Indonesia maintains a managed-float exchange rate regime for the Indonesian rupiah (IDR). Bank Indonesia (BI), the central bank, governs the foreign exchange system. It focuses on regulations for decreasing speculative capital flows that impact IDR volatility.

Import and Export of Currencies

Domestic Currency -- BI approval is required and a custom declaration must be submitted for importing or exporting local currency notes and coins above IDR100 million.

Foreign Currency -- In general, there are no restrictions on the amount of foreign currency that can be brought into or taken out of Indonesia either by residents or nonresidents.

Foreign/Domestic Currency Accounts

Resident Accounts -- Residents may hold foreign currency accounts abroad without restriction. Checking services are unavailable on foreign currency accounts held domestically by residents.

Nonresident Accounts -- There are no restrictions on nonresidents maintaining domestic currency accounts locally. However, nonresidents are only allowed to maintain foreign currency checking and time deposit accounts in Indonesia; funds are not allowed to drawn on checks.

Lending/Borrowing

Domestic Borrowing -- There are no regulations on domestic borrowing by nonresidents, either in IDR or in foreign currencies.

Offshore Borrowing -- Residents may borrow abroad subject to the following restrictions:

• residents should submit periodic reports to BI on their borrowings; and

• borrowings from state companies and foreign investment companies should obtain BI approval, while all other foreign borrowings are only required to be reported to BI and Minister of Finance.

The links below provide details on restrictions and reporting requirements.