BI Strengthens Rupiah Demand on RI-Papua New Guinea Border

BI Perkuat Penggunaan Rupiah di Perbatasan RI-Papua Nugini 

JAKARTA - Bank Indonesia (BI) continues to make efforts to make rupiah currency the only legal means of payment in the country, including on the Indonesian border, Papua New Guinea or Papua New Guinea.
BI Deputy Governor Sugeng said the central bank continued to encourage the use of rupiah currency in transactions, among others by socializing the use of rupiah money, socialization of the characteristics and authenticity of money, and encourage the development of non-bank foreign exchange business (KUPVA BB) licensed border areas.
"Currently, the usage of foreign exchange service by PT Bank Rakyat Indonesia Tbk (BRI) at Cross Country Border Post (PBLN) has been running since August 11, 2017, but has not been optimally utilized by border crossers They still choose to transact using Kina, "Sugeng said in a release in Jakarta, Friday (13/10/2017).
Efforts to socialize the rupiah and encourage the development of KUPVA BB done in order to run the Currency Law concerning Liability of Rupiah Usage in NKRI Region. Because, in the border area Skouw, there are still transactions using currency Papua New Guinea Kina.
"Immigrants and traders in the market prefer to use Kina in transactions, due to the convenience factor, business factors that are gains from the exchange rate and background factors of low educational background, so it is still reluctant to recognize the rupiah with its denomination," he said.
Sugeng added, there are three main dimensions that underlie the implementation of the obligation to use rupiah money. First, the legal dimension. Second, the dimension of nationality for the rupiah to host in their own country. Finally, the economic or business dimension.
One of the efforts undertaken by Bank Indonesia (BI) is to provide rupiah in the foremost, outer, and remote areas. Therefore, since July 2017, BI provides rupiah from the forefront through the provision of Automated Teller Machine (ATM) and KUPVA service in PBLN Skouw.
"Hopefully in a location that will be more strategic number of border crossers who exchange more money increased," he added.



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