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View all search resultsNew export earnings rule to exempt certain countries, Purbaya says
Though the finance minister did not specify which countries would be exempted from the latest forex earnings rule, set to enter into force on June 1, this may apply to the US under the terms of the ART.
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A worker watches heavy equipment operate on Jan. 8, 2014, at a mining site near Sorowako, South Sulawesi. (Reuters/Yusuf Ahmad)
T
he government plans to offer a yearlong exemption to “some countries” from a new policy requiring natural resource exporters to deposit their foreign exchange earnings (DHE) exclusively in state-owned banks, which goes into force on June 1.
“It has been decided that [the new DHE rule] will take effect on June 1. Which countries are included will be determined when we publish the regulation,” Finance Minister Purbaya Yudhi Sadewa said on Thursday during a press conference of the Financial System Stability Committee (KSSK).
Though he declined to disclose which countries would be exempted, Purbaya said the policy would still apply to exporters in the extractive industries.
Read also: Govt to tighten export-receipt rules, curb lingering loopholes
Under the Agreement on Reciprocal Trade (ART) with the United States signed on Feb. 19, Indonesia agreed to eliminate both tariff and nontariff barriers in exchange for a reduction in US tariffs from 32 to 19 percent.
The agreement, which is yet to be ratified by either country, includes a commitment to exempt American investors from a regulation requiring natural resource exporters to keep their earnings in Indonesia for a certain duration.
Indonesia also agreed to lift restrictions on US-bound exports of industrial commodities including critical minerals as well as to drop requirements such as mining sector divestment for US investors to own local businesses.
