Revised Bank Indonesia Circular Letter on Foreign Debt Reporting Obligations

With the release of Bank Indonesia Circular Letter No.12/19/DInt of 2010, the central bank revised the regulation on local creditor reporting of foreign debt control: it specifies the parties under the scope of regulation, types of debts that need be reported, and procedures for submitting the reports.

‘Creditors’ as defined by the Circular Letter include: bank and non-bank financial institutions, and non-financial institutions, including private, state- and regional-owned enterprises, cooperatives, foundations, individuals, and others.

As provided by Bank Indonesia Regulation No. 2/22/PBI/2000 (as amended by Bank Indonesia Regulation No. 11/17/PBI/2009), every debt that local creditors obtain from foreign debtors must be reported to Bank Indonesia. However, the Circular Letter specifies that the reporting obligation extends only to creditors of certain types and amounts of foreign debt.

The types of debt include loan agreements, debt securities, trade credit, and / or other types of loans, whether in rupiah or other currency. However, only debts of the following sizes need be reported to Bank Indonesia:

To report debt that meets those criteria, there are two forms that must be submitted to Bank Indonesia: (1) Report of Basic Data / Amendment to Data, and; (2) Report of Realization. Information that is required by both forms is elaborated in Chapter II (B) of the Circular Letter.

While details on offline and online submission are provided in Article 13 of the Circular Letter, the related timeframes are set out in Chapter III. 

Failures to comply with the reporting obligations will be met with administrative fines. Timeframe violation is associated with a fine of up to IDR 100,000 per day. Failure to deliver the report at all is associated with a fine of 1% of every foreign debt held by a creditor. Failure to provide complete, or accurate reports is associated with a fine of up to IDR 1 million.

The Circular Letter repeals and replaces Bank Indonesia Circular Letter No. 6/51/DLN of 2004 (as amended by Circular Letter No. 7/22/DLN of 2005), and has been in force since 22 July 2010.