The Fourth Amendment significantly tightens foreign exchange monitoring by lowering the monetary threshold for mandatory supporting documents on outgoing foreign currency transfers from US$ 50,000 to US$ 25,000. This regulatory shift demands that banks and corporate customers immediately upgrade their internal compliance protocols to validate mid-tier cross-border payments. By expanding the scope of reportable transactions, the central bank aims to ensure currency movements reflect genuine economic activities, materially increasing the administrative burden for international commerce.

This Amendment revises the applicable sharia foreign exchange transaction framework in order to improve alignment with the conventional foreign exchange regulatory regime. The Amendment also imposes stricter timing and documentation requirements for cover hedging and re-hedging transactions, expands the list of ineligible underlying assets, and introduces a new financing mechanism that is secured through fund placements. Through this harmonization, Bank Indonesia (BI) is seeking to ensure greater consistency between sharia and conventional foreign exchange regulations while maintaining a degree of regulatory flexibility that is capable of responding to market developments.

Bank Indonesia has now significantly tightened the threshold for spot foreign exchange purchases against the rupiah currency that can be executed and that require underlying transaction documents, thereby lowering the limit from US$ 50,000 to US$ 25,000 per month. This shift requires strict compliance in terms of documents and proactive liquidity management by corporate participants who are navigating smaller routine currency conversions

Entities eligible to be appointed as Primary Dealers in the Money Market and Foreign Exchange Market (Pasar Uang dan Pasar Valuta Asing - ?PUVA?) must operate as issuers of money market instruments or participants in PUVA transactions, and include banks or other entities designated by Bank Indonesia (?BI?). These parties are required to act as market makers, must actively engage in open-market operations and PUVA transactions and must fulfill various additional obligations, as mandated by BI. Any failure to comply with these obligations may lead to the imposition of administrative sanctions that range from written reprimands to temporary suspensions to revocations of Primary Dealer approvals

This Regulation has now officially increased the end-of-day, aggregate balance limit for any Rupiah, Special Purpose, Non-Resident Accounts (?SNA Rupiah?) that are held by Japanese Appointed Cross-Currency Dealer (?ACCD?) Banks in Indonesian ACCD Banks from Rp. 1 trillion to Rp. 1.25 trillion. This new Regulation has also expanded the scope of permissible underlying transactions for bilateral rupiah-yen settlements and recognizes cross-border payment facilities that utilize QR payments or other types of payment infrastructure.

Bank Indonesia (?BI?) implements macroprudential policies in order to achieve optimal credit and financing, a stable financial system, and green and inclusive financing with the ultimate goal of supporting sustainable economic growth. In order to achieve each of these objectives, BI implements various instruments through different Regulations on macroprudential policies that commercial banks, both conventional and sharia, are required to comply with. Any non-compliance with these regulations by commercial banks will result in the imposition of administrative sanctions.

The Third Amendment has now lowered the value thresholds for outgoing foreign-exchange transfer transactions. All such transactions must be accompanied by relevant supporting documents if they are valued in the US$ 50,000 - US$ 100,000 range. Furthermore, all outgoing foreign-exchange transfer transactions must be covered by complete sets of supporting documents by a deadline of 31 July 2026.

This Amendment strengthens the regulatory framework that governs foreign exchange by revising various underlying transaction thresholds, removing futures from permitted derivative transactions and clarifying structured products. The revised framework also tightens compliance through the introduction of stricter cover hedging timelines, additional verification requirements and a clearer sanctions and reporting framework. Transitional measures will allow pre-existing transactions to follow the prevailing framework and will allow limited extensions for document submissions and reporting corrections that will run until 31 July 2026.

This new framework introduces a comprehensive assessment metric aimed at strengthening Indonesia?s payment system industry. This metric is known as the Transaction, Interconnectivity, Competency, Risk Management and Information Technology Infrastructure (Transaksi, Interkoneksi, Kompetensi, Manajemen Risiko dan Infrastruktur Teknologi Informasi/TIKMI) system. Under this new framework, Payment System Service Organizers (Penyelenggara Jasa Sistem Pembayaran ? ?PSP?) have now been reclassified as Primary PSP and Non-Primary PSP and are subject to a revised activity bundling structure. The new Regulation also further strengthens this important industry through the introduction of tighter business planning and capital adequacy requirements that will now support financial resilience and operational stability across the payment system ecosystem.

In addition to clarifying several of the core 15 obligations that apply to participants in the Bank Indonesia-Fast Payment ("BI-FAST") services system ("Participants"), this Second Amendment now includes four additional obligations aimed at ensuring the overall organization and safety of the BI-FAST system, including: 1) Must establish dedicated teams capable of initiating incident response and recovery measures; 2) Must provide regular training; and 3) Must conduct regular reconciliation of BI-FAST transactions. Moreover, the proactive risk management feature that was originally mandated for inclusion as part of the BI-FAST infrastructure has now been redefined as the Fraud Detection System (FDS).