Indonesian Business Objects to New Export Foreign Exchange Rules: Impact on Cash Flow
KONTAN.CO.ID - The obligation to retain foreign exchange from natural resource exports in the domestic financial system has sparked opposition from business players. Business players operating in the natural resource sector collectively reject the rule, citing that it could disrupt the company's cash flow when commodity prices decline.
According to the businesspeople, foreign exchange from exports is usually immediately utilized to import raw materials and cover other operational needs. The requirement to retain funds for three months could disrupt these financing needs and hinder business performance.
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