Implementation of Domestic Non-Deliverable Forward Transactions by Banks

With the ultimate aim of stabilizing the rupiah exchange rate, as well as developing hedging instruments within the domestic foreign-exchange market, [1] Bank Indonesia (“ BI ”) has issued Regulation on Domestic Non-Deliverable Forward Transactions ( "Regulation 20/2018") In order to achieve these goals, Regulation 20/2018 encompasses several provisions which specifically address the implementation of domestic, non-deliverable forward (“ DNDF ”) transactions by domestic conventional and/or sharia banks (“ Banks ”), including the following matters: