BI sets range for forex exchange report<\/p>\n
JAKARTA (JP): Bank Indonesia (BI) deputy governor Achjar Iljas
\nsaid on Wednesday the minimum amount of foreign exchange
\ntransactions required to be reported under the newly enacted
\nforeign exchange monitoring law would be between US$5,000 and
\n$10,000.<\/p>\n
He said the exact amount awaiting the conclusion of an
\nintensive evaluation by the central bank.<\/p>\n
\"We are trying to find an amount level which is just
\nsignificant enough economically, but not too low as to
\noperationally burden the institutions who will do the reporting,\"
\nhe said.<\/p>\n
The foreign exchange monitoring law, enacted in May this year,
\nand attendant regulations require banks and nonbank financial
\ninstitutions in the country to report foreign exchange
\ntransactions to the central bank starting next April.<\/p>\n
Achjar said BI was talking with a number of banks to discuss
\nan appropriate minimum amount level for reporting forex
\ntransactions.<\/p>\n
He said a level which was too low would burden banks and other
\nreporting institutions with administrative work because of the
\nhigh volume of transactions.<\/p>\n
BI has until April to evaluate and determine the reasonable
\nminimum amount, Achjar said.<\/p>\n
\"We are now studying the past forex transaction statistics. We
\nput a series of hypothetical numbers as the minimum amount and
\nwill see what the volume of the forex transaction report would
\nturn out to be.\"<\/p>\n
Achjar said the forex monitoring system would mainly provide
\nthe central bank with more accurate and timely statistical data
\nfor the country's balance of payments and the flow of capital
\nrecords.<\/p>\n
\"All these data are used as the basis for BI to make
\ndecisions, particularly on the monetary and banking sector,\" he
\nsaid.<\/p>\n
In implementing the forex monitoring law, BI issued Regulation
\nNo. 1\/9\/1999 on Oct. 28<\/p>\n
Banks and nonbank financial institutions must report the
\namount and type of transactions, the purpose of transactions, who
\nordered the transaction, the name of the counter parties and the
\ncountries where the counter parties are located.<\/p>\n
Bank and nonbank financial institutions must also report
\nrupiah transactions with non-Indonesian residents.<\/p>\n
Achjar said institutions failing to comply with the ruling
\nwould risk incurring penalties. He stressed that BI did not
\nexpect to issue the penalties and hoped all parties would report
\ntheir forex transactions voluntarily.<\/p>\n
According to the ruling, a delay in the reporting is liable to
\na penalty of Rp 5 million per day for banks and Rp 1 million per
\nday for nonbank financial institutions.<\/p>\n
Banks which do not report their forex transactions risk a
\npenalty of Rp 100 million, and Rp 20 million for nonfinancial
\ninstitutions, plus a penalty for each day of the delay.<\/p>\n
Achjar said BI would not publish individual reports of forex
\ntransactions because they were confidential.<\/p>\n
\"But an aggregate amount of transactions for all transaction
\ngroups were not confidential and thus will be published by BI
\nregularly,\" he said.<\/p>\n
The ruling also stipulates that banks which do not report
\ncorrect or complete information will be sanctioned with a penalty
\nof Rp 100 million, and Rp 20 million for nonbank financial
\ninstitutions.<\/p>\n
The ruling says that a bank which fails to report its forex
\ntransactions for six consecutive periods or a maximum of six
\nmonths would risk having its license suspended by the central
\nbank.<\/p>\n
It also stipulates that if a similar omission is committed by
\na nonbank financial institution, Bank Indonesia will recommend
\nits closure.<\/p>\n
Another BI deputy governor, Miranda Goeltom, said previously
\nthat the forex transaction reporting system would not discourage
\nforeign investors from entering the country because it would
\nlessen Indonesia's risk as the monetary and banking policy design
\nwould be better.<\/p>\n
\"In the past the risk was higher because investors perceived
\nthat we didn't have good data for policy design,\" she said. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bi-sets-range-for-forex-exchange-report-1447893297",
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