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Print articleBank Indonesia Reporting Obligation Update
May, 2011 -
Bank Indonesia keeps track of foreign loan obligations for statistical purposes and to assist it in formulating monetary policy. It has been mandatory for some time to report foreign loans but the application of penalties has been deferred. Under some recently issued regulations, the application of penalties for non-compliance with the reporting obligations commence as of the July 2011 reporting period. The maximum penalty for non-compliance is an administrative fine of 10 million Rupiah (approximately US$1100).
On 29 December 2010, Bank Indonesia issued a new regulation on offshore loan reporting, Bank Indonesia Regulation No. 12/24/PBI/210 (“PBI 12/24”), replacing the previous regime set out in PBI No. 2/22/PBI/2000 (as amended). Bank Indonesia then issued Bank Indonesia Circular Letter No. 13/1/Dlnt on 20 January 2011 as an implementing regulation for PBI 12/24 and replacing No. 12/19/Dlnt.
Some of the provisions of note in the reporting regime are as follows:
- changes to the timing for reporting the main data of an offshore loan and/or any amendments (data pokok ULN) to Bank Indonesia. Under the new regulations, the main data of an offshore loan must be submitted to Bank Indonesia at the latest on the 10th day of the month following the signing of the loan agreement, the issuance of debt securities and/or acceptance of trade credits (as applicable). Any corrections made to the reports must be submitted to Bank Indonesia at the latest on the 20th day of the reporting month. There are ongoing monthly loan “realisation” reporting obligations. Once the initial reporting and registration is done, it should be possible to conduct the ongoing monthly realisation reporting online;
- if the last date for the submission of the report is a non-business day, the report can be submitted on the next business day rather then the preceding business day, as was previously the case;
- the application of penalties for non-compliance with the reporting obligations commence as of the July 2011 reporting period;
- individuals must report only loans equal to or in excess of the equivalent of US$200,000 whereas for legal entities all loans must be reported, with no minimum limit;
- monthly ‘realisation reports’ must be filed in the first 10 days of the following month, or the next working day;
- if a report is not filed for 6 months following the required filing date, it is considered “not filed” (rather than “late”) and is subject to the maximum fine of 10 million Rupiah. Otherwise, late reports are subject to an administrative fine of Rp.100.000 Rupiah per day;
- debtors can apply for exemptions on the basis of force majeure.
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