Indonesia-Japan Local Currency Settlements Revamped: Portfolio Investments Now Permitted as Account Limits Rise to Rp. 1.25 Trillion

Bank Indonesia (“BI”) has issued Regulation of the Board of Governors No. 10 of 2026 on the Settlement of Bilateral Transactions Between Indonesia and Japan Using the Rupiah and Yen Currencies Through Banks (“Regulation 10/2026”). This new framework has now officially repealed and replaced Regulation of the BI Board of Governors No. 22/20/PADG/2020, which bore the same title as Regulation 10/2026 and which was most recently amended by Regulation of the BI Board of Governors No. 14 of 2024 (collectively referred to as “Regulation 22/2020”).[1]