Board of Governors Member Regulation Number 10 of 2026 Expands Rupiah–Yen Transactions and Regulates New Balance Limits

Introduction

On 12 May 2026, Bank Indonesia issued Board of Governors Member Regulation Number 10 of 2026 on the Settlement of Bilateral Transactions between Indonesia and Japan Using Rupiah and Yen through Banks (“PADG 10/2026”), which will take effect on 25 May 2026. Bank Indonesia enacted this regulation as an operational guideline for external parties, while also ensuring that the formulation of bilateral transaction settlements using local currencies is carried out in accordance with the central bank’s authority to facilitate trade and investment transactions.

PADG 10/2026 responds to developments in cooperation with the Japanese authorities in promoting local currency-based bilateral transactions in order to maintain and preserve the stability of the rupiah exchange rate. Bank Indonesia considers that businesses and banks require operational adjustments, including an increase in the daily balance limit of the Rupiah Special Purpose Non-Resident Account (“SNA”) and the expansion of the scope of activities recognized as Underlying Transactions.

 

Comparison

PADG 10/2026 revokes and replaces Board of Governors Member Regulation Number 22/20/PADG/2020 on the Settlement of Bilateral Transactions between Indonesia and Japan Using Rupiah and Yen through Banks (“PADG 22/2020”) and its amendments (PADG 23/2021 & PADG 14/2024). The following table compares PADG 10/2026 with PADG 22/2020 and its amendments:

 

Key Provisions

Appointment and Evaluation of Indonesian ACCD Banks

According to Article 8, Bank Indonesia appoints Banks as Indonesian ACCD Banks by considering criteria in the form of size, interconnectedness, complexity, and the role of such banks in supporting money market development, as well as recommendations provided by the Japanese authorities. Articles 10 and 11 stipulate that Bank Indonesia conducts periodic evaluations and has the authority to terminate the appointment status of Indonesian ACCD Banks if the relevant bank has its business license revoked, no longer becomes a surviving banking entity due to corporate actions, or submits a termination request on its own initiative.

Balance Limits and Account Management

Article 16 stipulates that Indonesian ACCD Banks monitor and ensure that the total daily balance of Rupiah SNAs owned by Japanese ACCD Banks does not exceed the limit of IDR1,250,000,000,000.00 (one trillion two hundred fifty billion rupiah) at the close of business. An exemption to this balance limit applies if the Japanese ACCD Bank can demonstrate that the excess funds are specifically allocated to fulfill obligations arising from Underlying Transactions on the following Day (business day). For the purpose of fund management, Articles 20 and 21 prohibit customers from using balances retained in Yen Sub-SNAs and Rupiah Sub-SNAs for investment in deposit instruments, savings products, certificates of deposit, or similar banking products within the jurisdictions of Japan or Indonesia.

Yen-to-Rupiah Transactions and Documentary Requirements

According to Article 31, Indonesian ACCD Banks facilitate yen-to-rupiah currency conversion transactions, including spot, forward, swap, cross-currency swap, and domestic non-deliverable forward transactions. Article 33 requires Indonesian ACCD Banks to request documentary evidence of Underlying Transactions from customers for yen purchase transactions against rupiah (except swap transactions involving the purchase of yen against rupiah) exceeding the equivalent of USD500,000.00.

Meanwhile, for yen sales transactions against rupiah, the threshold for such documentary requirements follows Bank Indonesia’s general provisions on foreign exchange market transactions. Based on Article 39, such supporting documents serve as evidence of legitimate economic activities, including:

1. Current account transactions. 
2. Capital account transactions. 
3. Financial account transactions. 
4. Financing provided by Indonesian ACCD Banks to Indonesian Customers. 

Financing Facilities

Article 27 stipulates that Indonesian ACCD Banks may provide yen-denominated financing to Indonesian Customers to accommodate trade financing and direct investment financing needs. Indonesian ACCD Banks fulfill the availability of such loan funds through the use of internal funds, yen-to-rupiah currency swap transactions, or direct borrowing. Article 29 limits the term of such direct borrowing so that its implementation does not exceed a period of 1 (one) year and prohibits financing that exceeds the nominal amount of the Underlying Transaction.

Sanctions

Article 54 stipulates administrative sanctions in the form of written reprimands for Indonesian ACCD Banks proven to have violated the procedures and implementation guidelines of this regulation.

 

Transitional Provisions

According to Article 56, as of 25 May 2026, all Rupiah–Yen Bilateral Transaction activities that had previously been initiated and remain in the settlement process shall continue to be recognized. The settlement of such transitional transactions remains fully subject to PADG 22/2020 and its amendments until all stages of the relevant transactions are completed.

 

Closing

PADG 10/2026 accommodates essential adjustments for banks and businesses, including the increase of the daily Rupiah SNA account balance limit to a maximum of IDR1,250,000,000,000.00, the obligation to submit Underlying Transaction documents for transactions exceeding the equivalent of USD500,000.00, and the authorization to provide yen-denominated financing for trade and direct investment purposes. To ensure compliance and legal certainty, Bank Indonesia also prohibits the investment of retained balances, imposes written reprimand sanctions on violators, and ensures that all transactions initiated before the regulation comes into force will continue to be processed under PADG 22/2020 and its amendments until completion.