BI Implement Five New Policies to Maintain Economic Stability

Jakarta (Antara) - Bank Indonesia (BI) has introduced five new policies to maintain the country's macroeconomic stability and ensure sustainable economic growth. "These new policies will help improve the effectiveness of the policy package we approved at the meeting of the board of governors on August 15 this year, which was aimed at keeping inflation in check, managing the balance of payment more sustainably, and improving the stability of financial system," Bank Indonesia Governor Agus DW Martowardojo said at a press conference here on Friday. He revealed that the overall objective of the five new policies was to bring in more foreign exchange. Martowardojo noted that the first policy involved extending the period of term deposits in foreign currency from seven, 14 and 30 days to 1-12 months. "This policy was designed to widen the range of tenures in order to encourage commercial banks to place their foreign exchange in Bank Indonesia," he explained. The second policy involves relaxing the conditions for purchase of foreign currencies by exporters, Martowardojo said, adding that the policy was aimed at allowing exporters to buy foreign currencies by providing underlying documents on the sale of foreign currencies. "The third policy involves more flexible provisions, through which banks' foreing exchange transactions will be treated as pass-on transactions, with the objective of boosting derivative transactions," he explained. (*)