The Indonesian government plans to revise the regulations on foreign exchange (DHE) generated from the exploitation and processing of natural resources (SDA). Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the revision, following President Prabowo Subianto's directive, will extend the mandatory period for exporters to hold DHE SDA within Indonesia. According to Airlangga, the President’s directive aims to extend this holding period beyond the current three-month requirement. “The President has directed an extension beyond just three months,” Airlangga stated following a limited coordination meeting at the Coordinating Ministry for Economic Affairs on Sunday (03/11/2024). However, he did not specify the new duration, only indicating that it would be longer, allowing the funds to be used as working capital.
Currently, Government Regulation No. 36 of 2023 mandates exporters to retain at least 30% of DHE SDA domestically for three months, applicable to exports valued at a minimum of USD 250,000. Incentives are available to help exporters maintain profitability despite the DHE SDA placement requirement. Additionally, the types of SDA export commodities subject to this DHE placement obligation are outlined in Minister of Finance Regulation No. 272/2023, which took effect on August 1, 2023. The government expects these revisions to support domestic economic stability by ensuring that foreign exchange earnings from natural resources contribute to national economic growth.
