In March 2025, All Export Earnings Must Be Kept In Indonesia For One Year

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In March 2025, All Export Earnings Must Be Kept In Indonesia For One Year

Friday, 31 Jan 2025

The government has decided that Export Earnings in Foreign Exchange (DHE) must be kept entirely within the country for one year starting March 1, 2025. This was announced by Coordinating Minister for Economic Affairs Airlangga Hartarto after a limited meeting with President Prabowo Subianto at the Presidential Palace in Central Jakarta on Tuesday, January 21, 2025. Previously, at least 30 percent of DHE from natural resources had to be placed in a special foreign currency account for a minimum of three months. "For export earnings, the requirement is now 100 percent for a one-year period," said Airlangga on Tuesday.

Airlangga mentioned that this rule applies to exporters of natural resources with a minimum export value of 250,000 US dollars. In line with this regulation, the government and Bank Indonesia are preparing a facility with a 0 percent Income Tax rate on interest income from the placement of export earnings. "Normally, the tax is 20 percent, but for DHE, it is 0 percent," he stated. Additionally, the government will offer various incentives to exporters who comply with this rule, such as cash collateral that can be used as loan collateral in banks.

Airlangga noted that this policy applies to the coal mineral sector and other natural resources, including palm oil. However, it does not include the oil and gas sector. "The fishing and forestry sectors are fully included. Export earnings can be converted to the rupiah. This conversion aims to increase the supply of dollars without excessive intervention from Bank Indonesia and also relates to interest rates and foreign exchange," explained Airlangga.

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