Bank Indonesia's Explanation on Foreign Exchange Transaction Restrictions

The head of Bank Indonesia’s (BI) Communications Department, Ramdan Denny Prakoso, stated that the central bank will not impose a blanket limit on cash purchases of US dollars to a maximum of US$50,000 per person per month. He explained that the adjustment to the threshold is intended to require supporting documentation for foreign exchange transactions based on the underlying economic need for foreign currency.

“The adjustment to be implemented is that cash purchases above US$50,000 can still be conducted, but must include supporting documentation,” said Denny in a written statement on Tuesday, 17 March 2026.

Previously, the threshold was set at US$100,000. However, BI subsequently lowered this limit to support rupiah exchange rate stability.

Denny explained that the adjustment to the threshold and submission of supporting documentation represents BI’s effort to ensure that foreign exchange purchases are grounded in genuine economic needs. Historically, BI has adjusted the foreign exchange transaction threshold several times in line with developments in global and domestic economic conditions.

According to Denny, the policy was formulated by carefully monitoring exchange rate movements and patterns of foreign exchange transactions in the domestic market. The adjustment to the cash foreign exchange purchase threshold against the rupiah will take effect on 1 April 2026, with a transition period until 30 April 2026.

Previously, BI Governor Perry Warjiyo announced that the central bank would strengthen its policy on foreign exchange market transactions. “Through adjusting the threshold for cash US dollar purchases against the rupiah from US$100,000 per person per month to US$50,000 per person per month,” said Perry during a press conference on Tuesday, 17 March 2026.

BI also raised the threshold for selling Domestic Non-Deliverable Forward (DNDF)/Forward transactions from US$5 million per transaction to US$10 million per transaction. The thresholds for purchasing and selling swap transactions were increased from US$5 million to US$10 million per transaction. Additionally, BI strengthened the requirements for reporting capital flows through an adjustment to the threshold for supporting documentation for outgoing foreign exchange transfers from US$100,000 to US$50,000.

Previously, the rupiah exchange rate at the opening of trading in Jakarta on Tuesday morning, 17 March 2026, strengthened by 29 points or 0.17 per cent to Rp 16,968 per US dollar from the previous close of Rp 16,997 per US dollar.

Muhammad Amru Syifa from the Research and Development division of Indonesia Commodity & Derivatives Exchange (ICDX) stated that the rupiah was moving dynamically as market participants adopted a wait-and-see approach ahead of global monetary policy decisions. He projected that the rupiah would move within the range of Rp 16,900-Rp 17,020 per US dollar, with external factors being the primary driver of movement.