ndonesian businesses have expressed concern over a new regulation on export receipts (DHE) that they say disrupts their cash flow and ultimately jeopardizes their global competitiveness.
Indonesian Employers Association (Apindo) chairwoman Shinta Kamdani told The Jakarta Post on Monday that she understood what the government was trying to achieve but said the policy had to take into account the “significant challenges” exporters would face.
“[It] often takes a long time for a company to receive the export receipts. With the DHE locked up for 12 months, exporters will struggle to finance the next production cycle, given that the [export earnings] have to be deposited for a long time,” said Shinta.
Under the regulation issued in 2023, exporters engaged in mining, plantations, forestry or fisheries are required to deposit at least 30 percent of their export earnings in Indonesia for a minimum of three months if their DHE surpass US$250,000.
Read also: New export receipt rules ‘mostly good’ but must not hamper cashflow
The mandatory deposit period would be extended from three months to “at least one year”, Coordinating Economic Minister Airlangga Hartarto announced on Wednesday.
Separately, Airlangga revealed on Friday that the government was looking to enforce the new regulation this month, flanked by incentives in the form of favorable interest rates on bank loans.
Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.
Thank you for sharing your thoughts. We appreciate your feedback.
Quickly share this news with your network—keep everyone informed with just a single click!
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Get the best experience—faster access, exclusive features, and a seamless way to stay updated.