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18 November 2011
On September 30 2011 Bank Indonesia issued three regulations that reflect its foreign exchange policies. The regulations are the Regulation on Foreign Exchange Export Proceeds and Foreign Exchange Debt Drawdowns (13/20/PBI/2011); the Regulation on Monitoring of Banks' Foreign Exchange Activities (13/21/PBI/2011); and the Regulation on Foreign Exchange Debt Drawdown Reporting Obligation (13/22/PBI/2011). Regulation 13/21 and Regulation 13/22 are the implementing regulations for Regulation 13/20.
The regulations are Bank Indonesia's effort to make Indonesian exporters deposit their export revenues into banks in Indonesia, in light of the current financial instability.
Regulation 13/20 stipulates that all foreign exchange export proceeds must be received and deposited by the exporter in a foreign exchange bank. It defines 'foreign exchange bank' as a bank that is "licensed by Bank Indonesia to conduct banking activities in foreign currencies, including branches of foreign banks in Indonesia, but excluding foreign branches of banks [whose] headquarters are in Indonesia".
For monitoring purposes, Bank Indonesia also requires that exporters report their export activities to foreign exchange banks, which in turn are required to pass on the information to Bank Indonesia. Foreign exchange banks are also required to report their foreign exchange disbursements to Bank Indonesia. Regulation 13/21 became effective immediately, whereas Regulation 13/20 and Regulation 13/22 will become effective on January 2 2012.
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