Foreign Currency Use in Futures Trading

The Head of the Indonesian Commodity Futures Trading Regulatory Agency (“Bappebti”) has issued Circular Letter No. 104/BAPPEBTI/SE/07/2015 on The Use of Foreign Currencies in Commodity Futures Trading Transactions (“Circular”).

The Circular aims to provide legal certainty with regard to futures trading that utilizes foreign currencies. This comes in the wake of Bank Indonesia (BI) issued Regulation No. 17/3/PBI/2015 on the Mandatory Use of Rupiah within Indonesian Territory[1] (“BI Regulation”), which mandates that all transactions taking place within Indonesia should use rupiah.[2]