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Print articleIndonesia: Export Earnings and Withdrawal of Offshore Loans
January, 2012 -
Bank Indonesia (BI) issued a new Bank Indonesia Regulation No. 13/2011 on 30 September 2011 on Receipt of Export Earnings in Foreign Exchange and Withdrawal of Offshore Loans in Foreign Exchange. The new regulation will be effective as of 2 January 2012.
All Indonesian exporters must deposit their export earnings in local commercial banks authorized by BI to conduct banking transactions using foreign exchange (this includes foreign bank branches in Indonesia, but not branches of Indonesian banks located abroad), within a certain time frame after the date of the Goods Export Notification. After receipt of earnings through such local bank, the exporter must report the information contained in the Goods Export Notification to the bank, who must then forward it to BI. It seems that the regulation was issued to monitor that the value of the export earnings received is the same as the value stated in the Goods Export Notification.
Offshore loans in foreign exchange must be drawn down by debtors through local banks and reported to BI. This applies if the loans are granted/received in cash (a) under a loan agreement for a non-revolving facility which will not be used for refinancing, (b) due to any difference between the value of the refinancing facility and the relevant existing loan, or (c) based on debt securities in the forms of bonds, medium term notes, floating rate notes, promissory notes and commercial paper. If the accumulated value is less than the commitment value, the debtor must provide a written explanation of the difference to BI;
In monitoring the debtor’s compliance with this regulation, BI may ask for any evidence, records or other documents, and involve other institutions as necessary. Violations are subject to fines of up to IDR 10,000,000. The regulation does not require export earnings or offshore loans in foreign currencies to be converted to Rupiah.
All Indonesian exporters must deposit their export earnings in local commercial banks authorized by BI to conduct banking transactions using foreign exchange (this includes foreign bank branches in Indonesia, but not branches of Indonesian banks located abroad), within a certain time frame after the date of the Goods Export Notification. After receipt of earnings through such local bank, the exporter must report the information contained in the Goods Export Notification to the bank, who must then forward it to BI. It seems that the regulation was issued to monitor that the value of the export earnings received is the same as the value stated in the Goods Export Notification.
Offshore loans in foreign exchange must be drawn down by debtors through local banks and reported to BI. This applies if the loans are granted/received in cash (a) under a loan agreement for a non-revolving facility which will not be used for refinancing, (b) due to any difference between the value of the refinancing facility and the relevant existing loan, or (c) based on debt securities in the forms of bonds, medium term notes, floating rate notes, promissory notes and commercial paper. If the accumulated value is less than the commitment value, the debtor must provide a written explanation of the difference to BI;
In monitoring the debtor’s compliance with this regulation, BI may ask for any evidence, records or other documents, and involve other institutions as necessary. Violations are subject to fines of up to IDR 10,000,000. The regulation does not require export earnings or offshore loans in foreign currencies to be converted to Rupiah.
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