Local Currency-Settlement Framework Updated

Bank Indonesia (“BI”) recently issued Regulation No. 22/12/PBI/2020 of 2020 on the Settlement of Bilateral Transactions Through the Use of Local Currency via Banks (“Regulation 12/2020”), which contains a set of updated provisions on the implementation of local currency-settlement activities in an attempt to maintain the stability of the Indonesian rupiah currency.[1]

Previously, similar provisions were set out under Regulation of BI No. 19/11/PBI/2017 of 2017 on the Settlement of Bilateral-Trade Transactions Through the Use of Local Currency Settlements via Banks (“Regulation 11/2017”),[2] which now has been repealed and replaced by Regulation 12/2020.[3]