Dollar purchases from SOEs to be regulated<\/p>\n
The Jakarta Post
\nJakarta<\/p>\n
The Office of the State Minister for State Enterprises is
\nformulating a scheme with Bank Indonesia to manage and control
\nthe purchase of dollars by state companies in a bid to help
\nsupport the ailing rupiah.<\/p>\n
State Minister for State Enterprises Laksamana Sukardi said on
\nFriday better management of dollar purchases was necessary in
\nrelation to state firms' huge need of dollars to finance imports
\nand debt payments.<\/p>\n
\"We will formulate a foreign exchange management scheme,
\nprobably by introducing a system allowing state companies to
\npurchase dollars on a daily basis (to cover their monthly
\nneeds),\" Laksamana said.<\/p>\n
Laksamana did not elaborate further, saying the details were
\nstill being worked out.<\/p>\n
The rupiah has fallen victim to pressure stemming from both
\nexternal factors, including soaring oil price and the renewed
\nstrength of the dollar, and internal ones such as political
\nconcern and currency speculation. The rupiah has depreciated by
\ndouble digits so far this year, erasing the 7 percent gain it
\nbooked in 2003.<\/p>\n
The rupiah's shaky showing has been also attributed to the
\nhuge purchases of dollars by corporations, including state
\ncompanies. This has raised concern that state companies are
\nengaging in currency speculation.<\/p>\n
However, Laksamana said the dollar purchases were routine
\nactions by the firms to cover their expenses for imports and debt
\nrepayments.<\/p>\n
According to Laksamana, among the state-owned companies that
\nroutinely buy a huge amount of dollars are oil and gas company
\nPertamina, which requires dollars to cover crude and fuel
\nimports, and electricity firm PT PLN, which needs the greenback
\nto pay for power generated by independent power producers.<\/p>\n
\"Pertamina alone needs some US$800 million per month,\"
\nLaksamana said.<\/p>\n
Asked about the impact on state firms of rising oil prices and
\nthe dollar's increased strength, Laksamana said some companies
\nhad suffered but others had profited.<\/p>\n
Companies with incomes in U.S. dollars such as airport
\noperator Angkasa Pura and state gas distribution firm Perusahaan
\nGas Negara have booked higher incomes on the strength of the
\ndollar.<\/p>\n
Companies that have been hit by rising oil prices and the
\nstronger dollar have no alternative but to revise their financial
\nprojections, Laksamana said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/dollar-purchases-from-soes-to-be-regulated-1447893297",
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"sponsor": "Okusi Associates",
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