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20 March 2009
In keeping with its statutory duty to stabilize Indonesia's currency, the Bank of Indonesia has taken measures to control speculative rupiah transactions. On November 12 2008 it issued the Regulation on the Purchase of Foreign Currencies in Banks against the Rupiah (10/28/PBI/2008). The regulation came into force the following day.
In essence, the regulation provides that purchases of foreign currency from a bank may not exceed $100,000 a month unless the purchase can be justified economically. Therefore, an individual, legal entity or foreign party wishing to purchase foreign currency in excess of the threshold amount must present the bank with evidence of an underlying transaction that necessitates the purchase of the foreign currency. The requirement applies equally to Indonesian and foreign parties and places the onus of ensuring compliance on the banks.
For further information on this topic please contact Emir Nurmansyah at Ali Budiardjo, Nugroho, Reksodiputro by telephone (+62 21 250 5125) or by fax (+62 21 250 5121) or by email (firstname.lastname@example.org).
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