Indonesia Requires 100 Percent Domestic Placement of Natural Resource Export Earnings

Switzerland, VIVA – The Indonesian Chamber of Commerce and Industry (Kadin) has spoken out regarding the government’s plan to require exporters to keep 100% of their foreign exchange earnings (DHE) from natural resources in Indonesia for one year.

Kadin has urged the government to consider exporters’ liquidity and investment funding needs.

Anindya Novyan Bakrie, Chairman of Kadin Indonesia, stated that this policy could positively impact foreign exchange reserves and strengthen the rupiah against the US dollar.

“Kadin supports all government efforts to strengthen the national economy. The goal of holding DHE is to stabilize the rupiah’s value and reduce volatility, which we agree with. Especially since our foreign exchange reserves are not that large,” Bakrie said at the World Economic Forum in Davos, Switzerland on Jan (21).

However, Bakrie emphasized that exporters’ cash flow and liquidity must also be taken into account. Exporters often need foreign currency to import raw materials and capital goods for investment, so liquidity should be maintained to ensure they are not disadvantaged.

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[dok. Ketua Umum Kadin Indonesia, Anindya Bakrie, saat menjadi panelis di Forum Ekonomi Dunia, Davos, Swiss, Selasa, 21 Januari 2025]

Photo :

• VIVA.co.id/Mohammad Yudha Prasetya

“Exporters are also importers, particularly those in the manufacturing sector,” he explained.

Bakrie then highlighted that exporters need rupiah for domestic expenses. Therefore, with the DHE being held for a year, exporters should be offered solutions that allow them access to the funds they need.

“If businesses face liquidity issues and lack funds for investment and expansion, exports will be affected,” he said.

As partners of the government, businesses, including exporters, play a vital role in national development, achieving economic growth targets of 8%, expanding operations, and creating new jobs.

Currently, the private sector plans to increase its involvement in infrastructure development, agriculture for food security, and upstream to downstream industries.

To support this, Bakkrie hopes that government policies will not hinder large-scale collaborations between the private sector, state-owned enterprises (SOEs), and the government.

“We're confident that the government will craft policies that benefit all parties to support job creation, stability, and economic growth,” he added.

He also expressed hope that the incentives being prepared by the government in the revised DHE regulation would provide balanced benefits. Foreign reserves should increase, but exporters must not be adversely affected.

As of Wednesday, January 20, 2025, the rupiah was trading at IDR 16,322 per US dollar. Indonesia’s foreign reserves stood at $155.7 billion in December 2024, up from $135.9 billion in 2020.

In comparison, Thailand’s and Singapore’s reserves for the same period were $237 billion and $506.7 billion, respectively.

In 2024, Indonesia’s exports reached $264.7 billion, a slight increase from 2023 but lower than the $292.9 billion recorded in 2022 during the pandemic.

By comparison, Singapore’s exports in 2024 totaled $515 billion, Vietnam’s $453.7 billion, Malaysia’s $312.96 billion, and Thailand’s $280 billion.

Halaman Selanjutnya

As of Wednesday, January 20, 2025, the rupiah was trading at IDR 16,322 per US dollar. Indonesia’s foreign reserves stood at $155.7 billion in December 2024, up from $135.9 billion in 2020.