Disclosure Requirements for the Carriage of Cash Funds or Other Payment Instruments into or out of Indonesia

In pursuit of its overall goal of combating money laundering and monitoring the transfer of illicit funds, the Government has issued Government Regulation No. 99 of 2016 on the Carriage of Cash and Other Instruments of Payment into or out of Indonesian Territory (“Regulation 99/2016”).This Regulation 99/2016 is an implementation of Article 36 of Law No. 8 of 2010 on the Prevention and Deterrence of the Crime of Money Laundering, and details disclosure requirements for the carriage of cash funds in excess IDR 100 million (approximately USD $7,494) either to or from Indonesian territory, as well as the various penalties for non-compliance.Disclosure ObligationsAny individual who carries (“Carriers”) cash funds or other instruments of payment (i.e. bilyet giros, cheques, traveller’s cheques, promissory notes and certificates of deposit) up to the value of or greater than IDR 100 million or its equivalent (“Funds”) into or out of Indonesian territory, must declare this information to Customs and Excise Officers (“Officers”) when entering or exiting Indonesian territory. [1] Such Declarations must be made at the point of entry into Indonesia, whether this is an international airport, seaport or postal exchange. [2] Furthermore, any such Carriers are also required to fill out a form relating to the transfer of Funds, and this form will be provided by the Officers who are working in the border area in question. [3] This form must outline information on the identity of the Carriers, as well as that of any other relevant third parties and/or intended beneficiaries of the Funds. [4] In cases where the cash is being conveyed on behalf of a corporation, then the identity of the corporation in question must also be disclosed. [5] In addition to the above disclosure requirements, in cases where the total value of the Funds is greater than IDR 100 million and the Funds in question are to be carried from Indonesia to location(s) overseas, then Carriers are required to also obtain approval from Bank Indonesia in order to comply with Bank Indonesia Regulation No. 4/8/PBI/2002 on Requirements and Procedure for the Carriage of Rupiah into or out of Indonesia (“Regulation 4/2002”). [6] Foreign Currency Exchange RateIn cases where cash and/or payments are to be carried in currencies other than the Rupiah, then they will be converted using the official exchange rate determined by the Ministry of Finance. [7] ExaminationsUpon taking receipt of a declaration, the Officers will examine its validity. The Carriers will consequently be subject to fines if the Officers find that: 1) The actual Funds are greater than the information stated in the declaration; or 2) The Carriers has failed to declare the full amount of the Funds which are being carried with them. [8] Meanwhile, if the amount stated in the declaration conforms to the examination results, then the Officers will grant approval for the party as regards the carrying of the funds. Note that the Officers may also undertake further examinations if they have suspicions which are based on the following considerations: [9]