Indonesian President Prabowo Subianto has signed a regulation requiring all non-oil and gas exporters to retain their earnings within the country for at least one year, a move aimed at boosting foreign exchange reserves by $80 billion.
Speaking at a televised press conference, Prabowo emphasized that Indonesia’s natural resources must benefit the people by supporting domestic development, increasing forex reserves, and ensuring exchange rate stability. The new rule, effective March 1, expands on a 2023 regulation that required exporters to keep 30% of their proceeds onshore, as many still preferred to park their earnings in foreign banks.
Under the revised policy, exporters can access their funds if converted into rupiah or used for business operations, such as dividend payments, raw material procurement, or loan repayments. Oil and gas exporters, however, will continue to follow the existing rule of keeping 30% of proceeds in Indonesia.
Prabowo’s move aligns with earlier statements from his chief economic minister, Airlangga Hartarto, who announced that the central bank would provide financial instruments to encourage compliance, while the government plans to eliminate capital gains tax on deposits held domestically.
