BI has issued this Third Amendment with the intent of boosting the foreign-currency supply within the domestic forex market, which will in turn hopefully improve the economy. The Third Amendment also aims to stabilize exchange rates and strengthen the domestic financial market.

The Second Amendment intends to improve the management of freight-forwarding businesses by ensuring legal certainty and correct business-license processing.

Efforts by Bank Indonesia (?BI?) to stabilize the current exchange rate volatility of the Indonesian rupiah (?IDR?) as it stands against the US Dollar (?USD?) continues apace. In a new initiative, BI Regulation No. 17/14/PBI/2015 (?Amendment?) has just been issued and amends BI Regulation No. 16/17/PBI/2014 on Foreign Currencies against Rupiah Transactions between Banks and Foreign Parties (?2014 Regulation?).

The Amendment limits the amount of selling and buying of USD , which can be undertaken by banks through spot or derivative transactions such as: forwards, swaps, or options.

The Draft Bill aims to realize the goal of a cashless society by setting limitations on the use of physical currency (banknotes and coins) for transactions taking place within Indonesia, and includes exemptions, as well as various monitoring and evaluation measures. The Draft Bill also outlines the sanctions to be applied in cases of non-compliance.

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 (?BI Regulation?), which mandates that all transactions taking place within Indonesia should use rupiah.

The stated aim of the 2015 Regulation is to maintain and preserve the rupiah?s exchange rate by strengthening the supervision of monetary related matters. Under the 2015 Regulation, BI may perform indirect supervision and examinations of individuals and business entities to ensure their compliance with monetary regulations.

Bank Indonesia (?BI?) has issued Regulation No. 17/10/PBI/2015 on Loan to Value Ratio or Financing to Value Ratio for Loan and Financing Facilities for Property and Advance Payments for Loans or Financing Facilities for Motor Vehicles (?2015 Regulation?). The 2015 Regulation also sets out criteria of commercial and sharia banks that are eligible for the new LTV and FTV ratios.

The Circular serves to further stipulate details on the mandatory use of Rupiah, as mandated by BI Regulation No. 17/3/PBI/2015 on Mandatory Use of Rupiah Currency in Indonesian Territory (?2015 Regulation?) and Law No. 7 of 2011 on Currency (?Currency Law?).

The Regulation sets out guidelines for operating freight forwarding businesses which provide services to deliver goods via land, water, and/or air transportation. Freight forwarding businesses mainly deal with: (i) determining the safest delivery route; (ii) packing the goods; (iii) managing insurance for delivering the goods; (iv) preparing and/or examining relevant documents.