VIVAnews - Bank Indonesia (BI) released new policy packages consisting of six clauses. "The policy packages are not a part of foreign exchange control. They are still within the corridor of free foreign exchange control that is consistently adapted in Indonesia," said BI acting governor Darmin Nasution today, June 16.
The six new BI provisions include the addition in overnight inter-bank spot market interest rate, which will be implemented by June 17, 2010, the implementation of minimum one-month holding period of BI certificate (July 7), and the increase in non-securities monetary instrument in the form of term deposit (July 7).
Three other clauses include the improve in net foreign exchange balance, issuance of nine- and 12-month BI certificate, and implementation of three-party repurchase mechanism of state bonds.
As for BI's clauses in the ownership of BI certificates, Darmin explained that the owners of BI certificates are obliged to hold the certificates by at least one month (28 days).
During the period, the owners of BI certificates are restricted to release the ownership of BI certificates.
Darmin said the policies will not be applied against foreign investment to acquire BI's investment instruments. "We're not trying to prevent foreign investors from investing. We're not doing capital control," he said.
--
Translated by: Bonardo Maulana W
