State banks to facilitate forex transaction in oil, gas industry

Three state-controlled bank including Bank Mandiri, BNI, and BRI have agreed to facilitate foreign exchange transaction between oil and gas companies and their vendors.

Upstream authority SKK Migas said in a statement that SKK Migas Chairman Amien Sunaryadi signed on Thursday MoU with the president directors of the three banks. Amien said that the services to be provided by the three banks are expected to help minimize potential cost from the conversion of US dollar to rupiah, and vice versa.

Bank Indonesia, the central bank, issued last year a regulation requiring the use of the rupiah in domestic transaction. However, the central bank in February of this year agreed to exclude goods and services transaction in the upstream industry from the requirement. Contracts between the oil and gas contractors and their vendors can be made in US dollars or other foreign currencies, but the payment must be made in rupiah.

Editing by Reiner Simanjuntak