Trade Maintenance Facility (TMF)

Trade Maintenance Facility (TMF)

I would like to comment on one news story in The Jakarta Post
about an importer fearing that the government will lift its
guarantee (in stages). This importer said that the scrapping of
this guarantee will affect import transactions. It must be noted
that the government does not directly guarantee import
transactions as this guarantee is provided by Bank Indonesia
(with a counter guarantee from the government). This import
guarantee scheme is provided by Bank Indonesia and is called a
Trade Maintenance Facility (TMF).

It must also be noted that this TMF scheme has been scrapped
for over one year without stirring turbulence in the import-
export market. I believe that the revocation of the guarantee for
off-balance sheet transactions will not adversely affect
importers/exporters. Most important for Indonesia, now, is
political stability and how the government communicates the
gradual abolition of this guarantee scheme to the press and
community.

MIRZA ADITYASWARA

Jakarta