In June 2021, Bank Indonesia issued new regulations* introducing a new system to monitor foreign exchange transactions against the rupiah (the Sismontavar System).

This Sismontavar System monitors, in real time, transactions between banks as well as between banks and their customers. Bank Indonesia will have direct access to the Sismontavar System to monitor all foreign exchange transactions made by banks and can, if necessary, directly examine particular transactions.

The new regulations require all banks to connect to the Sismontavar System for all their foreign exchange transactions. The new regulations set out obligations for banks in relation to their customers, which include using the Sismontavar System for all foreign exchange transactions and limiting:

• cash transactions to the equivalent of US$250,000; and
• derivative transactions to the equivalent of US$ 1 million.

The new regulations set out the date for when these obligations come into effect, which vary depending on the obligation. Failure to comply with the new regulations may lead to administrative sanctions, including written warnings.

* Regulation of Bank Indonesia No. 23/5/PBI/2021 of 2021 on The Monitoring System for Transactions in Foreign Exchange Against The Rupiah