Only 11 Percent of Exporters` Foreign Exchange Converted Into Rupiah

Jakarta (Antara Bali) - The amount of foreign exchange from exports deposited with the domestic banks has increased but only 11 percent of it has been converted into rupiah, according to Bank Indonesia.

There is no obligation for exporters to convert their foreign exchange into rupiah, yet the government will encourage them to increase the amount of foreign exchange converted into rupiah by offering them incentives, Bank Indonesia Governor Agus Martowardojo said at a year-end meeting here on Monday.

"I am still coordinating with the Coordinating Minister for Economic Affairs. The government will issue a regulation regarding incentives for exporters to convert their foreign exchange earnings into rupiah at the end of this year," he said.

Although the amount of foreign exchange converted into rupiah is small, the level of exporters compliance with the obligation to deposit their foreign exchange in the domestic bank increased to 96 percent in 2015 from 80 percent in 2014, he said.

Agus said converting the foreign exchange into rupiah will help stabilize its exchange rate.

According to Bank Indonesia, the exporters who converted much of their foreign exchange into rupiah are those engaged in the processing industry, the oil and gas industry and the financial service industry.(WDY)