Local Currency Transaction

Local Currency Transaction

---

Outward Remittance service transaction to Malaysia, Thailand, Japan, and China settled using the respective local currencies of the related countries, Malaysian Ringgit (MYR), Thai Baht (THB), Japanese Yen (JPY), Chinese Yuan (CNY), or Indonesian Rupiah (IDR), which is more convenient and gives you more benefits to your trade of goods and services transaction.

Benefit

---

Wide scope of transaction purpose

Local Currency Transaction can be used for a wide scope of transaction purpose, i.e

• All payment for trades of goods and service activity between Indonesia with the related countries (excl. grants, donation, etc)
• Payment for education, health service, and living cost
• Payment and receipts related to employment fund
• Transfer of income and payment for investment (direct investment, portfolio, etc)

Ease of transaction

• Competitive price and rates
• Investment alternative using related local currency
• Faster transaction settlement
• Easier requirement related to underlying document regulation for buy/sell foreign currency transaction above the regulated threshold
• LCT transaction can open opportunity of obtaining customs and excises incentives in the form of minimized operational risks and chances of your imported goods being put on hold for inspection. To apply for customs and excise incentives, you need to:
  • Submit underlying document for every LCT transaction to BCA (mandatory although the transaction nominal is below the threshold)
  • Submit the same invoice that you process for Import Notification Registration (PIB) to BCA
  • LCT transactions must be carried out no later than D-2 before PIB registration