On July 31, 2023, the Member of Board of Governors of Bank Indonesia ("BI") issued a second amendment to the Member of Board of Governors Regulation No. 21/28/PADG/2019 on Monitoring of Foreign Exchange Traffic Activities (Lalu Lintas Devisa) by Banks and Customers through Member of Board of Governors Regulation No. 5 of 2023 ("Regulation 5/2023"). This regulation has been in force since August 1, 2023. Regulation 5/2023 amends several provisions of the earlier regulation in order to improve the effectiveness of foreign exchange traffic activities implementation, specifically in connection with the Export Proceeds (Devisa Hasil Ekspor/"DHE") and Import Payments (Devisa Pembayaran Impor/"DPI").
Regulation 5/2023 amends eight articles, elucidation of the articles, and Appendix II of the regulation concerning technical guidelines on foreign exchange flow activities by banks. We set out below the key provisions of Regulation 5/2023.
♦ Banks No Longer Required to Submit Export Transaction Details Reports, Supporting Document Submission List Reports, and Export Proceeds Supporting Documents to BI
As regulated in the previous regulation, banks were required to submit a foreign exchange flow report to BI which included a transaction report (laporan transaksi), a position report (laporan posisi), and a supporting report (laporan pendukung). However, specifically for supporting reports, Regulation 5/2023 removes the inclusion of export transaction details (rincian transaksi ekspor/RTE) report and Supporting Document Submission List (Daftar Penyampaian Dokumen Pendukung/DPDP) report. Further, Special Account for Export Proceeds of Natural Resources (Rekening Khusus Devisa Hasil Ekspor Sumber Daya Alam or the "Reksus DHE SDA") position reports now shall include position changes (posisi perubahan) in addition to the original position and the final position of the Reksus DHE SDA and/or instruments for placement of the DHE funds.
Further, based on Regulation 5/2023, now banks are also no longer required to submit DHE supporting documents received from customers to BI.
♦ BI No Longer Required to Submit Supervision Reports on DHE SDA to Relevant Institutions
In relation to the above, Regulation 5/2023 revokes the reporting obligation by BI on supervision of customers who are exporters of SDA to the Minister of Finance, the Directorate General of Customs and Excise, and other relevant institutions as required under the previous regulation.
♦ Exemption of Reporting Obligation by Banks and Customers for Transactions Up to USD10,000 Includes Export-related Transactions
Under the previous regulation, there was a reporting obligation that had to be met by banks and customers for transactions up to USD 10,000 or its equivalent in any other currency. Such transactions had to be reported collectively and grouped based on certain information unless governed otherwise. Regulation 5/2023 further delineates such exemption to export-related transactions or other specifically specified transactions.
Pursuant to Appendix II of Regulation 5/2023, 11 SDA-related export activities (such as export of goods, operational leasing, financial leasing, etc.) shall not be reported collectively and shall be reported separately per transaction.
♦ Changes of Reporting Format to be Set Out under BI Reporting System and Changes in BI Correspondence Provision
Regulation 5/2023 stipulates that any change in the scope of the reports, report formats, and/or submission procedures shall be set out under BI's reporting system. Moreover, Regulation 5/2023 sets out several changes in the correspondence provision between banks and BI, such as addresses and telephone numbers of BI.
♦ Amendment in Appendix II concerning Certain Conditions on Export-related Activities
Pursuant to Appendix II of Regulation 5/2023, 11 SDA-related export activities are subject to certain conditions, namely:
- for transactions above USD 10,000: must provide additional reporting information; and
- for transactions up to USD 10,000: must be reported separately.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
