Indonesian Ban on Foreign Currency Comes in Force

The regulation was issued by Indonesia's Central Bank on March 31, and dictates that the Indonesian Rupiah must be used for all cash or non-cash transactions.

The Indonesian Central Bank issued a new regulation that took effect on July 1, which dictates the mandatory use of the Indonesian Rupiah for all domestic transactions and requires that all price quotations of goods and services be made in Rupiah. 

The regulation is intended to stabilize the Indonesian currency, which has weakened by seven percent against the dollar this year; on July 1 it was valued at 13,315 to one US dollar. 

According to Regulation 17, which follows the passing of the 2011 Currency Law, those who break the law face a punishment of up to one year in prison or a fine of up to two hundred million rupiah [$15,000].