Bank Indonesia Allows Money Changer Businesses in Border Areas

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  • TEMPO.CO, Jakarta - Bank Indonesia has allowed a money changer business owner in Skouw, Jayapura, Papua, which is directly bordering with Papua New Guinea to conduct foreign exchange transactions.

    Joko Supratikto, head of the representative office of Bank Indonesia in Papua said yesterday that the central bank has issued a permit for a money changer to conduct foreign exchange transactions in the Indonesia-Papua New Guinea border.

    “There’s a merchant who has run his business for a long time, and we have issued a permit for him because he has the capability to conduct foreign exchange transactions,” Joko said on Friday, May 12.

    He explained that his office will add more money changers in Skow, since Papua New Guineans no longer use Kina or the Papua New Guinean currency.

    Joko added that Bank Rakyat Indonesia (BRI) has opened money changer spots in Skow integrated cross-border post (PLBN). “In addition to opening money changers, BRI will also send mobile money changers regularly to the border.”

    Joko asserted under Bank Indonesia Circular Letter (SEBI) No. 17/11/DKSP on the requirement to use Rupiah in Indonesian territories issued on June 1, 2015, merchants and buyers are no longer allowed to use Kina in Skow Market. However, he realized that the enforcement of the regulation would take time and need continuous disseminations.

    “The law stipulates that using foreign currencies in Indonesia is a violation. So, a legal action can be enforced against the violation. But we won’t do that. We’ll enforce the regulation slowly,” Joko said.