BI Governor Calls on Industries to Use Rupiah

A teller counts Indonesian rupiah bank notes for a customer at a money changer in Jakarta, February 18, 2016. REUTERS/Garry Lotulung

TEMPO.CO, Jakarta-Bank Indonesia (BI) Governor Agus Martowardojo asked Industry Ministry Saleh Husin to call on the industry sector to use rupiah in transactions.

"Earlier, there were still many transactions made in foreign currencies. Last year, the value of the transactions stood at US$7 billion per month," Agus said in Jakarta on Wednesday, March 02, 2016.

However, Agus revealed that the figure had decreased to less than US$4 billion per month. He added that the BI's regulation to use rupiah in transactions in Indonesia must be supported by all.

He also discussed certain industry sectors that needed to shift from foreign currencies to rupiah as their means of transactions. Meanwhile, BI would further discuss several industries with certain characteristics to use the US dollar for their transactions in Indonesia.

"However, we need to emphasize that the law on currencies is clear. Transactions in Indonesia must use rupiah. And if using foreign currencies is unavoidable, there are certain regulations governing the situation," Agus added.

The BI Governor explained that using rupiah in business transactions would strengthen rupiah's exchange against the US dollar. He hopes that the use of US dollar can be reduced to less than US$4 billion per month.

ANTARA

Source: BI Governor Calls on Industries to Use Rupiah