IFCCI organized a Forum Group Discussion New Currency Regulation : Mandatory Use of Rupiah – The Implementation and Impact for Business Sectors in Indonesia on Thursday, May 21st, 2015 at Financial Club Jakarta – CIMB Niaga Building.
Rupiah is required as a legal payment instrument in economic activities nationwide. Bank Indonesia has issued regulation number 17/3/PBI/2015 concerning the Mandatory Use of Rupiah in the Territory of Indonesia (BI Regulation), on March 31st, 2015. Formerly, this act refers to the Law of Republic Indonesia Number 7 Year 2011 concerning Currency. Any individual or corporation is obliged to use IDR in any transaction made within the territory of the Republic of Indonesia. Mandatory use of Rupiah for non-cash transaction will become enforceable as of July 1st, 2015. As the time period comes closer and the use of the rupiah is still being socialized, there are a number of matters that are up for debate from many companies. The new Currency Regulation provides a transitional provision which states that written agreements for non-cash transactions using foreign currency that were made before July 1st, 2015 will remain effective until they expire.
Certain transactions related to the state budget; the acceptance of grants made to or from abroad; international trading transactions; bank savings in foreign currencies; and international financing transactions are the exemptions to the mandatory use of rupiah.
The main objective of this new regulation is to improve the investment climate development as well as to achieve and maintain the stability of the rupiah.
We would like to thank Mr. Lambok Antonius Siahaan, the Expert Staff Board of Governor of Bank Indonesia; Mrs. Farah Ratnadewi Indriani, Deputy Chairman for Investment Climate and Development of the Indonesia Investment Coordinating Board (BKPM); and Mr. Gregory K. Ranslam, Advisor of AKSET Law for their valuable support as speakers and Mr. Ricard L. Weiss from Mochtar Karuwin Komar (MKK) Law Firm as the moderator in this forum group discussion.
We also would like to applaud the compelling presentations of the speakers for providing concrete details regarding the issues. We truly look forward to having another insightful forum group discussion, business luncheon, and seminar in the near future.