Indonesian company PT Adaro Energy Tbk and its four partner companies have agreed to boost transactions in rupiah to help maintain a balance between the US dollar supply and demand.
"Our four partners and we have agreed that payments, which were earlier made in US dollars, are now done in rupiah. In less than a year, we made payments amounting to US$1.7 billion, or around Rp25 trillion, to key partners," Adaro Energy`s President Director Garibaldi Thohir stated here Wednesday.
The declaration is an initiative of Adaro to play an active role in using domestic export foreign exchange funds in the form of rupiah.
With the signing of the declaration, payments by PT Adaro Energy Tbk to several companies -- PT Pertamina, PT Saptaindra Sejati, PT Pama Persada, and PT Bukit Makmur Mandiri Utama -- will be made in rupiah.
"Royalty is a tax in rupiah, the value being approximately $600-700 million. To Pertamina, it is around $400-500 million and to the three other companies is around $600-700 million," Thohir noted.
He pointed out that Adaro Group`s payment to its partners amounted to $1.9 billion-$2 billion in total.
The declaration was signed by Thohir, President Director of PT Pamapersada Nusantara Frans Kesuma, and Director of PT Saptaindra Sejati Asep Kusmana.
The signing was witnessed by Minister of Finance Sri Mulyani, PT Adaro Energy`s President Commissioner Edwin Soeryadjaya, and PT Adaro Energy`s Vice President Commissioner Theodore Permadi Rachmat.
Mulyani welcomed the initiative by Adaro and its contractors to help increase the use of rupiah in Indonesia.
"Consistent conversion to the rupiah according to regulations is expected to create a balance between dollar supply and demand," she stated.
Editing by Libertina W Ambari
Source: Calvin Basuki/ANTARA News
03 October 2018