Starting from March 5, 2018, Indonesian citizens as well as foreigners need to be a bit more careful when bringing foreign-denominated cash money into Indonesia. A new Bank Indonesia regulation sets a IDR 1 billion (approx. USD $75,000) ceiling on the total amount of foreign cash money an individual can bring into Indonesia.
The new regulation of the country's central bank (Bank Indonesia) only allows banks and licensed money changers to bring in foreign bank notes worth more than IDR 1 billion. If an individual carries the equivalent of more than IDR 1 billion into Indonesia, then customs will have the power to confiscate the money.
Currently, there is no ceiling on the amount of foreign bank notes that are carried into Indonesia although authorities require cash worth more than IDR 100 million (approx. USD $7,500) to be declared when arriving in Indonesia.
The new regulation is also designed by Bank Indonesia to have a firmer grip on the supply-side of foreign-denominated money in the country, hence safeguarding the stability of the rupiah exchange rate.
The regulation is also in support of Bank Indonesia's efforts to combat the use of foreign currency in domestic transactions. On 1 July 2015, Bank Indonesia's Regulation No. 17/3/PBI/2015 on the Mandatory Use of the Rupiah in Indonesia came into effect. This regulation restricts the use of foreign currencies in transactions conducted in Indonesia. The regulation aims to deepen the domestic rupiah market and stabilize the rupiah exchange rate (which is vulnerable to depreciation in times of global turmoil).
On Monday (15/05) the Indonesian rupiah appreciated 0.20 percent to IDR 13,303 per US dollar (Bloomberg Dollar Index). Meanwhile, Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) appreciated 0.16 percent to IDR 13,319 per US dollar.
Indonesian Rupiah vs US Dollar (JISDOR):| Source: Bank Indonesia