Bank Indonesia (BI) Governor Perry Warjiyo announced a new policy requiring 100% of export proceeds (DHE) from natural resources to be kept in Indonesia’s financial system for 12 months. This initiative, outlined in Government Regulation No. 8 of 2025, aims to enhance foreign exchange reserves, stabilize the rupiah (IDR), and strengthen economic resilience amid global uncertainties. By increasing domestic dollar (USD) liquidity, the policy is expected to reduce exchange rate volatility and support macroeconomic stability. With this measure, Indonesia’s foreign exchange reserves could rise significantly from USD 13 billion (IDR 203 trillion) to USD 80 billion (IDR 1,248 trillion) by the end of 2025, providing a stronger buffer against external challenges such as high U.S. interest rates, China’s economic slowdown, and geopolitical tensions.
Additionally, exporters will still have flexibility to use DHE for tax payments, dividends, and essential imports, ensuring smooth business operations. Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that this policy is part of Indonesia’s broader strategy for economic independence, ensuring sufficient financial resources to navigate global pressures. To encourage compliance, the government will offer attractive incentives, including competitive tax policies and higher deposit interest rates. While some exporters have concerns about financial flexibility, this policy ultimately strengthens Indonesia’s economy, promoting sustainable growth and stability.
