ASIATODAY.ID, JAKARTA – The Indonesian government through the Ministry of Trade calls on Indonesian business actors not to carry out trade transactions with Bangladesh.
This appeal was conveyed as a follow-up to the information conveyed by the Indonesian Ambassador in Dhaka via letter Number B-00139/Dhaka/240822 regarding the Development of Bangladesh’s Economic Situation Following the Resignation of Prime Minister Sheikh Hasina and Anticipation of Banking Transactions.
The Director of Export and Import Facilitation at the Indonesian Ministry of Trade, Iskandar Panjaitan, appealed to Indonesian business actors to be careful in transactions with institutions and individuals from Bangladesh.
“We convey this to prevent losses that could arise from banking transactions with Bangladesh due to the current political and economic conditions,” said Iskandar in a statement in Jakarta, Tuesday, September 10 2024.
The letter stated that Bangladesh is facing a liquidity crisis. This condition is exacerbated by restrictions on cash withdrawals from Bangladesh’s central bank, namely the Bangladesh Bank. This condition was accompanied by inflation which reached 11.66 percent and pressure on the highest currency exchange rate in the last 12 years.
Meanwhile, from the energy sector, the Bangladesh Power Development Board (BPDB) is facing a debt burden of 45 thousand crore Bangladeshi taka or US$4 billion. This became a critical issue for the newly formed interim government.
Currently, Bangladesh Bank has issued instructions to nine banks not to accept check disbursements exceeding 200 thousand Bangladeshi taka or US$1,680.
The nine banks are Islami Bank Bangladesh, First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, Bangladesh Commerce Bank, National Bank, Padma Bank, and ICB Islami Bank.
In addition, Bangladesh Bank sets a cash withdrawal limit of 200 thousand Bangladeshi taka or US$1,680 per account in one day. This is to prevent the use of cash for illegal purposes.
The Directorate of Export and Import Facilitation conveyed a number of anticipatory steps that Indonesian business actors can take.
First, diversify products, especially durable products, and use secure payment mechanisms to avoid the risk of default or payment delays.
Second, using adequate financial protection in export and import transaction agreements and using trusted banks in Letter of Credit (L/C) transaction or payment mechanisms.
Furthermore, if you continue to use L/C, Indonesian business actors need to ensure the use of trusted international banks that have branches in Bangladesh.
Finally, for the energy sector, the Ministry of Trade appealed to Indonesian business actors to stop plans for transactions or collaboration with BPDB which is currently in arrears in payments to private parties.
In addition, there is a risk of delays in payments to Indonesian companies that have carried out transactions to support energy needs in Bangladesh. (AT Network)
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