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