BI raises amount of cash allowed abroad to Rp 5m

JAKARTA (JP): Bank Indonesia, the central bank, has raised the ceiling for the amount of rupiah allowed to be physically carried out of or into the country to Rp 5 million (US$555) per person from Rp 50,000.

Bank Indonesia said in a statement yesterday that the new policy was aimed at stabilizing the rupiah's exchange rate and preventing forgery of rupiah notes or coins abroad.

According to Bank Indonesia (BI) ruling No. 30/191A/KEP/DIR, dated March 6, a person taking more than Rp 5 million across the country's borders has to declare it to customs officials.

And anyone wanting to take more than Rp 10 million out of the country has to get approval from the central bank.

Fines for violating these regulations are up to Rp 1 billion.

Yesterday, BI Governor Sjahril Sabirin and Director General of Customs and Excise Soehardjo Soebardi signed a joint decree on the enforcement of the new ruling.

Under the decree, people heading abroad and incoming travelers are required to fill in a self-assessment declaration form.

Customs officials can inspect anyone they suspect of carrying more than the allowed amounts.

They will impose a 50 percent fine on people convicted of carrying more than Rp 5 million but less than Rp 7 million without declaring it.

The fine for passengers carrying between Rp 7 million and Rp 9 million is 70 percent of the total. A 100 percent fine will be imposed on passengers caught with between Rp 9 million and Rp 10 million.

People taking more than Rp 10 million out of the country without declarating it and an approval letter from Bank Indonesia could be fined as much as the amount of the money carried or up to Rp 1 billion if the sum exceeds Rp 1 billion.

The central bank's new ruling is an elaboration of Government Regulation No. 18/1998, which modifies Law No. 32/1964.

The 1964 law prohibits a person from physically transporting Rp 50,000 in cash out of the country.

The issue of this limitation arose in February after customs officers suddenly began to enforce the antiquated law and confiscate money from travelers leaving the country.

Customs officials, based on a radiogram from the customs director general dated Jan. 16, surprised people heading abroad by stopping and searching them. When the officials found more than Rp 50,000, they seized the excess.

Bank Indonesia said all money confiscated by the customs office before the issuance of BI's new ruling would be processed under the 1964 law. Money confiscated after the new ruling became effective will be treated under it. (rid)