ndonesian central bank overhauled the provisions on export proceeds and foreign exchange for imports as stipulated in Bank Indonesia Regulation (PBI) Number 22 of 2020 - Photo: Privacy

JAKARTA (TheInsiderStories) – Indonesian central bank overhauled the provisions on export proceeds and foreign exchange for imports as stipulated in Bank Indonesia Regulation (PBI) Number 22 of 2020, the decree showed. There are several rules that will be changed, such as the administrative sanctions on importers, which originally effective on Jan. 1, 2021, will postpone to Jan. 1, 2022.

The difference between export proceeds and permit equivalent to Rp50 million (US$3.57 million) or not more than 2.5 percent of export values. Banks can lend the exporters on the their account if the Financial Transaction Messaging System for the receivers has been completed with export information.

Since last year, the government chopped export procedure for natural resources to boost foreign exchange (forex) revenues and to anticipate capital outflow from the country, said senior minister last week. The policy also aimed to maintain the stability of the Rupiah against the turmoil of global economic condition.

The regulation is stated in Government Regulation Number 1 Year 2019 concerning Foreign Exchange Exports from Natural Resources Management, Management and/or Processing Activities. The country also regulated the forex revenues originating from the natural resources sector, especially mining, plantation, forestry and fisheries to be placed in a special account in local bank.

Its expected, the proceeds to be able enter the Indonesian financial system also to strengthen the current account deficit (CAD), which has been experiencing a sharp deficit last year. The government also imposes administrative sanctions for exporters who do not want to place the forex proceeds in a special bank account within the country by the end of the third month after the registration of export customs notification.

Indonesia was also trying to increase the export volume of various commodities by reducing the obligation of surveyor report participation and a limited ban on a number of products would also be re-evaluated. As an example, to improve the efficiency of the logistics sector.

Written by Editorial Staff, Email: theinsiderstories@gmail.com