Forex trade robust in Bali: BI

JAKARTA. Bank Indonesia (BI) has placed Bali as the province with the second most robust foreign exchange (forex) trade, after Jakarta.

Speaking with The Jakarta Post over the weekend, Benny Siswanto, head of the BI Bali and Nusa Tenggara regional office, said forex trade in Bali had been sky-rocketing due to it being an international tourist destination.

“BI and other financial institutions pay close attention to forex trade activities in Bali, which are prone to various irregularities in trading and transactions,” Benny said.

The forex trade in Bali involves people from all over the world, with more than three million foreign tourists expected to spend their vacation and do business on the resort island this year.

“Money changers are lucrative businesses here in Bali, especially in famous tourist destinations like Kuta, Sanur and Nusa Dua,” Benny said.

The quality and services offered at local and foreign banks, as well as money changers, on the island are noticed both nationally and internationally.

“Everybody sets their eyes on Bali. Any complaint or problem related to foreign exchange activities will certainly be in the spotlight,” added Benny.

He lamented that money changer businesses were not yet registered with the financial authority and still conducted illicit practices.

Trading bogus foreign currencies and cutting down the amount of transactions were among the many ways of cheating customers who wanted to exchange their currency.

BI has recorded only around 200 authorized money changers in Bali.

“The rest of them are unregistered and illegal. Many of them operate in crowded tourist areas, like Kuta and Seminyak,” he added.

Benny strongly warned locals and visitors alike to make their transactions in authorized businesses.

“People may notice how many companies and individuals have opened small outlets along Jl. Raya Kuta or in Seminyak. They just need a table or a small stall to operate their forex trade.”

The Association of Foreign Exchange Traders (APVA) Bali chapter has frequently reported irregularities in forex transactions by illegal money changers.

“BI, the police, regional governments and financial institutions must take stern action against the operators of unregistered money changers,” said Made Suparta Karang, an advisor at APVA.

Karang said the actions of these illegal companies tarnished Bali’s image as a tourist destination and the image of authorized money changers alike.

Ida Bagus Gede “Gus De” Sidharta Putra, an influential tourism businessman in Sanur, admitted that Sanur had once been a haven for illegal money changers.

“Since 2002, Sanur resort area has been free of unregistered money changers. This was due to a commitment made between the Sanur Development Foundation and the owners of money changer businesses and all related tourist enterprises operating here,” said Gus De. (Wasti Atmodjo)