Association claims to convert 40 percent of export earnings into rupiah

Jakarta (ANTARA News) – The Indonesian Exporters Association (GPEI) has claimed that exporters have converted 40 percent of export earnings (DHE) into rupiah.

GPEI Chairman Benny Soetrisno said here on Wednesday that some exporters are yet to convert the DHE into rupiah as they would need foreign currency for import of raw materials and capital for their business.

“Some 40 percent of the DHE have been converted into rupiah. We convert the export earnings because we need them to pay workers and other domestic needs,” he noted.

In 2017, Indonesias export had reached US$168.73 billion. Of the total, 90 percent of the export earnings were deposited in domestic banks.

Previously, the Indonesian Central Bank (BI) stated that out of the total 90 percent DHE returned to the country, only 15 percent of the export earnings have been converted into rupiah.

According to Soetrisno, exporters have been waiting for the governments initiative to encourage DHEs return to Indonesia and convert it into rupiah.

However, he saw that some policies have become disincentives for exporters, including the high cost for foreign exchange swap.

The government has tried to draw foreign exchange from export earnings into the country and convert it into rupiah, in a bid to strengthen its reserves and narrow the current account deficit.

Indonesias foreign exchange reserves have continued to drop since January, as it has been used for market intervention to stabilize the rupiah.

Source: ANTARA News

Association claims to convert 40 percent of export earnings into rupiah

Jakarta (ANTARA News) – The Indonesian Exporters Association (GPEI) has claimed that exporters have converted 40 percent of export earnings (DHE) into rupiah.

GPEI Chairman Benny Soetrisno said here on Wednesday that some exporters are yet to convert the DHE into rupiah as they would need foreign currency for import of raw materials and capital for their business.

“Some 40 percent of the DHE have been converted into rupiah. We convert the export earnings because we need them to pay workers and other domestic needs,” he noted.

In 2017, Indonesias export had reached US$168.73 billion. Of the total, 90 percent of the export earnings were deposited in domestic banks.

Previously, the Indonesian Central Bank (BI) stated that out of the total 90 percent DHE returned to the country, only 15 percent of the export earnings have been converted into rupiah.

According to Soetrisno, exporters have been waiting for the governments initiative to encourage DHEs return to Indonesia and convert it into rupiah.

However, he saw that some policies have become disincentives for exporters, including the high cost for foreign exchange swap.

The government has tried to draw foreign exchange from export earnings into the country and convert it into rupiah, in a bid to strengthen its reserves and narrow the current account deficit.

Indonesias foreign exchange reserves have continued to drop since January, as it has been used for market intervention to stabilize the rupiah.

Source: ANTARA News