Banknotes carrying rule not to control foreign exchange: BI

BI monitors carrying foreign banknotes to make rupiah more stable.

REPUBLIKA.CO.ID, PADANG -- Bank Indonesia (BI) conveyed the rules concerning bringing foreign exchange into and out of the country as stipulated in the BI Regulation number 20/2/PBI/2018 as not an attempt to control foreign exchange. This regulation has been effective since June 4, 2018, and the imposition of sanctions was effective starting Sept 3, 2018.

"The purpose of the regulation was to monitor the carrying of foreign banknotes for companies, banks, and money changers to make the rupiah more stable," BI Foreign Exchange Management Department Executive Director Hariyadi Ramelan explained on Monday.

He stated this at the dissemination of the rule on the Provision of Foreign Banknotes into and out of the Indonesian Customs Area held by the West Sumatra BI representative. According to him, referring to BI Regulation No. 20/2/PBI/2018 concerning Foreign Banknotes Carrying Out into and out of the Indonesian customs area, foreign banknotes must be carried from abroad and vice versa through banks or authorized foreign exchange businesses.

"Therefore, BI tightens the rules to bring foreign banknotes into and out of the country by imposing policies stating that every person is prohibited from carrying foreign banknotes with a nominal value of Rp1 billion and above," he noted.

According to him, foreign banknotes exceeding Rp1 billion could previously be carried by individuals or corporations, but now, it can only be done through a licensed entity, a bank that has a license as a foreign exchange bank and currency exchange business activities, as well as foreign exchange business that has fulfilled the requirements, he further stressed.

He remarked that parties who do not have permits to bring foreign currency to Indonesia in excess of Rp1 billion, will be subject to sanctions in the form of a fine of 10 percent of the total foreign currency carried, with maximum fine of Rp300 million. Not only that, the licensed entity that carries foreign banknotes exceeding the amount approved by BI will also be fined 10 percent of the difference in money brought from the approved.

For payment of fines, he state that they were paid in rupiah and could be deducted directly from the money brought to be deposited by Customs and Excise officials on other customs receipt accounts.

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https://en.republika.co.id/berita/en/national-politics/18/09/18/pf92mi414-banknotes-carrying-rule-not-to-control-foreign-exchange-bi