Published on 02/08/2023 at 12:01 GMT+7 Reading time
Bank Indonesia (BI) imposed a new regulation on foreign reserves originated from exports (Devisa Hasil Export - DHE) in accordance with Presidential Regulation No. 36 of 2023 concerning rules requiring exporters of natural resources to deposit 30% of their foreign exchange domestically.
BI asserted that the policy will help Indonesia to increase foreign exchange reserves, and therefore reduce the issuance of foreign debt.
On the other hand, not all exporters will be subjected to this rule. Exporters who have customs declarations of up to US$ 250 thousand are required to pay 30% of their foreign exchange of the export value.
Meanwhile, according to the Ministry of Finance (Kemenkeu) this policy has a potential value of US$ 40-49 billion, and the potential for additional liquidity could reach US$ 10-12 billion.
Exporters, including those from the mining, plantation, forestry and fisheries sectors, are required to deposit their foreign exchange domestically.
The foreign exchange must be deposited into a special domestic account after three months of export notification, and it is fully possible that it will only be received in December 2023.
BI asserted that if business compliance can reach 90%, this available foreign exchange reserve could increase by US$ 9.2 billion. Meanwhile, 75% compliance will only increase available foreign exchange reserve by US$ 8 billion.
Bank Indonesia Governor Perry Wardjiyo assured that the policy would not affect the company's cash flow.
Companies are only obliged to store 30% of their foreign exchange for three months. After that, the deposits can be used as collateral to obtain credit facility at a bank.
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