2022 State Budget: Fiscal Policy and Structural Reform
Amendment on DNDF Regulation
*to provide more flexibility in DNDF transaction
*to increase liquidity and efficiency in domestic foreign exchange market
BI Regulation No. 20/10/PBI/2018
AMENDMENT
BI Regulation No. 21/7/PBI/2019
Article 3
1. DNDF transactions must have Underlying
Article 6
2. Not Regulated;
Article 11
Article 3
1. Sell FX/IDR through DNDF up to $5 mio can be done without
underlying documents
Article 6
2. DNDF can be terminated (unwind);
Article 11
3. Underlying documents must be final (firm) with additional
supporting documents
4. Not Regulated;
Article 11
*Effective on May 17th, 2019; English version of the regulation is available in Bl website.
3. Underlying documents for buy FX/IDR for DNDF is :
•
Final (firm commitment) + Supporting documents
4. Underlying documents for sell FX/IDR for DNDF above
threshold $ 5 mio can be:
•
.
Final (firm commitment) + Supporting documents
Projection (anticipatory basis) + Supporting documents
Article 11
5. In using estimate underlying transaction documents in the
form of cash flow projection, Bank must evaluate the
appropriateness through:
a. Supplementary documents;
b. Historical data within at least 1 year before; and
c. Track record of the Customer or Foreign Party.
Source: Bank Indonesia
164View entire presentation