JAKARTA May 15 Indonesia next year will impose
a ceiling on how much foreign cash an individual can bring into
the country, a central bank official said on Monday.
Under a Bank Indonesia (BI) regulation dated May 5 and
effective from March 5, 2018, no one except banks and licensed
money changers will be allowed to bring in banknotes equivalent
to 1 billion rupiah ($75,130).
At present, there is no cap on foreign banknotes carried in,
though people bringing in the equivalent of more than 100
million rupiah have to declare the amount.
Budianto, BI's executive director of foreign exchange
management, said that after the rule takes effect, anyone who
brings in more than the allowed amount with a license will have
the notes confiscated by the customs office.
Until the regulation was prepared, Indonesia had "no
controlling instrument" on the flow of foreign banknotes.
"The problem is when demand for foreign banknotes increases,
it could create pressure on the rupiah. And it has psychological
effect too," Budianto told a briefing on the new regulation.
He also said the measure should strengthen BI's efforts to
ban the use of foreign currency in domestic transactions.
The rupiah, which in the past has weakened
significantly, has gained more than 1 percent against the dollar
so far this year.
($1 = 13,310 rupiah)
(Reporting by Hidayat Setiaji; Writing by Gayatri Suroyo;
Editing by Richard Borsuk)