Indonesian central bank bars 28 money changers
- Published: 16/11/2012 at 02:20 PM
- Online news:
Bank Indonesia has barred 28 non-bank currency exchanges from operating because they failed to meet the minimum capital requirements.
Difi A. Johansyah, the central bank spokesperson, told the Jakarta Globe that all non-bank money changers in the country are required to have Rp 250 million ($26,000) in capital as from Sept 5, but these money changers did not meet the deadline.
Idrus Muhamad, general secretary of the Money Changer Association in Jakarta said that money changers are struggling to compete with commercial banks in the currency exchange market.
As a result, most of the companies whose licenses were revoked are already no longer in business, according to Muhamad, who also blames black market money changers.
There are many illegal money changers around, making competition unhealthy. Meanwhile, banks also target this market and they are supposed to only serve in the corporate segment, Idrus said.
Instead, he advises the authorities to go after illegal money changers, otherwise more legitimate exchangers will go out of business.
Official data indicates that two million tourists entered Indonesia between July and September, spending more than $2.1 billion.