Indonesia won't revise law on free capital movement, floating exchange rate: govt official

Indonesia will not change a law allowing capital to flow freely and the exchange rate to float in the near future, a government official said. 

PHOTO: ST FILE

NOV 18, 20151:48 PM

[JAKARTA] Indonesia will not change a law allowing capital to flow freely and the exchange rate to float in the near future, a government official said.

Indonesia adopted free capital flows and a floating exchange rate after the Asian financial crisis of the late 1990s. "We have no plan in the short run to change the law. Our current focus is to attract exporters to bring offshore earnings back home," Edi Prio Pambudi, assistant deputy minister at Coordinating Minister of Economics overseeing monetary and financial, told Reuters on Wednesday.

The comment comes a day after Indonesia's Vice President Jusuf Kalla made a remark suggesting that Southeast Asia's largest economy may impose some control over capital flows.

REUTERS