Indonesia's Export Earning Retention Policy Not Contradicting International Rules: Minister Airlangga

TEMPO.CO, Jakarta - Coordinating Minister for the Economy Airlangga Hartarto said the government will soon enforce a new policy regarding export earnings or DHE. Previously, he confirmed that the government was revising Government Regulation No. 1 of 2019 on DHE from natural resource exploitation, management and/or processing activities.

“Regarding DHE, the regulations being pushed will be applied to natural resources and their downstream. All DHE enters the Indonesian financial system with a deposit limit of over US$250,000,” Airlangga said in the Economic Outlook 2023 program "Maintaining Economic Momentum Amidst Uncertainty" which was broadcast live on CNBC TV, Tuesday, February 28.

“This foreign exchange is kept domestically for at least three months,” he added.

Airlangga explained that the amount saved will be 30 percent of the DHE receipts. Under this policy, he hoped that the results of natural resources will not only be exported but can be enjoyed domestically. “This is necessary for the resilience of the Indonesian economic system in the face of uncertainty.”

Airlangga also ensured that this regulation did not conflict with international regulations. He cited an example of Thailand's policy of withholding DHE for up to 360 days. He claimed that this new policy plan is supported by stakeholders, including the Ministry of Finance and Bank Indonesia. In fact, it has been discussed at the cabinet level as well as in a limited meeting.

“President Jokowi has given the initial permit and is now being drafted technically,” said Airlangga. "It is hoped that it will be issued soon and followed by a Regulation of the Finance Minister,” he added.

RIRI RAHAYU

Editor's Choice: Indonesia to Gradually Stap Exporting Gold

Click here to get the latest news updates from Tempo on Google News