Pelindo II president director Richard Lino was quoted as saying that ceasing the use of the US currency in seaports would lead to difficulties in the firm’s transactions with foreign shipping companies and has asked the Coordinating Economic Minister Chairul Tanjung to re-evaluate the policy. The US dollar is the most predominantly used currency in shipping.
“I have asked the minister to review the policy because from a legal aspect, we should have been allowed to use dollars because these are categorized as international transactions,” Lino said. “It will definitely reduce foreign investors’ interest to invest in seaports, because this policy will increase their investment risk,” he continued.
The company said 30% to 35% of transactions at its ports are carried out in US dollars, mostly related to exports and imports, while all domestic transactions are conducted in rupiah.
Chairul had earlier said that his office would give Pelindo II three months to start charging in rupiah for services instead of the US currency. He added that a lot of seaports remained unaware of the 2011 Currency Law, which stipulates that all domestic transactions should be carried out in rupiah, due to a lack of information dissemination.
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