"We would not conduct abnormal things. There will never be things like capital control," BI Governor Agus Martowardojo saidJakarta (ANTARA News) - Bank Indonesia (BI) would not conduct capital control in its efforts to increase its foreign exchange reserves that have continued to be eroded, said BI Governor Agus Martowardojo.
"We would not conduct abnormal things. There will never be things like capital control," he said when met for some questions at BI compounds.
Agus denied that law number 24 of 2009 on foreign exchange traffic and system of exchange value which has been considered too free and therefore has hurt the economy would be revised.
"No one would revise the law on foreign exchange income from exports and there has been no idea of imposing capital control," he said.
Agus said foreign exchange income from exports (DHE) was not optimal because exporters worried about the country`s trade deficit and therefore would not park their foreign exchange income at domestic banks.
He said the country`s foreign exchange reserves remained safe, adding that reduction in the foreign exchange reserves was a common thing due to capital outflows.
He said the amount of the country`s foreign exchange reserves was now better than it was during a crisis in 2008.
He said "BI now responds with policies to maintain the liquidity and this will make conditions better. However we must not look at short-term goals but also long-term."
Agus appreciated the government`s recent package of economic policies whose implementation has now been more concrete and hoped to give a positive impact on the trade balance.
"The government`s response with regard to bio-diesel supply for diesel fuel is a good initiative and I have seen it has been implemented and will have a good impact on Indonesia`s trade balance," he said. (*)
Editor: Heru Purwanto
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