JAKARTA, APBI-ICMA: KONTAN.CO.ID Thursday, January 24, 2019 reported that Through Government Regulation Number 1/2019, the Government officially adopted the rules of Foreign exchange exports on natural resources . Not only that, the Government will also impose sanctions on exporters who violate these rules.
If exporters do not enter Foreign exchange exports into the Indonesian financial system, they will receive administrative sanctions such as fines, revocation of export licenses, and revocation of business licenses.
Regarding this matter, the Executive Director of the Indonesian Coal Mining Association, Hendra Sinadia, said that basically the regulation had been in place since 2011 and several large exporters had implemented the regulation.
However, Hendra said, because there had been no sanctions, there were still companies that kept Foreign exchange exports in foreign banks and converted funds were still small. He estimates that this rule will become an obstacle for small-scale companies. "There are fears that small-scale companies cannot fulfill this rule," he said on Thursday (1/24).
According to Hendra, this regulation will certainly burden companies that have signed financing agreements where Foreign exchange exports is deposited with outside banks. "With this regulation, inevitably they have to negotiate with buyers or offtakers who already have financial agreements," he said.
In addition, he explained that the burdensome thing about this rule is that the majority of the company's production components use dollars. In the midst of fluctuations in the rupiah exchange rate against the dollar, it will be more burdensome for them.
Moreover, continued Hendra, in the last few months there has been a downward trend in the reference coal price. "This rule certainly adds to the difficulties when the price conditions decline due to weaker demand from China, this also has an effect," he said.