Airline Tickets Agents, Hotels and Restaurants in Indonesia Required to Transact Their Business in Indonesian Rupiahs
Bisnis.com reports that Bank Indonesia, the Association of Airline Ticket Agents (ASTINDO) and the Indonesian Hotel and Restaurant Association (PHRI) have signed a cooperative agreement committing to use the Indonesian Rupiah as the currency of exchange in every transaction carried out on Indonesia territory.
The official website of Bank Indonesia states that the agreement between ASTINDO and PHRI was signed on Friday, November 14, 2014 in Jakarta. The signatories to the agreement were the head of the money management division of Bank Indonesia Lambok A. Siahaan, the chairman of ASTINDO Nurlaila Hutabarat and the chairman of PHRI Wiryanti Sukamdani.
The tri-partie agreement encompasses three elements. First, ASTINDO and PHRI have committed to persuade their respective memberships to fulfill their obligation under Indonesian law to price goods and services in Indonesian Rupiahs and use the Rupiah as the currency of exchange in every transaction for the sale of airline tickets, hotel rooms and restaurants in Indonesia.
Second, ASTINDO and PHRI also agree to provide relevant data to Bank Indonesia pursuant to their obligation to use the Indonesian Rupiah. Third, within the framework of enhancing the quality of human resources, ASTINDO and PHRI have agreed to conduct training and education pursuant to the obligation of their members to use the Indonesian Rupiah for transactions carried our in Indonesia.
Fourth, ASTINDO and PHRI agreed to socialize the obligation to use the Indonesian Rupiah for transactions on Indonesian territory to their members and other parties. The agreement between Bank Indonesia, ASTINDO and PHRI forms a part of the implementation of Law No. 7 of 2011 on Currency.
Many tour and hotel operators in Indonesia price their products in U.S. dollars on their websites and contracts with final payment transacted within Indonesia done in Indonesian Rupiah at the prevailing rate of exchange. Payment portals used by Indonesian hotel and travel operators may perform the final sales transaction in Indonesian Rupiahs or a foreign currency, depending on the actual locale where the transaction is executed.
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