JAKARTA – The government will require 100% of foreign exchange gains from exports of natural resources to be parked in Indonesia for one year in order to sustain national economic stability and resilience.

Airlangga Hartarto, Coordinating Minister of Economic Affairs of Indonesia, mentioned that Government Regulations regarding said mandate is under preparation.

“There will be coordination with Bank Indonesia (BI), Financial Services Authority, and banking,” said Hartarto in a press conference in Jakarta, Tuesday (21/1).

Prior to this, the government only mandates exporters to place a minimum of 30% of its forex gains from exports of natural resources. The placement term is also shorter, at a minimum of 3 months.

Hartarto confirmed that the government, along with BI, is preparing the 0% income tax facility on interest revenue in the deposit instrument of said forex gains. Without this facility, the interest income may still be subjected with 20% income tax.

In addition, Hartarto also said that exporters could use the foreign exchange placement instruments as collateral for bank loans and loans from the Indonesia Investment Authority (LPI). He assured that using foreign exchange earnings as loan collateral would not affect exporters' debt-to-equity ratio.

It should be noted that this policy mandating 100% parking of foreign exchange earnings from natural resources for one year, is targeted to take effect starting March 1, 2025. (KR/ZH)