Heaptalk, Jakarta — Indonesian President, Prabowo Subianto, released a latest Government Regulation which stipulated foreign exchange placement, specifically for natural resources export earning.
“In order to strengthen and drive the impact of foreign exchange management from natural resources export, Government release PP No. 8 Year 2025,” voiced Prabowo in a press conference in the National Palace (02/17).
In the new regulation, the Government increase the obligation to place foreign exchange earnings from the natural resources export to 100% for 12 months start from the placement’s date. The fund will be placed in special account in DHE SDA in the national bank. The new regulation is applied for any mining sectors – except oil and natural gas – forestry, plantations, and fisheries. Specifically for oil and gas sector, the government will keep applying PP No. 36 Year 2023.
During the press conference, Indonesian 8th President also affirmed the new policy will be applied start from 1 March 2025. This measure is expected to leverage the foreign exchange reserves amount to $80 billion.
“If it is completely (retain) for 12 months, the result is estimated to exceed $100 billion,” said Prabowo.
Moreover, aiming to maintain business sustainability of the exporters, Indonesian Government allows the utilization of DHE SDA for several purposes, including:
- Exchange into rupiah at the same bank to carry out operational activities and maintain business continuity.
- Payments in foreign currency for tax obligations, non-tax state revenues and other obligations to the government in accordance with statutory regulations.
- Dividend payments in foreign currency.
- Payment in the form of goods and services in the form of raw materials, auxiliary materials, or capital goods that are not available yet, only partially available, available but the specifications are not met domestically, in the form of foreign currency.
- Repayment of loans for the procurement of capital goods in the form of foreign currency.
