JAKARTA: Bank Indonesia on Friday eased rules for exporters and sought to make it easier for them to retain foreign funds here in a bid to help stabilise the rupiah.
The moves are aimed at ensuring the supply of foreign exchange - mainly United States dollars - is adequate here, and come as a flow of foreign funds from emerging markets to the US saw the currency go from 10,300 rupiah to the United States dollar to almost 11,000 rupiah to the dollar over the past week.
The central bank relax requirements for exporters to buy foreign exchange in Indonesia, Mr Hendar, a Bank Indonesia deputy governor, told a media briefing on Friday, adding that this would hopefully reduce worries about placing the funds here.
"Right now, certain exporters tend to hold on to their foreign exchange holdings overseas," Mr Hendar added. "We will make it easier for them to buy foreign exchange here, so by the same token, they would not have doubt about placing foreign exchange here."
The central bank will also offer foreign exchange time deposits with a wider time-frame, ranging from 1 day to 12 months. Currently, such facilities only cover the tenors of 7 days, 14 days, and 30 days.
"We want to be more accommodative in absorbing anyone's need to place their foreign exchange here," Bank Indonesia spokesman Difi Johansyah told reporters.
The rupiah has depreciated 10.9 per cent against the US dollar since December 2012, according to central bank data.
"We are convinced we are safe. Such depreciation is in line with the development globally," Mr Agus told reporters.