The Bank of Indonesia (BI) has announced several new policies to maintain the country’s macroeconomic stability and ensure sustainable growth.

The policies include an extension of the time period for deposits in foreign currencies from 7-14 days and a month to one month and 12 months.

The bank also eases the conditions for exporters to buy foreign currencies and issues BI certificate of deposit to help banking sector manage the rupiah’s liquidity.

Speaking at a press conference on August 23, BI Governor Agus Martowardojo said he hoped that the changes will help improve the efficiency of the Indonesian Government’s package to boost economic growth.

Introduced by President Susilo Bambang Yudhoyono on August 23, the package aims to improve the balance of payments and encourage foreign investment through raising import duties for several luxury goods.

The government also encourages increased use of bio-diesel for reducing the price of fuel, while changing the duties level for industry sectors to promote export and mining in more fields.

According to Indonesia’s National Statistical Office (BPS), the country saw a deficit of 9.8 billion USD in current accounts in the second quarter of this year – the highest level since the financial crisis in Asia in 1997-1998. Its rupiah also depreciated with an exchange rate of 11,000 rupiah for one USD on August 22, the lowest since mid-2009.-VNA