Bank Indonesia to Allow Banks to Sell NDFs in Overseas Markets

Bank Indonesia (BI) will exempt the prohibition on selling Non-Deliverable Forward (NDF) foreign exchange transactions against the rupiah in overseas markets. This exemption applies to banks that are primary dealers in the money market and foreign exchange market (PUVA).

Senior Deputy Governor of BI Destry Damayanti stated that this exemption aims to strengthen monetary operations through offshore NDF interventions. “We want this as one way to maintain rupiah stability in the NDF market,” she said during the online press conference following the BI Board of Governors Meeting on Wednesday, 22 April 2026.

Deputy Governor of BI Thomas Djiwandono added that the exemption facility will be granted after banks apply to Bank Indonesia. In addition, there are several requirements that must be met.

The first requirement is not to conduct NDF sales of foreign exchange against the rupiah with foreign affiliates. The second requirement is to use NDF transactions only when intending to cover NDF sales of foreign exchange against the rupiah.

“The third is to have a credit support annex agreement or a supporting agreement for implementing the margin line with at least six domestic banks or to be a member of the central counterparty,” said Thomas.

The final requirement is to submit reports to BI in the prescribed format. Fulfilment of these four requirements must be met for three months and will be reviewed by BI.