Coordinating Economic Minister Airlangga Hartarto speaks to The Jakarta Post about the Indonesian economy on Sept. 30, 2024, in his Jakarta office. - Photo: Office of Coordinating Economic Minister
JAKARTA: (Bernama) Indonesia will soon mandate that exporters deposit 100 per cent of their export proceeds from natural resources into the country’s financial system for at least one year, replacing the current rule which required a 30 per cent deposit for a minimum of three months, the Coordinating Ministry for Economic Affairs announced.
The existing policy, which took effect on Aug 1, 2023, applies to exporters in sectors such as mining, plantations, forestry, and fisheries.
It was formulated to strengthen the country’s financial system and enhance economic stability.
Coordinating Minister Airlangga Hartarto confirmed that the policy has been finalised, with the government regulation currently being prepared, adding that efforts are underway to coordinate with the central bank, the Financial Services Authority, and the banking sector to implement the new rule.
Under the revised regulation, exporters with transactions below US$250,000 will be exempt from the new requirements, offering relief to small businesses with limited capital.
"This move aims to ease the burden on small businesses and help them remain competitive in global markets,” Airlangga stated in a statement on Wednesday (Jan 22).
He said the new policy is expected to boost foreign exchange reserves by up to US$90 billion, helping stabilise the Indonesian rupiah, which is currently trading at 16,330 against the US dollar, CNBC Indonesia reported.
However, the policy has drawn concerns from exporters, who are urging the government to improve the export financing scheme before its implementation to avoid disruptions to their operations.
Indonesian Exporters Association chairman Benny Soetrisno voiced support for the revised policy but raised concerns about financing challenges.
"Many exporters, especially in mining, rely on foreign financial institutions. The new requirement to deposit export proceeds in the domestic financial system for a year could disrupt their operations,” he told CNBC Indonesia’s Power Lunch programme. - Bernama
