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View all search resultsNew export earnings rules raise concerns over banking competition
The impact of the regulation on the banking industry would be uneven, as private banks may lose up to half of their export forex funds.
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Export oriented: Using a rubber-tired gantry crane, port workers load export-bound containers onto a vessel flying a Portuguese flag on June 24, 2025, at Tanjung Mas port in Semarang, Central Java. (Antara/Aji Styawan)
T
he government has rolled out a new regulation requiring exporters to place their natural resource export proceeds (DHE SDA) in state-owned enterprise (SOE) banks rather than private lenders, a move that analysts say could strengthen the former's foreign exchange liquidity but risks distorting competition in the banking industry.
The new regulation, which took effect on June 1, is aimed at strengthening the nation’s economic resilience, boosting onshore foreign exchange retention and increasing banking liquidity.
Certain exporters under bilateral and free trade agreements (FTAs) with trading partners, however, are allowed to place a maximum of 30 percent of their DHE SDA funds in private banks.
Coordinating Economy Minister Airlangga Hartanto has previously revealed that the government would give flexibility on DHE SDA requirements for companies from selected countries, including the United States.
Finance Minister Purbaya Yudhi Sadewa has expressed optimism that the new DHE SDA requirements would positively impact Indonesia’s banking industry, particularly SOE banks.
“They will have more dollars and bigger cash. In the financial sector, it’s called ‘cash is king’. With stronger liquidity, SOE banks will become even more solid,” he said on Sunday, as quoted by Kontan.
Greater retention of funds within the country will increase banks’ capacity to support economic activity and financing for productive sectors, he added, noting that some of the export proceeds that were still held abroad had limited their contribution to the domestic economy.
