BI limits paper money carried into and out of Indonesia

Bank Indonesia (BI) decided to relaxes the macro-prudential intermediation and loan to value (LTV) ratios to strengthening banking intermediary function - Photo: Privacy

JAKARTA (TheInsiderStories) – Bank Indonesia, the country’s central bank, has issued ruling that will limit the amount of paper money to be brought out and inside the country.

Based on the ruling (PBI NO. 19/7/PBI/2017) dated on May 5, 2017, the amount of paper money of Rp1 billion can only be brought to outside and inside the country by an entity that has received permit from the authorities, including banks, foreign exchange traders and others.

The ruling was issued as the central bank noticed that there has been significant amount of people taking paper money to outside and inside the country. BI said the ruling is also aimed to aid the central bank’s move to maintain monetary stability, in particular forex market.

The ruling will be effective from March 5, 2018, while sanctions will be applied two months after the ruling becomes effective or May 7, 2018. (*)