Implementation of Bank Indonesia Policy on The Obligation to Use Rupiah in Indonesia Border Region

(Case study in Centre Sebatik District of Nunukan Regency)

DOI

10.2991/978-2-494069-83-1_135How to use a DOI?

Keywords

implementation; policy; ringgit; rupiah

Abstract

This paper explains and analyzes Bank Indonesia's policies addressing the required use of the Rupiah in Indonesia's border areas, the obstacles preventing policy execution, and measures to overcome these problems. This study is descriptive and inductive. Interviews, observations, and documentation are used to collect data. Reduction, presentation, and conclusion are data analysis strategies. The researcher employs the Van Meter and Van Horn implementation theory with six dimensions: Objectives and Measures, Resources, Communications and Implementation Activities, Implementing Agency Characteristics, Economic, Social, and Political Environment, and Implementing Trends. This study shows that Bank Indonesia's policy on the mandatory usage of the Rupiah in Indonesia's border territories (Central Sebatik District) has been implemented well. The results are not optimal due to several obstacles, such as the fluctuating Rupiah exchange rate, dependence on the trade sector and product marketing as well as the supply of necessities from Malaysia, low public awareness of existing policies, limited infrastructure and facilities, not well-coordinated resource management, and lack of coordination between agencies and policy instruments. The researcher advises increasing the intensity of socialization activities, forming a specific team to focus on the economics and financial system (payment system), human resource development, and supporting infrastructure and facilities, and creating a new economic center.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Nuraida Aris
AU  - Herlina
PY  - 2022
DA  - 2022/12/30
TI  - Implementation of Bank Indonesia Policy on The Obligation to Use Rupiah in Indonesia Border Region
BT  - Proceedings of the International Conference on Applied Science and Technology on Social Science 2022 (iCAST-SS 2022)
PB  - Atlantis Press
SP  - 776
EP  - 781
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-83-1_135
DO  - 10.2991/978-2-494069-83-1_135
ID  - Aris2022
ER  -