Bank Indonesia (BI) reiterated that it would not control foreign exchange flows, especially to foreign investors. According to BI Governor Perry Warjiyo, the central bank is currently only managing foreign exchange for the Indonesian population. This is also in line with the Regulatory Substitute Law (Perppu) No. 1 of 2020.
Even so, Perry also stressed that until now the central bank had no plans to require exporters to convert dollars to rupiah. And yet this is an anticipatory step if adverse conditions due to Covid-19 occur. We reiterate once again, and there are no plans to require the conversion of dollars into rupiah. Conversion is only in terms of if necessary, explained Perry, Thursday (2/4) via video conference.
He also hoped that all of the worst-case scenarios would not occur, so that later what had been determined in Perppu was not urgent to run.
The analogy is, before heavy rain occurs, we have an umbrella available. But that does not mean it will be used. But it is not possible to wait slowly, just looking for an umbrella? This is an analogy that we put into managing foreign exchange traffic.
Furthermore, he also showed his appreciation for business actors such as exporters who have entered into the export proceeds (DHE) into Indonesia. According to BI’s records, up to now, more than 80% of exporters have submitted their DHE results.
It is just that there are still many DHE in the form of foreign exchange (foreign exchange) and have not been converted to rupiah.
Henceforth, although not yet required, Perry will continue to invite the corporate world and exporters to cooperate in supplying its DHE dollars to the rupiah. This is also to maintain the stability of the rupiah exchange rate.
According to him, there is no need to worry about selling dollars now, because the central bank has also provided other interventions, one of which is Domestic Non-Delivery Forward (DNDF).
Explained, this can be done to hedge or hedge so that there is no need to worry about selling dollars now. This also can protect the exchange rate risk.