BI Builds Partnership with Central Bank of PNG

Bank Indonesia - Supplied
Bank Indonesia – Supplied

Jayapura, Jubi – Bank Indonesia Papua Representative is currently in the process of entering a partnership with the Central Bank of Papua New Guinea, its chief Joko Supratikto said.

“The partnership of BI-PNG Bank is aimed to tackle the distribution of PNG currency, Kina, in Indonesia,” he said on Friday (29/2/2016) in Jayapura.

The partnership is based on the needs of the Central Bank of PNG to regulate the kina that has beein circulating excessively in Papua, causing a shortage of cash in their country.

This situation, according to him, is also becoming a particular concern of BI, because referring to the regulation on cash transaction in Indonesia; it must use rupiah instead of other currency.

“It becomes a special attention. Frankly, now at the Skouw border area, the cash transaction is about 90 percent in Kina. Meanwhile we have obligation using Rupiah in the entire regions of Indonesia,” he said.

He added BI has taken measures to immediately place an official currency exchange in the border area. “We have met with foreign exchange and banking businessmen. We keep enforce the procurement of money changer in there. Next time in the future, we will specifically visit the border area to observe it in detail,” said Joko. (*/rom)