Requirements for Indonesians Buying US Dollars Above US$10,000: BI's Explanation

Bank Indonesia (BI) has reaffirmed its commitment to maintaining rupiah exchange rate stability amid global market uncertainty. The central bank has confirmed that the public and businesses are still permitted to purchase foreign currency, particularly US dollars, in amounts exceeding US$10,000 per month. However, the monetary authority is imposing strict administrative requirements that must be met. Senior Deputy Governor of Bank Indonesia, Destry Damayanti, stated that BI is not restricting the public from transacting in US dollars. To ensure rupiah stability, however, a requirement is in place: buyers must possess supporting documents that underpin the need for foreign currency for transactions in US dollars. Transactions above US$10,000 are allowed, but they must be supported by clear underlying documents. The policy is not a ban on exchanging rupiah for dollars, but rather an effort to regulate and reorganise the governance of such transactions. For customers wishing to purchase foreign currency above the threshold, Bank Indonesia requires valid and genuine underlying documents. These documents serve as proof that the purchase is intended for productive economic activities or the fulfilment of obligations, rather than for speculative purposes or short-term investment seeking profit from exchange rate fluctuations. Examples of legitimate activities with strong underlying documentation include import activities, evidenced by an Import Declaration document or an invoice from an overseas trading partner; payments for overseas services such as tuition fees, medical expenses, or international royalty and licence payments; and repayment of foreign debt, supported by loan withdrawal documents or a registered foreign debt repayment schedule. For total purchases equivalent to US$10,000 or less per month, individuals only need to sign a statement form provided by the bank or money changer, without attaching underlying documents. Destry gave the example of someone pursuing education abroad who needs more than US$10,000. The transaction is permitted as long as they have clear documentation, such as an acceptance letter stating the required costs. The policy adjustment to the threshold for cash foreign exchange purchases against the rupiah will take effect on 1 July 2026. The regulation was formulated by observing exchange rate movements and domestic foreign exchange transaction patterns to maintain rupiah stability and ensure the domestic foreign exchange market operates in a healthy and efficient manner. This marks the third time in a year that BI has lowered the underlying document threshold for US dollar purchases. In March, the threshold was reduced from US$100,000 to US$50,000, and in June, it was further lowered from US$25,000 to US$15,000.