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House Makes 7 Requests to Financial Regulators

26 March 2015 13:26 WIB

Fadel Muhammad. TEMPO/Wisnu Agung Prasetyo

TEMPO.CO, Jakarta – The House of Representatives Commission XI had a meeting with the Finance Minister, Bank Indonesia (BI), the Financial Services Authority (OJK), and the Deposit Insurance Agency (LPS) regarding rupiah exchange rate on Wednesday, March 25.

The four-hour meeting came up with seven joint-conclusions. The first is that the government and BI will pay special attention on the rupiah's development, as it is "influential to the economic conditions of the people of Indonesia," the commission's chairman Fadel Muhammad said.

The commission also asked the government to crunch the current account deficit in order to improve economic structures. The third conclusion is a request that the government mandate the use of L/C in the export of natural resources like palm oil, coal, mining goods, and oil and gas.

The fourth request is addressed to the government, OJK, and BI, to implement Law No.7/2011 that requires all sales and purchases done domestically to be denominated in rupiah.

"There are still many government agencies and state enterprises that transact in foreign currencies. We are asking the government to instruct them to start using the rupiah, and give penalties to those who disobey the rule," Fadel asserted.

The commission is also asking the government to prepare policies that will encourage the growths of manufactured exports and imports, in a bid to reduce reliance on imported raw and auxiliary materials..

Sixth, the Commission asked the government to implement special tax measures—such as increasing tax compliance and expanding tax bases—without disturbing the business climate.

"Finally, the commission is asking the OJK, BI, and the government to create an inclusive financial system by preparing institutional human resources and setting regulations and policies that will help drive the wheels of economic growth, especially that of SMEs," he said.

BISNIS INDONESIA | RR



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