The Indonesia Financial Services Authority, or OJK, to Loosen Regulation on Foreign Currency Accounts for Non-Nationals. OJK says it will issue a new regulation which will make it easier for foreigners to bank in foreign currencies in Indonesia — as part of attempts to curb the plunge of rupiah against the US dollar
The chairman of the OJK’s board of commissioners, Muliaman D. Hadad, on Monday said the planned regulation was expected to increase Indonesia’s foreign exchange reserves.
He said the OJK was particularly targeting frequent visitors to the country, who make up 20 percent of the average 12 million foreigners visiting Indonesia every year.
“Some of those foreign visitors don’t come to Indonesia only once, but they may come back here six or seven times a year because they have some business or family purposes to tend to,” Muliaman said on the sidelines of a meeting in Nusa Dua, Bali.
“[The frequent visitors] make up 20 percent of total annual visits,” he added.
The OJK has calculated, Muliaman said, that each of those 20 percent of visitors brings in an average of $10,000 into the country every year.
If they are allowed to easily deposit their foreign currencies in bank accounts here, Indonesia will have an additional $24 billion in its dollar reserves, the OJK has estimated.
Muliaman said he was optimistic the planned regulation — the draft of which is expected to be completed within two to three weeks — would work, citing successful experiences of several other countries.
“I reckon the [new] regulation can be issued in the form of a circular. We also will make sure we won’t break international regulations, as this has been adopted by many other countries,” he added, according to Indonesian news portal liputan6.com.
Muliaman said under the planned regulation, a foreigner would be able to have a foreign currency account just by showing a passport and a living permit in Indonesia if they intend to deposit between $2,000 and $50,000 in their account.
There will be more administrative requirements for those seeking to deposit more than $50,000 — such as a reference from a bank in their country of origin, their spouse’s identity and a copy of their residential contract.
Fuente: jakartaglobe.com / Foto: jakartaglobe.com / Selección y adaptación: JLJM