"The instruction is in line with the agreement between the state enterprises minister and Bank Indonesia governor Darmin Nasution to strengthen the rupiah`s exchange rate," the head of the ministry`s public relations and protocol division, Faisal HalJakarta (ANTARA News) - State Enterprises Minister Dahlan Iskan has instructed state oil and gas company Pertamina and state electricity firm PT PLN not to buy dollars from the money market to meet their foreign currency needs.
"The instruction is in line with the agreement between the state enterprises minister and Bank Indonesia governor Darmin Nasution to strengthen the rupiah`s exchange rate," the head of the ministry`s public relations and protocol division, Faisal Halimi said in an emailed statement quoting the minister as saying on Wednesday.
Dahlan said Pertamina has so far bought dollars from the money market through three state-owned banks, Bank Mandiri, Bank BNI and Bank BRI.
"The practice gives an impression that Pertamina buys dollars from the money market itself," he said.
Under the agreement, the three banks will no longer buy dollars at the money market for Pertamina, he said.
"It is Bank Indonesia that will prepare dollars for Pertamina through the three banks," he said.
The minister said Pertamina`s dollar purchase currently accounts for one-third of the country`s dollar needs.
The company`s dollar needs continue to increase due to a rise in the import of fuel oils.
"Controlling the use of fuel oils will ease pressure on Pertamina`s dollar needs," he said.
The rising fuel oil consumption not only sends fuel subsidies soaring but also puts pressure on the rupiah`s exchange rate, he said.
The agreement is expected to stabilize the dollar market, he said. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
