Key Points in the Revised Export Earnings Rules

The Indonesian government is revising Government Regulation No. 1/2019 on Foreign Exchange Proceeds from the Exploitation, Management, and Processing of Natural Resources to make a number of changes to the provisions regarding the obligation to place foreign exchange export proceeds (DHE) in the country.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the obligation to place DHE in the country is important for strengthening the national economy. The DHE regulation can increase the liquidity of foreign exchange reserves, especially in US dollars, maintain exchange rate and interest rate stability, and serve as a source of financing to encourage investment.

Under the revised regulation, the government will require 30 percent of DHE from natural resources valued at US$250,000 or more to be deposited in a special domestic account for 90 days. The government will also provide fiscal and financial incentives for the placement of export proceeds, which the Finance Minister and Bank Indonesia Governor will determine.

"Of course, fiscal incentives for the placement of export proceeds will be provided by the Finance Minister and Bank Indonesia Governor," Airlangga said at the Kick Off of the National Movement for Food Inflation Control (GNPIP) Year 2023, on Sunday.