Coordinating Minister for the Economy, Airlangga Hartarto, has revealed the government’s decision to revise the regulation regarding Foreign Exchange from Natural Resource Exports (DHE SDA) as part of the instrument to overcome the weakening rupiah exchange rate.
There are two focal points in the revised regulation, namely the storage time of DHE SDA and its percentage. The government has decided to add both points significantly.
“So it will be one year (the storage period for export proceeds). And it must be 100 percent (the percentage of DHE that must be stored),” Airlangga said on Tuesday, January 21, 2025.
It is stipulated in Government Regulation (PP) No. 36/2023 on DHE SDA that exporters were only required to store foreign exchange with a percentage of 30 percent. This export foreign exchange must be stored in Indonesia for a period of three months.
Airlangga expressed confidence that increasing the percentage and storage period of foreign exchange from natural resource exports has the potential to increase Indonesia’s foreign exchange reserves.
“The potential could reach more than US$90 billion (Rp1.5 trillion) a year,” the minister.
Despite the significant revision increase, Airlangga ensured that the government will provide incentives, although it remains unclear as of today what kinds of incentive that will be given to exporters.
He only cited that the incentives will be given from several aspects.
“Banking will be prepared for cash collateral that are prepared for use for tax payments,” he said.
Currently, the latest PP related to the DHE SDA rules is being prepared. The draft regulation will be coordinated with the Central Bank (BI), the Financial Services Authority (OJK) and banking community. The PP update has also been approved by President Prabowo Subianto.
