Bank Indonesia Achieves International Awards Regarding Foreign Exchange Management

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia is said to have won an award as the best foreign exchange management institution (Best Asset Owner) in Southeast Asia at the 2022 Asian Investor Institutional Excellence Award.

Head of the BI Communication Department Erwin Haryono said this award was given by the Asian Investor who appreciated BI's achievements.

"Bank Indonesia is considered successful in developing operational aspects, innovation in asset management, and the ability to adapt to the development of financial and economic markets," he said in a written statement on Friday, February 10.

According to Erwin, the achievements made by the central bank cannot be separated from the various strategic policies taken.

"This also includes a foreign exchange reserve transformation that is carried out consistently, innovatively and synergically," he said.

For information, Asian Investor is part of the Haymarket Limited, the largest publisher group in the UK. The awards event itself is titled the 9th Institutional Excellence Award in 2022.

Awarding is a form of appreciation for the performance and practice of managing the foreign exchange of institutions in Asia Pacific which continues to progress to strive to become better foreign exchange managers.

To note, BI has implemented an instrument of monetary operation term deposit (TD) for the foreign exchange of export returns (DHE) as an instrument for placing foreign exchange by exporters through banks to Bank Indonesia.

In this way, the central bank will provide fees to national banks that have managed to collect deposits in dollars from exporters. The fee is given if banks immediately forward their dollar deposits to Bank Indonesia.

In addition, BI also made a policy that this dollar deposit was not considered a third party fund (DPK) so that banks did not have obligations in terms of minimum mandatory demand deposits (GWM).

Meanwhile, BI's way of attracting Indonesian exporters to place their dollars domestically is through setting competitive interest rates according to market mechanisms.