ARTICLE · 18 FEBRUARY 2016

Update On The Obligation To Use Rupiah And Exemptions

Makarim & Taira S.

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Circular 17 further describes the details on payments in foreign exchange agreed to by the parties under a written agreement for strategic infrastructure projects which are exempted from the obligation to use Rupiah.

IndonesiaFinance and Banking

Makarim & Taira S.

As an update to our previous Newsletter regarding Regulation No. 17/3/PBI/2015 regarding the Obligation to Use Rupiah in the Territory of the Republic of Indonesia ("BI Regulation"), Bank Indonesia ("BI") has issued an implementing regulation regarding the mandatory use of Rupiah under BI Circular Letter No. 17/11/DKSP ("Circular 17").

Circular 17 further describes the details on payments in foreign exchange agreed to by the parties under a written agreement for strategic infrastructure projects which are exempted from the obligation to use Rupiah. These strategic infrastructure projects cover among others, transportation, power plants, roads, and oil and gas. In order to be exempted from the use of Rupiah for these infrastructure projects, Circular 17 sets out the following requirements:

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