ID :
29858
Wed, 11/12/2008 - 23:51
Auther :
Shortlink :
http://m.oananews.org//node/29858
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BANK INDONESIA ISSUES REGULATION ON FOREIGN CURRENCY PURCHASES
Jakarta, Nov 12 (ANTARA) - Bank Indonesia has issued a regulation on foreign currency purchases using the rupiah to reduce pressure on the Indonesian currency as well as to maintain the balance between supply and demand and minimize speculation.
"The regulation remains based on the current free floating system," the central bank's deputy governor Miranda Goeltom said at a press conferece here on Wednesday.
She said individuals, Indonesian legal entities and foreign parties conducted a purchase of foreign currencies worth more than US$100,000 a month had to report the reasons for it.
"Individuals and Indonesian legal entities in particular also have to attach their tax number (NPWP)," she said.
She said the regulation would only be effective for foreign parties buying in the spot market.
In her explanation she said anyone buying goods using dollars worth more than US$100,000 had to present the document stating the reason why he or she did it to the bank where he or she conducted the transaction. "For example she or he has to pay for an apartment or others using dollar. She or he has to show the document for it," she said.
She said Bank Indonesia did not wish to impost limitation. "We only want to assure a normal purchase or that it will not be used for speculation," she said.
She said the regulation would be made effective as of November 13, 2008. However sanctions would only be implemented on December 1, 2008. "We want to give a transitional period," she said, adding that the sanction would be put in the form of a fine.
She said the regulation was needed because of the current tight liquidity as funds were flowing to the US.
"In the meeting in Sao Paolo, none of the 40 central bank governors stated that a speculation had been going on. What happened was that because of a credit crisis in the US, funds were flowing there as investors needed them to cover their loss causing foreign currency reserves in various countries to dry up," she said.
"The regulation remains based on the current free floating system," the central bank's deputy governor Miranda Goeltom said at a press conferece here on Wednesday.
She said individuals, Indonesian legal entities and foreign parties conducted a purchase of foreign currencies worth more than US$100,000 a month had to report the reasons for it.
"Individuals and Indonesian legal entities in particular also have to attach their tax number (NPWP)," she said.
She said the regulation would only be effective for foreign parties buying in the spot market.
In her explanation she said anyone buying goods using dollars worth more than US$100,000 had to present the document stating the reason why he or she did it to the bank where he or she conducted the transaction. "For example she or he has to pay for an apartment or others using dollar. She or he has to show the document for it," she said.
She said Bank Indonesia did not wish to impost limitation. "We only want to assure a normal purchase or that it will not be used for speculation," she said.
She said the regulation would be made effective as of November 13, 2008. However sanctions would only be implemented on December 1, 2008. "We want to give a transitional period," she said, adding that the sanction would be put in the form of a fine.
She said the regulation was needed because of the current tight liquidity as funds were flowing to the US.
"In the meeting in Sao Paolo, none of the 40 central bank governors stated that a speculation had been going on. What happened was that because of a credit crisis in the US, funds were flowing there as investors needed them to cover their loss causing foreign currency reserves in various countries to dry up," she said.
