External Debt Reporting Obligations

Bank Indonesia has issued Regulation No. 13/22/PBI/2011 of 2011 on Mandatory Reporting Obligations for Foreign Exchange Debt Withdrawals (“Regulation”) to maintain Rupiah stability and support the availability of foreign currency in the domestic market. The Regulation also ensures that Bank Indonesia’s foreign currency policy for external debt withdrawals runs smoothly, by requiring debtors to report withdrawals of foreign currency debt disbursements. These reports provide Bank Indonesia with a method of collecting necessary data to implement monetary policies that minimize exchange rate volatility caused by unstable foreign currency supply in the domestic market.

“External debt” also known as foreign debt or “ULN” is defined as debt denominated in a foreign currency that is owed by a resident to non-residents (Article 1(3)). “Residents” include persons, corporations, or other entities that have been or plan to be domiciled in Indonesia for at least one year, including the representatives and the diplomatic staff of the Republic of Indonesia located abroad, as stipulated in current legislation.