Private debt does not affect IDR exchange

REPUBLIKA.CO.ID, JAKARTA - The total of private debt will not affect the IDR exchange as Bank Indonesia (BI) prepares the supply of USD to balance the amount of the debt. "I think the amount of private debt is not significant," the Deputy Governor of BI, Muliaman D Hadad, said on Thursday, but he did not explain further detail.

Yet, he said the debt exposure, especially from European countries, would not affect the IDR exchange because the number was insignificant in balance-sheet exposure of European and US banks. The supply of USD will also increase along with Foreign Exchange Proceeds from Exports (DHE). Government policy allows the DHE to be returned to Indonesia to enhance the supply of foreign exchange and exchange rate.

The Business Banking Director of BNI, Krishna Suparto, admitted that the company did not take much loan from abroad. "It is only 20 million USD. Besides, BNI does not take the loan from European countries," he said.

The Executive Vice President Head of Treasury BNI, Bimo Notowodogdo, added that the banking forex liquidity was still safe even though the trade was hampered. But, the IDR exchange, he continued, would be stable as it was supported by BI's intervention.

Meanwhile, according to BI Regulation No 13/20/PBI/2011 all Foreign Exchange Proceeds from Exports must be received and deposited by the exporter in a foreign exchange bank not longer than 90 days after the date of Export Declaration Form (PEB). For PEB issued in 2012, the exporters must receive Foreign Exchange Proceeds from Exports not longer six months after the date of Export Declaration Form.