Bank Indonesia Issues Regulation on Carrying Foreign Banknotes of at Least IDR1 Bln

This regulation arranges that foreign banknote carriages within and outside the country of at least equivalent to IDR1 billion is only permitted by licensed entities, including banks and non-bank Foreign Exchange Business Activities that have obtained permits and approval from BI to carry foreign banknotes.

In addition, a qualified Rupiah Money Processing Service Company (PJPUR) listed in BI may carry foreign banknotes across borders, but only as transporter.

“The release of this regulation is in line with BI’s efforts to achieve and maintain the stability of the rupiah,” said Executive Director of BI’s Department of Foreign Exchange Management, Budianto at Thamrin Building, BI, Central Jakarta, Monday.

The BI regulation is effective on March 5, 2018, but the imposition of new violation sanctions will be applied on May 7, 2018 or two months after the enactment of the PBI.

The grace period for enforcement of the regulation to strengthen socialization aspects to the community before it is implemented.

“This BI regulation is valid since March 5, 2018, the imposition of new sanctions will be effective on May 7, 2018. There is still a transition period of 10 months ahead,” said Budianto.

This provision also relates to Law Number 8 Year 2010 concerning the Prevention and Eradication of Money Laundering Crime and Government Regulation No. 99 of 2016 concerning Cash Advance issued by the Financial Transaction Reporting and Analysis Center (PPATK). With the issuance of the new regulation, it will also strengthen the foreign banknotes cross country.

As for sanctions provided if a party violates, ie prevention of the total number of foreign notes brought.