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View all search resultsGovt mulls evaluating export receipt rules
Businesses have previously raised concerns that the new policy could disrupt cash flow and ultimately hurt global competitiveness.
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Heavy machinery vehicles operate in a coal mining site at Sumber Batu village, West Aceh regency, Aceh on May 24, 2024. (Antara/Syifa Yulinnas)
T
he government is planning to evaluate the export receipt rules (DHE), signaling dissatisfaction with the current progress in boosting the country’s foreign exchange reserves.
The initiative was discussed during a limited cabinet meeting on Sunday, where President Prabowo Subianto addressed the implementation of the new government regulation (PP) on DHE issued in February.
State Secretary Prasetyo Hadi said one of the key points of discussion was the current condition and stability of the country’s financial system and banking sector.
“We also discussed plans to evaluate the effectiveness and impact of implementing [the new DHE policy] so far. Based on what has been implemented, the results haven’t been satisfactory,” Prasetyo said, as quoted by Antara.
He acknowledged that several loopholes in the policy still allowed companies to place their foreign exchange earnings in offshore accounts.
“Yes, there are several gaps preventing our foreign exchange system from functioning optimally as we expected, so it needs to be further studied,” he said.
In February, the government issued a new DHE policy, requiring firms to keep all of their foreign exchange earnings in domestic banks for at least one year. The regulation, which took effect on March 1, aimed to curb the practice of transfer pricing.
