Jakarta, Indonesia Sentinel — In a bold move aimed at bolstering Indonesia’s financial resilience, President Prabowo Subianto has mandated that 100% of export proceeds in U.S. dollars must be kept within the country for a full year. The new regulation, set to take effect on March 1, 2025, marks a significant shift in Indonesia’s approach to managing its export earnings.
This policy requires exporters to deposit all their export proceeds into Indonesian banks, ensuring that the funds remain in the domestic financial system for at least 12 months. The regulation is currently undergoing adjustments to align with updates to Government Regulation (PP) No. 36 of 2023.
A Logical and Necessary Step of Indonesia Export Rules
Addressing the new mandate during a Cabinet Plenary Session on January 22, 2025, Prabowo emphasized the fairness of the policy. “It is only logical,” he stated, “for businesses operating in Indonesia and benefiting from local resources to keep their earnings in Indonesian banks.”
He further explained that many exporters rely on loans from state-owned banks to finance their operations. Given this reliance on resources sourced from the Indonesian people, it is reasonable to expect them to store their export earnings within the country’s banking system.
Prabowo assured that the government is working to finalize the necessary regulations, which will be implemented within a month. “This is a logical and reasonable policy,” he reiterated, emphasizing the importance of prioritizing national interests in the management of export proceeds.
New Indonesia Export Rules for State Bank Borrowers
The policy also extends to companies that borrow from state-owned banks. Prabowo announced that such businesses would soon be required to place their export revenues exclusively in Indonesian banks. This additional measure aims to strengthen the domestic banking sector and ensure that export proceeds contribute to the nation’s economic stability.
Implications for Indonesia’s Economy
Prabowo’s approach reflects a growing emphasis on maintaining financial sovereignty and reducing reliance on foreign banking systems. By ensuring that export proceeds remain within Indonesia, the government aims to increase liquidity in the domestic financial market and provide a stable foundation for economic growth.
While the new regulation may impose additional compliance burdens on exporters, it aligns with Indonesia’s broader goals of strengthening its financial infrastructure and fostering economic independence.
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Looking Ahead
As the March 1 deadline approaches, businesses are urged to prepare for the policy changes and adapt their financial practices accordingly. The harmonization of existing regulations with the new mandate will be critical in ensuring a smooth transition for exporters and financial institutions alike.
President Prabowo’s firm stance on export revenue management underscores his commitment to safeguarding Indonesia’s economic sovereignty. The success of this policy could set a precedent for other resource-rich nations seeking to maximize the domestic benefits of their export earnings.
(Becky)
