Indonesia Implements New Regulation for Export Proceeds in State-Owned Banks

Background and Rationale

The Indonesian government, under the leadership of President Prabowo Subianto, has taken a significant step in regulating the placement of export proceeds. The new regulation mandates that Devisa Hasil Ekspor (DHE), or export proceeds in foreign currency, must be placed in state-owned banks. This move is part of a broader strategy to strengthen Indonesia's foreign exchange reserves and enhance the country's financial stability.

Key Features of the New Regulation

1. Mandatory Placement: Exporters are now required to place their DHE in state-owned banks. This is a shift from previous regulations that may have allowed more flexibility in where export proceeds could be held.
2. Presidential Approval: The new rule has been signed by President Prabowo Subianto, indicating strong government backing for the measure.
3. Revision of Existing Rules: The regulation revises Peraturan Pemerintah (PP) Nomor 8 Tahun 2025, which itself was an amendment to PP Nomor 36 Tahun 2023. This shows a continued effort by the government to refine and strengthen regulations related to export proceeds.
4. Implementation Timeline: While the exact implementation date is not specified, the Minister of Finance, Purbaya Yudhi Sadewa, indicated that the regulation is ready to be enacted soon after being signed by the President.

Implications for Stakeholders

• Exporters: Companies involved in exporting goods will need to comply with the new requirement, potentially affecting their cash management and foreign exchange strategies.
• State-Owned Banks: These banks are likely to see an increase in foreign currency deposits, which could enhance their liquidity and ability to lend in foreign currency.
• Financial Market: The overall impact on the financial market could be positive, as the measure is designed to strengthen the country's foreign exchange reserves and potentially stabilize the Rupiah.

Government's Perspective

Minister Purbaya expressed confidence in the new regulation, stating that it would boost foreign exchange reserves and support national economic objectives. The government appears determined to implement this policy despite potential resistance from some business groups who might view the mandatory placement as restrictive.

Conclusion

The new regulation represents a significant policy shift in Indonesia's management of export proceeds. While it may present challenges for some exporters, it is expected to contribute to a stronger financial position for the country. The coming months will be crucial in observing how this policy is implemented and its overall impact on the economy.