Coordinating Minister for Economic Affairs Airlangga Hartarto announced significant updates regarding the revised regulation on Export Proceeds (DHE) from Natural Resources (SDA). Under the new policy, exporters of natural resources will be required to deposit 100% of their export earnings in domestic banks for at least one year, a notable shift from the previous rule which mandated a minimum retention of 30% for three months.
"So, it’s 100% (placement), and all incentives will be provided. We will offer them later," Airlangga said in a media briefing in Jakarta on Tuesday (January 21).
He also mentioned that several incentives for exporters and banks would be offered, including mechanisms for cash collateral and provisions for tax and dividend payments.
Read also : Nickel industry opposes new DHE policy
Airlangga assured that the policy has received approval from President Prabowo Subianto and confirmed that there would be no opposition from businesses, as the government had involved all relevant stakeholders in discussions. "There is no (opposition); we have communicated with all stakeholders," he added.
The minister expressed confidence that the revised DHE SDA policy would help boost Indonesia's foreign exchange reserves by up to US$ 90 billion. The regulation is currently in the harmonization phase and is expected to be issued soon.
However, the policy has faced opposition from business associations, including those in the nickel and coal sectors, who argue that the extended deposit period could disrupt cash flows and operations.
Editing by Reiner Simanjuntak
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