Exporters benefits not allowed to travel
The central bank of Indonesia will require exporters to repatriate their profits earned abroad, to improve governance and reduce the country’s exposure to movements in short-term capital, said a spokesman Saturday.
New legislation, expected to be implemented from this month, will require companies to repatriate their profits earned from exports and denominated in foreign currencies, said Difi Johansyah.
This could allow the return to Indonesia of some $ 31.5 billion in foreign currency, the source said.
Our goal is to strengthen our domestic foreign exchange market,” he told AFP M. Johansyah.
At present, exporting firms must comply with any regulatory requirement for the management of their funds abroad.
Several emerging countries, including Indonesia, concerned about the sheer scope of the current inflow of foreign capital into their economies, as investors are attracted by returns on investment much higher in the region, those countries industrialized.