Kadin wants exporters to sell dollars to BI
Kadin wants exporters to sell dollars to BI
JAKARTA (JP): The Indonesian Chamber of Commerce and Industry
(Kadin) urged the government yesterday to require all exporters
to sell their export revenue to Bank Indonesia in a bid to
bolster the country's foreign exchange reserves and the rupiah.
Kadin chairman Aburizal Bakrie told President B.J. Habibie at
the Bina Graha presidential office that the central bank could
easily collect about US$50 billion year if the plan was
implemented.
Aburizal said his idea was fully supported by major exporters
because, under the scheme, they would be entitled to buy hard
currency at the same rate from Bank Indonesia.
"This way, we still maintain our free foreign exchange regime.
And we believe it must be maintained," Aburizal said after
meeting Habibie.
Habibie, according to Aburizal, gave a cautious reaction to
his proposal and asked him to market his idea further.
"The President said it was better to conduct a poll, and if
necessary to hold a seminar on the idea," Aburizal said.
When asked to identify exporters who supported his idea,
Aburizal only mentioned two companies, the giant textile
manufacturers Texmaco Group and Indorama Group.
Aburizal, chairman of the Bakrie Group, said it was high time
the government adopted the plan because it was the best way to
strengthen the country's foreign exchange reserves.
"Although our exchange reserves total about $14 billion,
slightly above the International Monetary Fund (IMF) requirement,
they're still at a minimum level," he noted.
"Our monthly exports are worth about $3.5 billion to $4.5
billion. Therefore in a year, we can put together some $54
billion into the system," he remarked.
Aburizal's call follows a similar request to the president
from the Indonesian Vegetable Oils and Fats Association last
month.
The association's vice chairman, Tarmidzi Rangkuti, asked
Habibie to overturn Government Regulation No. 1/1992 that gives
exporters freedom to decide where they convert their dollars.
Rangkuti, a former Bank Indonesia official, said the 1982
foreign exchange regulation violated Law No. 32/1964, which
requires all exporters to sell their export revenues to the
central bank, and the 1945 Constitution, which states that all
proceeds from the country's natural resources should be used for
the benefit of the Indonesian people.
The government has repeatedly stated its commitment to a free
foreign exchange regime.
After the Economic and Finance Resilience Council's meeting
chaired by Habibie last week, Bank Indonesia Governor Sjahril
Sabirin reiterated that the central bank would maintain the
current free foreign exchange arrangements, arguing that it
served the country best in the long term.
"We want to have high-quality foreign exchange management and
a high quality rupiah. And we can achieve that only by
maintaining our free foreign exchange regime," he said. (prb)