Commodities

Indonesia c.bank to make resource exporters convert some earnings to rupiah

Credit: REUTERS/Iqro Rinaldi

Indonesia's central bank plans to issue a new regulation requiring that large exporters of natural resources convert some of their foreign exchange earnings into rupiah, Governor Perry Warjiyo told a parliamentary hearing on Monday.

JAKARTA, Aug 24 (Reuters) - Indonesia's central bank plans to issue a new regulation requiring that large exporters of natural resources convert some of their foreign exchange earnings into rupiah, Governor Perry Warjiyo told a parliamentary hearing on Monday.

Bank Indonesia plans to bring this in for exporters of natural resources whose 2019 shipments exceeded $300 million in value and ensure they report their compliance to the central bank, Warjiyo said, adding that "this was not a capital control". Exporters of natural resources are already required to retain their earnings in a special account under existing rules.

Warjiyo said there would be a threshold for the amount the exporters kept in their accounts and anything above this must be converted to rupiah. The effective date for the new rules would depend on the stability of the rupiah exchange rate, he said.

(Reporting by Gayatri Suroyo and Maikel Jefriando Editing by Ed Davies)

((gayatri.suroyo@thomsonreuters.com; +622129927609; Reuters Messaging: gayatri.suroyo.thomsonreuters.com@reuters.net))

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