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Govt reaffirms plan to make exporters bring 30% of revenue home
The coordinating economic minister says getting at least 30 percent of exporters' earnings into the country will help strengthen the rupiah against external factors.
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Workers use a crane to move a container at Tanjung Priok container terminal in North Jakarta on Aug. 5, 2022. (Antara/Rivan Awal Lingga)
T
he government has reaffirmed a target to bring at least 30 percent of exporting companies’ earnings into the country with a set of new policy tools to be introduced in March.
Coordinating Economic Minister Airlangga Hartarto said on Tuesday that based on data provided by the Finance Ministry and Bank Indonesia (BI), the 30 percent figure was achievable and would suffice to buttress the national currency.
He said the effort to get exporters to keep earnings onshore would apply to proceeds worth at least US$250,000.
“According to the data we got, the 30 percent can be retained at home, and we will provide a transition period of three months,” Airlangga said at the 2023 Economic Outlook, an event hosted by CNBC Indonesia.
Read also: BI stops hiking interest rates after months of hawkish stance
The government has noted that a lot of export revenue obtained by Indonesian businesses is kept abroad, particularly in foreign banks, such as in Singapore.
The country booked record trade surpluses last year, which supported the rupiah at a time when the currency, along with those of other emerging markets, was under pressure from rising interests rates in the United States.
