economy,” Erwin explained in his official broadcast, quoted Wednesday (11/5/2022).

In detail, the substance of the regulation in this provision covers the main principles of using the rupiah in international activities.

Where the use of rupiah can only be done within the Territory of the Unitary State of the Republic of Indonesia (NKRI). As for the rupiah being used outside the territory of the Republic of Indonesia, its use may be limited as long as it has a positive impact and benefit on the Indonesian economy.

The scope of policy regulation on the use of the Rupiah in international activities covers aspects of regulating the use of the Rupiah in the context of jurisdictions and actors.

“The use of Rupiah by residents and non-residents outside the territory of the Republic of Indonesia and the use of Rupiah by non-residents within the territory of the Republic of Indonesia,” explained Erwin.

Policy regulation on the use of the Rupiah outside the territory of the Republic of Indonesia, including coverage based on its form (physical, digital accounts, and financial instruments) and its use (quotations, financial transactions, and settlement of financial transactions).

The affirmation of regulation on the use of the Rupiah by non-residents within the territory of the Republic of Indonesia needs to be supported by underlying economic activities.

Furthermore, this provision has become the basis for several monetary policy provisions related to the use of the rupiah outside the territory of the Republic of Indonesia and/or within the territory of the Republic of Indonesia which have been issued by Bank Indonesia since 2001.

The details are PBI 3/3/PBI 2001, PBI Number 4/8/PBI/2002, PBI Number 19/11/PBI/2017, and PBI Number 20/10/PBI/2018.