BI ASKED TO SUPPORT CONTRACTORS ABROAD

Jakarta, Jan 22 (ANTARA) - Bank Indonesia (BI), the central bank, had been asked to support contractors of foreign projects under cooperation with the central banks of the projects of the countries of origin.

"There should be cooperation among the central banks to send workers and factory equipment," Sumaryanto Widayatin, head of construction development at the Ministry of Public Works, said here on Thursday.
Widayatin also said, without the support of BI, it is difficult for Indonesian contractors to build foreign projects on account of the limited working capital loans for foreign projects.
"There is a regulation which considers the loans used for foreign projects may cause a capital flight that can endanger domestic monetary stability," he added.
Meanwhile, capital is needed for logistics support such as shipping, accommodation, equipment supplies, and health insurance cost, he said.
The involvement of the central bank was important to abridge contractors which do not have correspondent banks in their countries. It is also in anticipation of employers breaking their agreement, which required the government to take over responsibility.