JAKARTA: Bank Indonesia (BI) has supported the governments order to ban transactions in US dollar at Jakartas Tanjung Priok Port, Senior Deputy Governor Mirza Adityaswara said here on Friday.

He noted that domestic transactions must be carried out using the countrys currency in line with currency law number 7 of 2011.

“The law must be adhered to because it was formulated by the government and the parliament (DPR),” he said. Article 21 of the law states that financial transactions carried out within the Unitary State of Indonesia must use the countrys currency, he explained.

“The law states that all transactions both cash and noncash must be carried out using rupiah,” he said.

Mirza admitted that the US dollar continued to be often used in commercial transactions in Indonesia, such as in property leasing, gas trading, and port cost payments, although they were not export-import transactions or foreign debt payments.

He noted that the situation still continued because of a lack of understanding of the people involved about the essence of the law.

Based on that he said BI and the government will continue coordinating to inform about the law.

“BI and the government will bring the law to the knowledge of the people because its violation could lead to a criminal sanction. So, we will continue to promote the law,” he affirmed.

Coordinating minister for economic affairs Chairul Tanjung during a visit to Tanjung Priok on Thursday had ordered the use of the rupiah currency in transactions at the port.

“Transactions within the Indonesian territory must be carried out using the rupiah currency. We have asked Pelindo II (the port operator) to assure that all companies at the port implement the law,” he said.

The minister pointed out that various transactions in port areas in Indonesia have often been carried out using US dollar and the rupiah currency has not been fully used.