BI issues new regulations

Bank Indonesia (central bank/BI) will soon issue a regulation requiring exporters to put foreign exchange earnings in national foreign exchange banks as of October 1, 2011.

“The Bank Indonesia regulation will be issued at the end of September and begin to take effect on October 1 with a period of transition until December 31, 2011 to allow exporters to adjust to it,” Bank Indonesia Governor Darmin Nasution said here on Wednesday.

The regulation will also require borrowers of foreign loans to put foreign loans in national foreign exchange banks.

Darmin said BI would also give exporters until a maximum of six months in 2012 after exporting goods by filling export notifications and a maximum of three months after filling export notifications in 2013 to put their foreign exchange earnings in national foreign exchange banks.

However, sanctions on exporters and borrowers who do not put their foreign exchange earnings and foreign loans in national banks will only take effect as of January 2, 2012.

Darmin said the policy was aimed at ensuring the supply of foreign currencies which had so far relied on capital inflows and foreign loans.

“The policy will build our national economic stability and resilience. By issuing the regulation, the supply of foreign currencies will no longer rely on capital inflows so we will be free from unnecessary upheavals and our banking rates will become attractive,” he said. (*)

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