TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Your letters: No-dollar rule

I suggest that Bank Indonesia (BI) revise a ban on the use of US dollars for domestic transactions that takes effect on July 1

The Jakarta Post
Thu, July 2, 2015

Share This Article

Change Size

Your letters: No-dollar rule

I

suggest that Bank Indonesia (BI) revise a ban on the use of US dollars for domestic transactions that takes effect on July 1. The measure has heightened worries among major importers and state-owned enterprises (SOEs).

If implemented as planned, it would inevitably distort the Indonesian economy. We trust that BI is still independent and has the right to act to prevent this country from economic distortion.It'€™s not the time for the government of Indonesia or BI to issue a central bank regulation to forbid the use of non-rupiah transactions in a bid to rein in onshore demand for US dollars and stabilize the rupiah.

This is not the right measure to bolster the increasingly weak rupiah. There are many other ways to strengthen the rupiah that need to be discussed by our economic thinkers.  

Businesses selling everything from apartments to electronic goods still quote their prices in US dollars to avoid unwanted price fluctuations; many manufacturers still use dollars to purchase imported goods for their production inputs. If this policy is implemented, it risks discouraging them from continuing their business.

While the measure may boost demand for the rupiah in the short term, in the long run it could destroy our economy by creating rupiah '€œborrowers'€.

Our economy will be in limbo. We will be in danger. There will be a serious risk and danger for our economy in the future, since many SOEs, businesses and agencies depend on US dollars for their daily transactions. Our seaports use dollars to manage their business, so when the ban comes into force, harbor activity may come to a standstill.

Yes, there are many who accept the no-dollar rule, but in their hearts they want to leave and transfer their business investments to other countries. In their minds, Indonesia is now not a safe investment destination.

It is urgent that BI revoke the plan to ban US dollars. The rupiah must never be imposed as the sole transaction currency in Indonesia.

Hot Saut
Jakarta

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.