Bank Indonesia to Limit Dollar Purchases to US$10,000 per Month Starting July

Bank Indonesia (BI) is further tightening its regulations on foreign currency transactions, announcing a new limit of US$10,000 per person per month for foreign currency purchases without supporting documents. This policy, set to take effect on July 1, 2026, represents a significant reduction from the current US$25,000 limit.

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During the first stage, when we lowered the threshold from US$100,000 to US$50,000, it reduced the average daily foreign exchange transactions by US$16 million. In the second stage, from US$50,000 to US$25,000, it reduced the daily average by US$9 million.

The central bank stated that this measure is part of its ongoing efforts to reinforce prudential principles within the financial market and to ensure the stability of the rupiah's exchange rate. BI Deputy Governor Thomas Djiwandono explained that previous reductions in the threshold have already impacted transaction volumes. Lowering the limit from US$100,000 to US$50,000 reduced average daily forex transactions by US$16 million, and the subsequent decrease to US$25,000 lowered it by another US$9 million.

BI anticipates that the new US$10,000 limit will encourage a greater proportion of foreign exchange transactions to be backed by clear underlying documents or purposes. "We project that lowering the threshold to US$10,000, effective July 1, 2026, will increase transactions backed by underlying documents to 98.1 percent of total forex transactions," Thomas said. This aims to ensure that forex activities more accurately reflect real economic needs and to curb speculative trading.

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We project that lowering the threshold to US$10,000, effective July 1, 2026, will increase transactions backed by underlying documents to 98.1 percent of total forex transactions.

Governor Perry Warjiyo highlighted that these tighter rules are designed to improve the quality of forex transactions. The policy is being implemented as the rupiah shows signs of strengthening, having closed the previous week at Rp 17,865-Rp 17,875 per US dollar, marking a 0.84 percent increase compared to the prior week. This move by Bank Indonesia underscores its commitment to maintaining financial market integrity and currency stability.

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the policy is part of the central bank’s efforts to strengthen prudential principles in the financial market while maintaining rupiah exchange rate stability.