JAKARTA - Bank Indonesia will lower the threshold for purchasing foreign currencies without supporting documentation from US$25,000 to US$10,000 per person per month beginning July 1.
The move forms part of the central bank’s efforts to support rupiah stability and strengthen oversight of foreign exchange transactions, as reported by Jakarta Globe.
Governor Perry Warjiyo announced the measure on Thursday following a meeting of Bank Indonesia’s Board of Governors.
Under the revised regulations, individuals purchasing more than US$10,000 worth of foreign currency within a month will be required to provide documents explaining the purpose of the transaction.
Acceptable supporting documents may include those related to import financing, overseas travel, education expenses, investment activities or other legitimate transactions that can be verified.
Bank Indonesia has also tightened rules governing overseas foreign currency transfers.
The threshold for overseas transfers without supporting documentation will be reduced from US$50,000 to US$25,000.
Perry said the new transfer requirements would also come into effect on July 1.
The central bank said the measures are aimed at improving monitoring of foreign exchange flows while maintaining stability in the domestic financial system.
