In a bid to increase the usage of electronic money and the number of cashless transactions, Bank Indonesia has issued Circular Letter No. 18/21/DKSP Year 2016 which amends BI Circular Letter No. 16/11/DKSP Year 2014 on the Organization of Electronic Money. The Amendment revises a number of provisions which are of relevance to both existing and prospective organizers of e-Money, as well as to organizers of digital financial services, including: maximum e-Money value, trials undertaken by e-Money issuers, cooperation involving the organization of e-Money, and monitoring and reporting obligations.

Bank Indonesia recently issued Regulation No. 18/15/PBI/2016 on the Organization of Rupiah Currency Processing Services (?2016 Regulation?), which sets out guidelines for the processing of the rupiah currency across the country by private security companies which have been acknowledged as rupiah-currency processing-service organizers (penyelenggara jasa pengolahan uang rupiah ? ?PJPUR?). These guidelines cover a broad range of provisions, and so this edition of Indonesian Legal Brief (ILB) will limit its discussions to the following matters: 1) Rupiah-currency processing services; 2) Licensing procedures; 3) Cooperation agreements; and 4) Mandatory PJUPR obligations.

Bank Indonesia has introduced a new standard for monetary operations through BI Regulation No. 18/12/PBI/2016 on Monetary Operations. The new monetary operations standard uses the PUAB O/N Interest Rate and BI?s seven-day reverse repo interest rates as the basis upon which monetary stability objectives are to be determined.

Bank Indonesia has finally issued one of its most highly anticipated new policies, which is aiming to accommodate the high demand for property ownership. Regulation?No. 18/16/PBI/2016 sets higher Loan-to-Value (?LTV?) and Financing-to-Value (?FTV?) ratios, which should result in a greater amount of loans or financing facilities being extended by banks to any parties wishing to own property.

Through BI Regulation No. 18/10/PBI/2016 (2016 Regulation), BI intends to improve transparency and information availability for foreign exchange and customer traffic (LLD) activities, an area which was previously regulated under BI Regulation No. 13/21/PBI/2011. Under the new 2016 Regulation, customers are required to provide additional supporting documents in accordance with the amount of any transaction that they undertake. This is a new requirement which was previously not regulated

The 2016 Circular Letter, on the other hand, further regulates the national standard for the management of chip technologies for ATM and debit cards.

In essence, the Third Amendment redefines three main provisions relating to: 1) the authority of the Indonesian Investment Coordinating Board (?BKPM?) to supervise the opening of new branches of freight-forwarding service businesses; 2) the validity of freight-forwarding service business licenses; and 3) leniency under certain conditions for freight-forwarding service businesses which do not satisfy the minimum capital-threshold requirements for the securing of business licenses.

The 2015 Circular aims to strengthen the security of Card-Based Payment Instruments (Alat Pembayaran dengan Menggunakan Kartu ? ?APMK?) by mandating that the owners of Automated Teller Machines (ATM) and/or the issuers of debit cards incorporate chips, magnetic strips and six-digit personal identification numbers (PIN) into their ATM and debit cards.

The ultimate aim of the Amendment is to improve the stability of rupiah exchange rates by stimulating foreign-currency transactions within the domestic market through banks.

Bank Indonesia (?BI?) has issued Circular Letter No. 17/39/DPM on Standing Facilities (?2015 Circular?) in order to improve monetary-operation transactions in Indonesia. To that end, the 2015 Circular updates the guidelines for standing-facility activities