Bank Indonesia (BI) has introduced a new rule, which came into effect on December 5, enabling exporters to receive payment faster, in an attempt to reduce the impact of the global credit crunch, Reuters reported.
”Exporters can have liquidity both in foreign exchange and in rupiah, thus reducing pressure on the rupiah exchange rate," BI Governor Boediono said in a statement, adding that this should be positive for the economy.
The new regulation is eligible for six foreign currencies, the US dollar, yen, pound sterling, euro, Australian dollar and Swiss franc.
Under the new rule, commercial banks are allowed to sell export receivables, the monies owed to an exporter by the importer, to the central bank, which will in turn extend the proceeds to the original exporter.
"Exporters, through the banks, will receive exports proceeds faster to meet working capital needs rather than having to wait for the payment date from overseas buyers," BI said on its website.
This should reduce the time it takes for an exporter to receive payment, which typically can be as long as six months, and may help to reduce demand for foreign currencies, reducing the selling pressure on the rupiah currency.
Several companies have already complained about the difficulty of obtaining financing, while monthly exports have dropped significantly because of the crisis.
A BI official said a similar regulation was put into effect during the 1997-1998 Asian financial crisis.