Indonesia is another country where authorities banned domestic transactions using any foreign currency, including the US dollar. The order has already come into force. This decision of the Central Bank of Indonesia was carefully considered. This spring, the regulator told people about coming changes. It also warned that all transactions, including payment of wages, payment for flights, accommodation, and rental property, will be made in the national currency.
“There are still a lot of transactions using foreign exchange and that has added to the pressure on our exchange rate. We don’t want a dollarized economy so we need to uphold the sovereignty of the rupiah”, said head of Bank of Indonesia Eco Yulianto.
However, loud statements on a refusal from the US dollar did not have any outcome. In the official version of the document there are some exceptions, including payment of wages to foreign employees in dollars by international companies. Companies investing in energy facilities and infrastructure are also exempted by the directive.
