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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Ady T.D. Achmad
As stipulated in Bank Indonesia (BI) Regulation No. 31/3/PBI/2015 (2015 BI Regulation), every transaction taking place on Indonesian soil must now utilize rupiah, and this includes the payment of salaries to both local and foreign workers. This requirement has now been reaffirmed by Indonesia’s Minister of Employment, M. Hanif Dakhiri.
“According to Bank Indonesia, the new regulation, as it pertains to the payment of salaries, requires that rupiah be used, and we should all be complying with this directive,” explained Minister Dakhiri during a statement made in Jakarta last Tuesday.
In a recent press release, the Ministry of Employment revealed that the 2015 BI Regulation aims to reinforce the sovereignty of the rupiah on Indonesian soil, as well as to ensure the stability of its exchange rate.
In addition, Law No. 7 of 2011 on Currency (Currency Law) mandates criminal sanctions for parties refusing to use rupiah within Indonesian territory in the form of a one-year maximum jail term, as well as a maximum fine of IDR 200 million. Furthermore, any violations as regards this mandatory use of rupiah in non-cash transactions shall be subject to administrative sanctions in form of a written notice setting out payment obligations, as well as a prohibition on payment-traffic activities.
Commenting on the matter, the Secretary General of OPSI (Organisasi Pekerja Seluruh Indonesia), Timboel Siregar, expressed his hope that the government would stand firm as regards the implementation of this law. However, Mr. Siregar also pointed that Article 21 (2) of the Draft Bill on Salaries (Draft Bill) was inconsistent in that it still allowed employers to pay their employees in foreign currency. Article 21 (2) does indeed stipulate that if a salary is paid in a foreign currency, then such payments should be based upon the official exchange rate on any given day.
“The stipulations laid out in the Draft Bill should conform to the Currency Law, and this means that salary payments should strictly be made in rupiah,” asserted Mr. Siregar.
Mr. Siregar firmly believes that paying employees in foreign currencies such as American dollars (USD) can constitute unfair treatment, as employees paid in USD may effectively be receiving a raise when the rupiah exchange rate drops against the greenback, while other employees paid in rupiah are not able to enjoy such a bonus.
(sp)
Marcell Sihombing, Ady T.D. Achmad
As stipulated in Bank Indonesia (BI) Regulation No. 31/3/PBI/2015 (2015 BI Regulation), every transaction taking place on Indonesian soil must now utilize rupiah, and this includes the payment of salaries to both local and foreign workers. This requirement has now been reaffirmed by Indonesia’s Minister of Employment, M. Hanif Dakhiri.
“According to Bank Indonesia, the new regulation, as it pertains to the payment of salaries, requires that rupiah be used, and we should all be complying with this directive,” explained Minister Dakhiri during a statement made in Jakarta last Tuesday.
In a recent press release, the Ministry of Employment revealed that the 2015 BI Regulation aims to reinforce the sovereignty of the rupiah on Indonesian soil, as well as to ensure the stability of its exchange rate.
In addition, Law No. 7 of 2011 on Currency (Currency Law) mandates criminal sanctions for parties refusing to use rupiah within Indonesian territory in the form of a one-year maximum jail term, as well as a maximum fine of IDR 200 million. Furthermore, any violations as regards this mandatory use of rupiah in non-cash transactions shall be subject to administrative sanctions in form of a written notice setting out payment obligations, as well as a prohibition on payment-traffic activities.
Commenting on the matter, the Secretary General of OPSI (Organisasi Pekerja Seluruh Indonesia), Timboel Siregar, expressed his hope that the government would stand firm as regards the implementation of this law. However, Mr. Siregar also pointed that Article 21 (2) of the Draft Bill on Salaries (Draft Bill) was inconsistent in that it still allowed employers to pay their employees in foreign currency. Article 21 (2) does indeed stipulate that if a salary is paid in a foreign currency, then such payments should be based upon the official exchange rate on any given day.
“The stipulations laid out in the Draft Bill should conform to the Currency Law, and this means that salary payments should strictly be made in rupiah,” asserted Mr. Siregar.
Mr. Siregar firmly believes that paying employees in foreign currencies such as American dollars (USD) can constitute unfair treatment, as employees paid in USD may effectively be receiving a raise when the rupiah exchange rate drops against the greenback, while other employees paid in rupiah are not able to enjoy such a bonus.
(sp)