One of the monetary indicators considered by economists and analysts in evaluating the economic strength and stability of a nation was the position of forex reserves. The highest the forex reserves, the better and stronger economy of the related nation and vice cersa.
The institution that played the role and had the responsibility to jack up forex reserves was Bank Indonesia because of its strategic role as Central Bank whose main task was to create monetary stability.
Recently BI was seen busy with increasing forex reserves trough compilation of export-based forex (DHE). In this case BI called out to all banks to have their commitment to report forex traffic (LLD).
So far the development had been satisfactory where DHE being placed in domestic banks came to 90% of Indonesia’s total export still November 2012. This was supported by obedience of exporters, banks and on bank financial institutions in reporting export based forex. Previously exporters of the commodity sectors were reluctant to place or report their export-yield forex.
Up to November there ware 120 banks and 2,419 non-bank institutions who reported their forex traffic while 11 thousand exporters reported the export-yield forex. This had made data of forex traffic better and accurate. The reports by banks and non bank institutions were based on need for accurate and detailed information to support formulation of monetary policy as well as to set up statistics of Indonesia’s Balance of Payment (SNPI) and better Indonesia’s International Investment Position (PIII).
Furthermore, banks had been requested to improve this LLD report, toward creating an integrated LLD reporting based on comprehensive, accurate, and fast data. In fact LLD reporting had been running since year 2000 for banks, 2001 for non-bank bodies and 2002 for non financial institutions.
By regulation, LLD reporting was a message in Law no 24 1999 on forex traffic and exchange rate system. The Central Bank was expecting bank executives and companies were willing to support the reporting system. Even beside LLD bank Indonesia demanded also DHE report.
Admittedly banks in Indonesian were being more aware about reporting procedures so it was an obligation with underlying rules. The reporting was reporting to forex traffic (LLD) and Export Yield Forex (DHE) The Law stated that BI had the authority to ask for information and data on LLD traffic activities carried out by all Indonesian citizens.
To convey appreciation to all LLD and DHE reporters, BU had given awards to the best LLD reporting banks, and non bank LLD reporters for 2012; they were banks who made DHE and LLD reporting the regular way, punctually and accurately to BI.
The list of Award receivers for the best LLD reporting form non bank institutions included: PT Indah Kiat Pulp & Paper Tbk; PT Indo Bharat Rayon; PT Vayatour; PT Asuransi Jiwa Manulife Indonesia; PT Lippo Karawaci Tbk; PLN; PT Lion Mentari Airlines; PT Mistui Indonesia; PT Pertamina; and PT. Smart Tbk.
Furthermore the list of Award Receivers for the best LLD reporting for bank category were PT Bank Central Asia Tbk’ the Bank of Tokyo Mitsubishi Ltd; Citibank N.A. Indonesia branch; Deutsche Bank AG; and PT Bank Mizuho Indonesia.
The list of award receivers for DHE reporting based on their support in the Execution of DHE Receiving of bank category included PT Bank Central Asia Tbk; Citibank N.A. Indonesia branch; PT Bank Negara Indonesia Tbk; PT Bank Sumitomo Mitsui Indonesia; the Hong Kong and Shanghai Banking Co. Ltd, Indonesia.
List of award receivers for Reporting based on The principles of obedience to the Rules on DHE of exporter category, i.e. PT Adaro Indonesia; PT Freeport Indonesia; PT Bilitin Makmur Lestari; PT Musim Mas; PT Aneka Bumi Pratama; PT KMK Global Sports; PT Seamless Pipe Indonesia Jaya; PT Kaltim Pacific Almoniac; PT Toyota Manufacturing Motor Indonesia; and PT Sari Mas Permai.
If it was true that the amount of DHE received through domestic forex banks continued to increase till close to 90% of the total national export value, then of should be most heartening. There were only few banks and companies who had not made their LLD and DHE reports. With the increased discipline of reporters, the position of national forex reserves were better known and the information should be useful not just for financing import but also to create a positive image of Indonesia’s fundamental economic in the eyes of foreign investors.
Business News - December 12, 2012