Drastic Reduction of the Cash Foreign Exchange Purchase Threshold under Board of Governors Member Regulation Number 11 of 2026

Introduction

On 26 May 2026, Bank Indonesia issued Board of Governors Member Regulation Number 11 of 2026 on the Second Amendment to Board of Governors Member Regulation Number 11 of 2024 on Foreign Exchange Market Transactions (“PADG 11/2026”), which will take effect on 2 June 2026. This regulation aims to adjust certain transaction thresholds in foreign exchange market transactions relating to the submission requirements for Underlying Transaction documents.

PADG 11/2026 responds to changes in both the global and domestic strategic environment that continue to exert pressure on the Rupiah exchange rate. Amid persistent uncertainty in the global financial market and increasing domestic demand for foreign exchange in line with growing economic activities, this regulation is intended to strengthen the national currency exchange rate. Accordingly, Bank Indonesia has readjusted its policy instruments by tightening the cash transaction threshold for foreign exchange purchases against Rupiah.

 

Comparison

PADG 11/2026 revises the threshold for the obligation to submit supporting documents for cash foreign exchange purchase transactions, which was previously governed under Board of Governors Member Regulation Number 11 of 2024 on Foreign Exchange Market Transactions, as most recently amended by Board of Governors Member Regulation Number 7 of 2026 (“PADG 7/2026”).

 

Key Provisions

Adjustment of the Threshold for Cash Foreign Exchange Purchase Transactions

Bank Indonesia has reduced the threshold for the obligation to submit Underlying Transaction documents for parties conducting cash foreign exchange purchases against Rupiah. Pursuant to Article 25 paragraph (1) of PADG 11/2026, each Foreign Exchange Market transaction participant is now required to submit Underlying Transaction documents if the cash purchase exceeds USD25,000.00 (twenty-five thousand United States dollars) or its equivalent per month per party. This adjustment reduces the document-free purchase threshold from the previous limit of USD50,000.00 (fifty thousand United States dollars) per month per party.

Status of Derivative Transaction Thresholds

Article 25 paragraph (2) of PADG 11/2026 stipulates that derivative transactions in the form of forward and domestic non-deliverable forward remain subject to a threshold of USD100,000.00 (one hundred thousand United States dollars) per month for purchase transactions, and USD10,000,000.00 (ten million United States dollars) per transaction for sale transactions. Furthermore, Article 25 paragraph (3) provides that the threshold for derivative transactions in the form of swaps remains at USD10,000,000.00 (ten million United States dollars) per transaction. Lastly, Article 25 paragraph (4) stipulates that derivative transactions other than those previously mentioned remain subject to a threshold of USD100,000.00 per month for purchases and USD1,000,000.00 per transaction for sales.

 

Transitional Provisions

Article II number 1 letter a of PADG 11/2026 provides relaxation measures for Foreign Exchange Market transaction participants conducting cash foreign exchange purchase transactions against Rupiah exceeding USD25,000.00 up to USD50,000.00 (or its equivalent per month per party), where the transactions are executed between 2 June 2026 and 30 June 2026. Such transaction participants are granted flexibility to submit the Underlying Transaction documents and/or supporting documents no later than 31 July 2026.

Furthermore, Article II number 1 letter b stipulates that Banks are required to submit corrections to periodic reports for cash foreign exchange purchase transactions exceeding USD25,000.00 up to USD50,000.00 occurring during the period from 2 June 2026 to 30 June 2026. Banks must make such corrections in accordance with the provisions governing integrated commercial bank reporting, with a completion deadline of 31 July 2026.

 

Closing

PADG 11/2026 responds to pressure on the Rupiah exchange rate amid high domestic demand for foreign exchange and uncertainty in the global market. PADG 11/2026 tightens the threshold for cash foreign exchange purchases without underlying documents, reducing it from USD50,000.00 to USD25,000.00 per month per party. Nevertheless, the thresholds for all derivative transactions remain unchanged. To facilitate a smooth adjustment period, Bank Indonesia also provides relaxation measures for cash foreign exchange purchase transactions exceeding USD25,000.00 up to USD50,000.00 during the period from 2 June 2026 to 30 June 2026, whereby market participants and banks are granted until 31 July 2026 to complete the submission of supporting documents and the correction of periodic reports.