Export Earnings Rules May Raise Forex Reserves Up to US$100bn: Airlangga
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28 July 2023 22:41 WIB
TEMPO.CO, Jakarta - Indonesian Coordinating Minister for the Economy, Airlangga Hartarto, assessed that the new policy regarding export earnings (Devisa Hasil Export - DHE) could increase the country’s foreign exchange reserves. As stipulated in Government Regulation (PP) No. 36 of 2023, exporters of natural resources and derivative products are mandated to put a minimum of 30 percent of their total export proceeds in the domestic financial system for at least three months.
“We can get US$60 billion to US$100 billion (in a year),” Airlangga said in a press conference at the Coordinating Ministry for Economic Affairs Office on Friday, July 28, 2023.
Airlangga explained that the regulation applies to four natural resources sectors, namely plantation, mining, forestry, and fisheries. Until now, the four sectors have the potential of up to US$203 billion or 69.5 percent of the total export value.
In detail, he said the mining sector makes the highest contribution worth US$129 billion or around 44 percent, thanks to coal commodity which contributes around 36 percent.
After the mining sector, the plantation sector amounted to US$55.2 billion or 18 percent, then the forestry sector US$11.9 billion or 4.1 percent, and the fishery sector US$6.9 billion.
This new policy will take effect from August 1, 2023. However, Airlangga ensured this won’t be applied to micro, small, and medium enterprises (MSMEs). “This rule applies to those with export document worth at least US$250,000. It is not mandatory for those having below the figure,” he said.
Airlangga claimed PP 36 of 2023 would encourage domestic sources of financing and economic growth while increasing investment and the quality of natural resources. “It’s also to maintain macro stability and the domestic financial market,” he said.
RIRI RAHAYU
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