To protect rupiah, BI cut foreign exchange purchase limit to US$50,000

JAKARTA — Bank Indonesia (BI) has lowered the maximum limit for foreign currency purchases against the rupiah from US$100,000 to US$50,000 per person per month. The policy takes effect on 1 April 2026 as part of efforts to maintain rupiah stability.

BI Governor Perry Warjiyo said the move is part of strengthening foreign exchange market transaction policies. “The adjustment of the cash purchase threshold for foreign currency against the rupiah from US$100,000 to US$50,000 per person per month is carried out to support rupiah exchange rate stability,” he said during a virtual press conference on Tuesday (17/3).

BI has also raised the transaction limit for Domestic Non-Deliverable Forwards (DNDF) from US$5 million to US$10 million per transaction. The limit for swap transactions, both buy and sell, has likewise been increased to US$10 million per transaction.

On the reporting side, BI has tightened Foreign Exchange Traffic (LLD) requirements by lowering the threshold for mandatory supporting documents for overseas foreign currency transfers from US$100,000 to US$50,000. This rule also comes into effect in April 2026.

These measures were taken in response to global pressures, including conflict in the Middle East, which have affected the rupiah’s movement. As of 16 March 2026, the rupiah stood at IDR 16,985 per US dollar, weakening 1.29% compared with the end of February 2026.

“BI will continue to strengthen various policies to maintain rupiah stability amid global uncertainty,” Perry said. (DK)

According to a currency market analyst, BI has essentially implemented three key policies.

1. Lowering the foreign currency purchase limit from US$100,000 to US$50,000 per month. This means the public faces tighter limits on buying US dollars. “This is normal; several other countries apply similar rules.”

2. Raising the DNDF and swap transaction limits to US$10 million per transaction. This gives market participants more room to hedge against exchange rate risks. “With the new rules, companies, importers, or investors can now hedge currency risk in larger amounts without splitting transactions into smaller ones.”

   A simple example, he explained, is a company that needs to pay US$8 million in imports next month. If it fears the dollar will rise, it can use DNDF or swap instruments to lock in today’s exchange rate. “Previously, with a US$5 million limit, they had to split it into two transactions. Now they can do it in one go, which is simpler and more flexible.”

3. Tightening rules on overseas foreign currency transfers by lowering the supporting document threshold to US$50,000. “This means any transaction above that amount must be accompanied by supporting documents.” (DK/MT/LM)