Bank Indonesia Lowers Foreign Exchange Purchase Threshold Again to Curb Speculative Transactions
MAKASSAR, KOMPAS.com - Bank Indonesia (BI) has reaffirmed that its plan to cut the threshold for foreign exchange purchases without underlying documents is intended to curb speculative transactions in the spot market, rather than restricting FX purchases.
From June 2026 BI will reduce the threshold for foreign exchange purchases without underlying documents from US$50,000 to US$25,000 per person per month.
The reduction comes after BI cut the threshold from US$100,000 to US$50,000 on 1 April 2026.
“Please, go ahead, buy as much as you like. Once again, we are not restricting FX purchases. Whether in US dollars or non-US-dollar with the economy in mind, but please purchases must be supported by underlying documentation. So it is not speculative. This is an important message we need to emphasise why we are lowering it again,” he said at a media briefing in Makassar, Friday (22/5/2026).
He added that through this policy, the central bank wants to ensure that dollar purchases are really based on economic needs, not merely taking advantage of market volatility to seek short‑term profits.
Because currency speculation amid a volatile global money market can put pressure on the rupiah to weaken.
“If you want, go ahead if mothers with children abroad genuinely need FX. Businesses that require FX for the economy, go ahead,” he said.
Ruth disclosed that the majority of FX transactions in Indonesia actually already have underlying. BI notes more than 90 percent of domestic FX transactions are accompanied by supporting documents of economic needs.
Therefore the threshold reduction is aimed at constraining the space for speculative transactions that are deemed to rise when markets are volatile.
“Usually people tend to exaggerate when conditions like this occur; this is what we are limiting,” he said.
He noted that the policy to reduce the FX purchase threshold on 1 April had effectively suppressed transactions of dollar purchases without underlying.
It was recorded that FX transactions fell from around US$78 million per day in Q1 2026 to US$62 million per day in April–May 2026.
Therefore BI plans to further trim the threshold to US$25,000 starting June 2026.
“So we are trying to lower again to US$25,000 with the hope that the trend will be similar, reducing the need to purchase US dollars without underlying. Currently, in April–May it was around US$57 million on average per day; we hope this will fall further,” he said.