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Govt to require exporters to keep 100% earnings onshore for a year
President Prabowo Subianto has “greenlit” the new arrangements and the government will soon introduce an implementing regulation, Airlangga said.
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Coordinating Economic Minister Airlangga Hartarto speaks to The Jakarta Post about the Indonesian economy on Sept. 30, 2024, in his Jakarta office. (Office of Coordinating Economic Minister/-)
T
he government will require natural resource exporters to keep their entire export receipts (DHE) onshore for a year, Coordinating Economic Minister Airlangga Hartarto said on Tuesday.
Airlangga told reporters at his office that President Prabowo Subianto has “greenlit” the new arrangements and the government would soon introduce an implementing regulation.
Under prevailing stipulations, exporters with over US$250,000 in foreign exchange earnings will be required to deposit at least 30 percent of their export revenue in Indonesian banks for a minimum of three months. This applies to companies in the mining, plantations, forestry and fisheries sectors.
Airlangga said that according to the new stipulation, exporters with over $250,000 in foreign exchange earnings will need to deposit 100 percent of their foreign exchange earnings for at least one year.
Read also: Businesses fret over extended export earnings lockup
The minister went on to say that the new arrangement might bring in $90 billion in potential foreign exchange reserves. Bank Indonesia (BI) data showed on Jan. 8 that December’s foreign exchange reserves hovered at $155.72 billion, which marked a historic high.
Separately, Airlangga told reporters in the State Palace complex on Tuesday the new regulation would include new sectors on top of the four that were mandated under existing stipulations, but he did not divulge what new sectors would be incorporated.
