The Jakarta Post
The Indonesian Chambers of Commerce and Industry (Kadin) is welcoming, with some caveats, a Bank Indonesia regulation requiring exporters to deposit foreign exchange earnings in local banks, a Kadin member says.
“We have no problem with the regulation. However, we often have issues with local banks that have yet to properly introduce the regulation and its mechanism to exporters,” Kadin member Ade Sudrajat, who is also the chairman of the Indonesian Textile Association (API), said during a discussion with Bank Indonesia in Jakarta on Thursday.
Under the central bank’s regulation, exporters must deposit their foreign currency earnings with local banks within 90 days of receiving payments.
Local exporters reportedly deposit their foreign currency-denominated export earnings in overseas financial institutions to take advantage of higher returns.