|
Date
|
Changes
to the exchange rate regime
|
Indonesian Rupiah per U.S. Dollar
|
| 17 April 1970 | The Indonesian Rupiah (Rp) was devalued to a new Flexible General Exchange Rate, or Devisa Umum (DU), of Rp378.00 per U.S. Dollar. A subsidiary Flexible Credit Foreign Exchange Rate, or Devisa Kredit (DK), of Rp326.00 per U.S. Dollar was created. These changes represented a simplification and merging the multiple exchange system of the Export Bonus (BE) Certificate Rate and the Complementary Foreign Exchange (DP) Rate, and formed the basis of the exchange rate structure. (WCY 1984, p.357) The 10% exchange tax on export proceeds was introduced. | 378.000 |
| 10 December 1970 | The exchange rate was unified by the elimination of the Flexible Credit Foreign Exchange Rate (DK). The Flexible General Exchange (DU) Rate became applicable to all exchange transactions. (WCY 1984, p.357) | |
| 23 August 1971 | Following the floating of the U.S. Dollar on 15 August 1971, the Rupiah was devalued 8.9% in terms of gold from Rp378.00 to Rp415.00 per American unit. The Flexible Credit Foreign Exchange (DK) Rate was reintroduced, creating a multiple exchange rate structure. (WCY 1984, p.357) In the Jakarta foreign exchange Bourse, transactions in U.S. Dollars had been effected at the rate within 1% either side of Rp415 per U.S. Dollar. (IMF 1976, p.235) | 415.000 |
| 20 December 1971 | The gold content of Rupiah reduced by 7.89% because of devaluation of U.S. Dollar. (WCY 1984, p.357) | |
| 14 February 1973 | Indonesia announced that the Official Rate, or Flexible General Foreign Exchange (DU) Rate, of Rp415.00 per U.S. Dollar would remain unchanged, Rupiah devaluated by 10% in terms of gold. (WCY 1984, p.357) | |
| 12 June 1974 | The 10% exchange tax on export proceeds was replaced by a 10% tax on the export value of most shipments abroad, retaining the Export Rate of Rp374.00 per U.S. Dollar. (WCY 1984, p.357) | |
| 1 April 1976 | The export tax was changed to 5%-10% depending on commodity. (WCY 1984, p.357) | |
| 16 November 1978 | The Flexible Credit Foreign Exchange (DK) Rate was abolished. (WCY 1984, p.357) The exchange rate of the Rupiah was depreciated by 33.6%, adjusted from Rp415.00 to Rp625.00 per U.S. Dollar. At the same time, the Rupiah's link to the U.S. Dollar was severed and the Bank Indonesia had set the middle rate each day using a basket of currencies of Indonesia's main trading partners as one of the variables. An Effective Rate was established on a controlled, floating basis. Transactions in the Jakarta Foreign Exchange Bourse were effected at rates within 1% either side of the middle rate of the Rupiah. (IMF 1979, p.212) | 625.000 |
| 29 January 1979 | The facility given to foreign exchange banks to conclude swap transactions with Bank Indonesia was extended to include nonbank financial institutions. Each foreign exchange bank and nonbank financial institution was subject to a ceiling set by Bank Indonesia. (IMF 1980, p.202) | |
| 4 August 1979 | An additional export tax of 20% was established. (WCY 1984, p.357) | |
| 30 March 1983 | The effective Rate for the Indonesian Rupiah was depreciated 27.6%, from Rp702 to Rp970 per U.S. Dollar. (Prawiro, p.223) Bank Indonesia announced that it would continue to follow a policy of managed float, and would consider a broader set of currencies in determining the exchange rate of Rupiah. (IMF 1984, p.260) | |
| 1 January 1984 | The MPO tax on imports and exports was abolished. (WCY 1985, p.401) | |
| 12 September 1986 | The Effective Rate for the Rupiah was devalued 31% in terms of U.S. Dollar. It was changed from Rp1134 to Rp1664.00 per U.S. Dollar. (IMF 1987, p.277) | 1,664.000 |
| 24 October 1986 | Five export taxes were fixed at 0%, 5%, 10%, 20% and 30%, with the provision that certain exports were subject to an extra export tax. (IMF 1987, p.278) | |
| 25 October 1986 | The ceiling on foreign currency swaps between commercial banks and Bank Indonesia was lifted. However, the amount of swap must not exceed the foreign loan received by the commercial bank. The premium on the swap was set by the Bank Indonesia at the fixed rate of 9%. (IMF 1987, p.278) | |
| 27 October 1988 | The premium applicable to operations under the official swap facility would be set according to the difference between the average domestic deposit rate and LIBOR for the relevant period. For swap transactions with maturities exceeding 1 year, the premium would be established only for the first 12 months. The Government would not provide any commitment on the size of the premium for the subsequent period. (IMF 1989, p.237) | |
| 31 March 1989 | Following the IMF classification, Indonesia was classified under managed floating. (Ariff, p.155) | |
| 30 April 1989 | Foreign exchange banks were required to limit their daily net open position on foreign exchange to less than 25% of their own capital. Banks exceed this limit on net open position would be subject to a sanction. Controls on foreign exchange banks' offshore borrowing, which was previously subject to approval by Bank Indonesia, were lifted. (IMF 1990, p.234) | |
| 16 September 1989 | The exchange rate system was revised. The Effective Rate, based on a managed float, would apply only to certain transactions undertaken at certain times of the day. An Interbank Free Rate, which was determined between banks, would govern all other transactions. (WCY 1990/93, p.439) | |
| 1 March 1991 | Bank Indonesia ceased to accept swaps for one-month and shorter maturities, and reduced banks' overall limits to 20% from 25% of capital. (IMF 1992, p.234) | |
| 1 November 1991 | Banks were required to keep the net open position in foreign currency including their off-balance-sheet accounts at or below 20% of capital. The swap facility was modified. Two categories of swaps were created: liquidity swaps (with maturities of up to 2 years) and investment swaps (with 2-3 years' maturities). Bank Indonesia gave up the obligation to accept swaps with maturities of less than 2 years. (IMF 1992, p.234) | |
| 16 September 1992 | The Central Bank increased the spread between its buying and selling rates for the U.S. Dollar to Rp10 from Rp6 per U.S. Dollar. (WCY 1990/93, p.439) | |
| 1 November 1993 | The exchange rate in Bank Indonesia's daily squaring session in the afternoon was allowed to deviate from the indicative rate posted in the morning by Rp2 a day (previously, the deviation was allowed up to Rp1 a day). (IMF 1994, p.240) | |
| 6 September 1994 | Bank Indonesia announced daily buying and selling rates that were computed on the basis of a basket of weighted currencies with a spread of plus or minus Rp15. The limits on banks' open positions were liberalized, banks were required to meet a net open position of 25% of capital instead of 20%, and the open position requirement would no longer apply to individual currencies. (IMF 1995, p.238) | |
| 30 June 1995 | Bank Indonesia announced that buying and selling rates computed on the basis of a basket of weighted currencies with a spread of plus or minus Rp22. (IMF 1996, p.237) | |
| 17 July 1995 | Bank Indonesia terminated the provision of investment swaps. (IMF 1996, p.237) | |
| 1 January 1996 | The Bank Indonesia (BI) within a system of managed float determined the exchange rate. The system was based on a daily announcement of "conversion rate band" (for official transactions with foreign exchange banks, the government and supranational institutions), and an "intervention band" (consisted of buying and selling rates that were computed on the basis of a basket of currencies). (IMF 1998, p.433) | |
| 13 June 1996 | The spread of the intervention band was increased to Rp118 (5%) from Rp66. (IMF 1997, p.403) | |
| 10 September 1996 | The spread of the intervention band was increased to Rp192, approximately 8%. (IMF 1997, p.403) | |
| 11 July 1997 | The intervention band was widening to 12% from 8%. (IMF 1998, p.433) | |
| 14 August 1997 | The managed floating exchange regime was replaced by a free- floating exchange rate arrangement. (IMF 1998, p.439) | |
| 28 February 1998 | A foreign exchange subsidy for food was introduced, which led to the reclassification of the exchange rate system from unitary to dual. (IMF 1999, p.422) | |
The exchange rate in the 3rd column is the Official Rate which set by the Central Bank of Indonesia (Bank Indonesia). When the effective rate was established in November 1978, the Bank Indonesia adopted a managed float exchange rate regime. The exchange rate of Rupiah was free to float in exchange market. But as the rate deviated far from the Official Rate, The Bank Indonesia would intervene the market through open market operation which maintained the rate closing to the Official Rate.
