Bank Indonesia has issued regulation 7/37/PBI/2005 concerning Net Open Positions of General Banks. This regulation is the second amendment issued towards general bank’s NOP. It has been issued to support economic growth and to protect Rupiah’s stability.

In principle, the regulation sought for banks to manage and protect their respective net open positions throughout the day based on principles of due care. Banks shall maintain a net open position of a maximum of 20% of capital and a maximum of 20% of the balance sheet of that capital. Such 20% maximum threshold is not an end of day limit but the applicable limit at any point throughout the day. This is intended to ensure that banks do not amount losses above 20% during the day and try and recoup these losses at some later point in the day to bring them under the 20% threshold. The regulation provides fines of up to IDR 250 million to be levied for each day a breach occurs of the relevant provisions. This Regulation came into force on 3 October 2005.