INDONESIA-REPATRIATING EXPORT EARNINGS
Tanjung Priok port, Jakarta, 2012. Tempo in Wikimedia Commons
The Jakarta Post-Nov 22
The government finally issued last week a ruling requiring natural-resource based companies in Indonesia to repatriate export earnings and put them into the domestic financial system with the main objective of helping the domestic foreign exchange (forex) market cope with highly volatile capital flows.
The regulation, which has been on and off since 2011, is part of the 16th economic reform package (the 17th according to The Jakarta Post file). The rule may only be fully effective early next year, given the time needed to design its implementation directives to minimize loopholes and prevent excessive red tape.
First published in: The Jakarta Post