Bank Indonesia (BI) is set to implement stricter regulations on foreign currency purchases made without underlying transaction documents, capping them at US$25,000 per month. This new policy, effective from early June, mandates that any foreign currency purchase exceeding this threshold must be accompanied by relevant supporting documentation.
Deputy Governor Thomas Djiwandono announced this significant monetary policy adjustment during a press conference following the BI Board of Governors’ Meeting on Wednesday, May 20, 2026. He stated, “I want to convey here that this policy will be implemented in early June this year, meaning next month, with a one-month transition period. This allows for system adjustments within both Bank Indonesia and commercial banks.”
This initiative follows previous measures by BI to curtail speculative foreign currency transactions. The central bank had already reduced the limit for foreign currency purchases without underlying documents from US$100,000 to US$50,000. According to Thomas, these earlier tightening efforts have already demonstrated a positive impact on foreign exchange transaction volumes.
Elaborating on the policy’s effectiveness, Thomas Djiwandono, who previously served as Deputy Finance Minister, revealed that the daily average of foreign exchange transactions declined to US$62 million per day between April and May 2026. This marks a notable decrease from the US$78 million recorded during the first quarter. He expressed optimism, stating, “This means we expect this trend to continue with the next policy.”
The ongoing tightening of dollar purchases represents a crucial part of Bank Indonesia’s broader strategy to stabilize the rupiah exchange rate. Alongside these measures, BI has also increased its benchmark interest rate, the BI-Rate, to 5.25 percent, further signaling its commitment to maintaining currency stability.
Meanwhile, the rupiah experienced a slight depreciation against the US dollar, weakening by 10 points or 0.06 percent, to trade at Rp 17,677 per US dollar on Friday morning, May 22, 2026. This follows its closing position of Rp 17,667 per US dollar on the preceding day.
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Summary
Bank Indonesia is introducing a stricter policy effective this June that caps foreign currency purchases without underlying transaction documents at US$25,000 per month. This initiative follows previous reductions from US$100,000 to US$50,000, which have already successfully decreased daily foreign exchange transaction volumes. A one-month transition period will be provided to ensure both the central bank and commercial institutions can adjust their systems accordingly.
This tightening measure is a core component of the central bank’s strategy to stabilize the rupiah, alongside an increase in the benchmark interest rate to 5.25 percent. Officials anticipate that these combined actions will help mitigate speculative trading and support the currency. Despite these efforts, the rupiah recently saw a slight depreciation, trading at Rp 17,677 against the US dollar.