JAKARTA, Feb. 17 (Xinhua) -- Indonesian President Prabowo Subianto announced on Monday a regulation requiring natural resource exporters to retain 100 percent of their foreign exchange revenues within the national financial system for 12 months.
"The government has mandated that the obligation to place foreign exchange revenues from natural resources within Indonesia's financial system will be increased to 100 percent for a period of 12 months," said Prabowo.
The regulation applies to exporters in the mining (excluding oil and gas), plantation, forestry, and fisheries sectors, requiring them to deposit all foreign exchange earnings in special accounts at national banks.
Prabowo noted that the policy, effective March 1, 2025, aims to enhance the management of foreign exchange revenues, ensuring they have a greater impact on the national economy. He projected that the policy would increase Indonesia's foreign exchange reserves by 80 billion U.S. dollars in 2025, with potential gains exceeding 100 billion dollars over 12 months.
Exporters will retain flexibility in utilizing their foreign exchange earnings, including converting them into rupiah for operational needs, fulfilling tax and non-tax obligations, paying dividends, procuring unavailable raw materials or capital goods, and repaying foreign currency loans.
However, non-compliant exporters will face sanctions, including the suspension of export services. The government plans to continuously evaluate the regulation's impact on the national economy. ■
