This article is an English translation of Ketentuan Transaksi via Rekening Valuta Asing di Indonesia written by Bernadetha Aurelia Oktavira, S.H., and was published on Tuesday, 14 March 2023.
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Transactions in Foreign Exchange Accounts in Indonesia
In Kamus Besar Bahasa Indonesia (“KBBI”) a.k.a the official dictionary of the Indonesian language, an expatriate or ekspatriat in Bahasa Indonesia is a person who renounces his/her citizenship, a person who leaves his/her home country, a foreign citizen (Warga Negara Asing/ "WNA") who resides in a country, an exile, or foreign labor. So, to simplify the answer, we assume that the expatriate you are referring to is a foreigner who works in Indonesia as a foreign worker.
Also read: Requirements for Foreign Workers to Work in Indonesia
In addition, we also assume that the expatriate's personal account in question is a foreign exchange ("forex") account for foreigners in Indonesia. Furthermore, referring to Circular of OJK S-246/D.01/2015, mentions a number of requirements for opening a forex account for foreigners individually.
Furthermore, related to payments to banks, because it is not mentioned where the bank is located, we assume that the bank is a commercial bank in Indonesia. Meanwhile, employees representing expatriates are assumed to be Indonesian Citizens (Warga Negara Indonesia/ “WNI”).
The transactions in the foreign exchange market include forex transactions against the rupiah and forex transactions against foreign exchange. For example, forex transactions against the rupiah conducted between banks are carried out during the implementation window time of Bank Indonesia's open market operations, namely on weekdays at 08.00 West Indonesian Time (zone) - 16.00 West Indonesian Time (zone). Conversely, outside the timeframe, forex transactions against the rupiah conducted between banks in the forex market are prohibited.
Furthermore, throughout our search on various bank websites in Indonesia, forex account holders are given several facilities to transact using internet banking and mobile banking including checking account mutations.
Therefore, we are of the opinion that if the expatriate has a forex account in Indonesia, then he/she can transact directly without the need to use a power of attorney or give a power of attorney to another person by observing the corridors of forex transactions including the minimum daily or monthly transaction limits as stipulated in Regulation of BI 24/7/PBI/2022, Regulation of BI Board of Governors 24/10/PADG/2022, as well as the provisions of the bank concerned.
For example, a certain amount (threshold) for cash transactions to buy foreign exchange against the rupiah is USD100,000.00 or its equivalent per month per transactor in the foreign exchange market.
If they want to conduct foreign exchange transactions against the rupiah with a nominal value above a certain amount (threshold) per month, they are required to submit transaction underlying documents (activities underlying foreign exchange transactions against the rupiah) and other supporting documents as referred to in Article 27 Regulation of BI Board of Governors 24/10/PADG/2022.
The Function of Power of Attorney
However, if the assumption we built above is not entirely correct, we will explain the function of a power of attorney in general. Article 1792 Civil Code states that a power of attorney is an agreement by which one person gives power to another person, who accepts it for and on his/her behalf to carry out an affair.
So, it can be concluded that a power of attorney is a document that authorizes another party to carry out legal actions, for and on behalf of the power of attorney, because the power of attorney is unable to do it himself/herself.
Also read: Difference between General Power of Attorney and Special Power of Attorney
Answering your question, we are of the opinion that the granting of power of attorney is considered valid as long as the grantor (expatriate) gives written power of attorney to the beneficiary (employee) by emphasizing that for the purpose of payment to the bank, the beneficiary represents the grantor.
As for the large transaction value, we advise you to refer back to the relevant bank's provisions regarding transaction limits and other relevant laws and regulations (if the bank in question is abroad).
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These are the answers we can provide, we hope you will find them useful.
- Indonesian Civil Code;
- Regulation of Board of Governors Number 22/22/PADG/2020 of 2020 on Open Market Operations Instruments as amended by Regulation of Board of Governors Number 23/9/PADG/2021 of 2021 on the Amendment to Regulation of Board of Governors Number 22/22/PADG/2020 of 2020 on Open Market Operations Instruments;
- Regulation of Bank Indonesia Number 24/7/PBI/2022 of 2022 on Foreign Exchange Market Transactions;
- Regulation of Bank Indonesia Board of Governors Number 24/10/PADG/2022 of 2022 on the Implementing Regulation of Transactions in the Foreign Exchange Market;
- Circular of the Financial Services Authority Number S-246/D.01/2015 of 2015 on Opening of Foreign Exchange (Forex) Accounts by Prospective Individual Customers With Foreign Citizenship.
Ekspatriat, accessed on 13 March 2023, at 22.00 West Indonesian Time (zone).
 Article 3 Regulation of Bank Indonesia Number 24/7/PBI/2022 of 2022 on Foreign Exchange Market Transactions (“Regulation of BI 24/7/PBI/2022”)
 Article 5 Regulation of Bank Indonesia Board of Governors Number 24/10/PADG/2022 of 2022 on the Implementing Regulation of Transactions in the Foreign Exchange Market (“Regulation of BI Board of Governors 24/10/PADG/2022”) jo. Article 5 Regulation of Board of Governors Number 22/22/PADG/2020 of 2020 on Open Market Operations Instruments (“Regulation of Board of Governors 22/22/PADG/2020”).
 Article 9 section (1) Regulation of BI Board of Governors 24/10/PADG/2022.
 Article 1 number 6 Regulation of BI Board of Governors 24/10/PADG/2022.