Indonesian government will not change forex ownership system

Indonesian government will not change forex ownership system

(ANTARA/Rosa Pangabean)

"The domestic demand is also high."
Jakarta (ANTARA News) - The Indonesian government will not change the foreign exchange ownership system, which is still based on Law No. 24 of 1999, despite the recent weakening of the rupiah due to negative foreign sentiment.

The acting chief of the Fiscal Policy Office, Bambang PS Brodjonegoro, was quoted on the official website of the Ministry of Finance on Tuesday as saying that the uncertainty caused by the current conditions will encourage many people to purchase US dollars as a safe asset.

"Moreover, the domestic demand is also high, to be used for import requirements and to pay out dividends. Unfortunately, we have to pay a lot of dividends this May, so the pressure builds up at the same time," he said.

Although the pressure on the rupiah continues, the government will not restrict foreign ownership. This decision was taken to prevent the occurrence of negative sentiment in the market.

"Do not let the market react negatively, because we emphasise that there are no exchange controls," he stressed.