The Government Will Require Exporters to Keep Dollars Domestically

export destinations revealed by BPS

Exporters will soon be obliged to keep their export dollars domestically. This latest regulation is a follow-up to the management of Export Proceeds (DHE) after the revision of Government Regulation (PP) No. 1 of 2019 was established. Then, what about the technical?

Previously, in the revision of the regulation, President Joko Widodo’s government would require exporters to park their DHE domestically for a certain period. In addition, the industrial sector that is required to park its export dollars has also been expanded.

The Minister of Finance Sri Mulyani Indrawati emphasized that the duration of time that would be set for exporters to be required to keep DHE in domestic banks had not yet been decided.
“Later we will discuss it together with the Coordinating Ministers and Ministries and Bank Indonesia,” he told reporters when met at the State Palace, Thursday (12/1/2023).

With the PP revision, Sri Mulyani, the government, and BI will make changes, especially regarding the scope of the regulations.

“Later we will coordinate with the coordinating minister to discuss the rules,” he said.

BI previously emphasized that the revised PP should be made as clear as possible in order to avoid multiple interpretations among business actors, especially investors.

Meanwhile, this decision brought the rupiah to strengthen. At the beginning of trading yesterday, Wednesday (12/1/2023), the rupiah had fluctuated, but entering the middle of the day the rupiah immediately strengthened quite sharply. The rupiah then ended trading at IDR 15,480/USD, strengthening 0.58%
With this strengthening, the rupiah became Asia’s best currency. Meanwhile, the Executive Director of the BI Communication Department Erwin Haryono said that BI would certainly support strengthening the external resilience of the Indonesian economy. However, BI still highlights its implementation.

“It’s just that in the implementation later you have to be careful not to interpret it as wrongly,” said Erwin.

BI’s fears are justified, the article in the Law (UU) which regulates foreign exchange matters, Indonesia still adheres to free foreign exchange, not the other way around, namely foreign exchange control.