2 days ago
21
March 21, 2025 | 08:45 pm
TEMPO.CO, Jakarta - President Prabowo Subianto has mandated that exporters retain 100 percent of their export earnings from natural resources in the domestic financial system for one year. He stated that this measure is expected to generate US$10 billion, or approximately Rp 165 trillion (based on an exchange rate of Rp 16,500 per US dollar), annually for the nation
"As this regulation takes effect on March 1, it is projected that approximately US$80 billion will be repatriated this year," Prabowo said during a Cabinet Meeting at the Merdeka Palace, Central Jakarta, as broadcast via the Presidential Secretariat's YouTube channel on Friday, March 21, 2025."
Prabowo clarified that the mandate applies to various business entities, including companies receiving credit or loans from state-owned banks, those holding Business Use Permits (HGU), companies managing industrial forest plantations (HTI), and all other export-oriented enterprises. "Those receiving credit are obligated to deposit 100 percent of their earnings within the Republic of Indonesia," he emphasized.
The new regulation is formalized in Government Regulation No. 8 of 2025, which amends Government Regulation No. 36 of 2023 regarding Export Earnings (Devisa Hasil Ekspor) from the Management, Administration, and/or Processing of Natural Resources. This policy replaces the previous requirement, which stipulated that exporters park a minimum of 30 percent of their Export Earnings from Natural Resources for a minimum period of three months.
Coordinating Minister of Economic Affairs Airlangga Hartarto stated that the government will provide a range of incentives to exporters, including those related to the banking sector, such as arrangements for cash collateral.
"The banking sector will provide cash collateral facilities, and the use of cash collateral will not be included in the Maximum Credit Limit (BMPK) nor reduce the gearing ratio," said Airlangga at the Presidential Palace Complex, Central Jakarta, on Tuesday, January 21, 2025."
Bank Indonesia Governor Perry Warjiyo stated that the central bank has adjusted the swap rate to enhance its competitiveness. Furthermore, Bank Indonesia is developing various attractive interest rate instruments and incentives within the overnight index swap market for reference periods of one, three, and six months. "Liquidity and associated risks are ensured to be adequately managed," he affirmed.
Eka Yudha contributed to the writing of this article.
Editor's Choice: PT Pupuk Indonesia Will Build a Plant in Fakfak, with an Investment Value of Rp 116 Trillion
Near Bankrupt After Carrying Out Jokowi's Orders
27 menit lalu
Four state-owned construction companies that were tasked with implementing Jokowi's infrastructure projects are on the brink of bankruptcy.
Palace Downplays Pig's Head Delivery to Tempo: Non-Threat to Media
2 jam lalu
Head of the Presidential Office Hasan Nasbi emphasized the government's desire to remain uninvolved in the incident of a pig's head delivery to Tempo.
Prabowo Asks Companies to Raise Eid Bonus for Online Motorcycle Taxi Drivers
5 jam lalu
President Prabowo has asked online motorcycle taxi application companies to increase the amount of Eid al-Fitr allowance for their partner drivers.
Prabowo on Indonesian National Team's Loss: Team and Coach Are Still New
6 jam lalu
President Prabowo understands the Indonesian national team's loss against Australia yesterday because the team and coach are still new.
Prabowo Highlights Food Security Amid Stock Market Volatility
6 jam lalu
Indonesian President Prabowo Subianto asserted that food prices are stable and under effective control ahead of Eid al-Fitr.
Today's Top 3 News: Prabowo to Meet Investors After IHSG's Tuesday Slump
1 hari lalu
Here is the list of the top 3 news on Tempo English today.
Congo Plans Cobalt Export Quotas, Partnership with Indonesia to Tackle Glut
1 hari lalu
Cobalt, a crucial component in batteries for electric vehicles and mobile phones, has seen its prices fall to historically low levels .
Russian Ambassador Discloses Planned Meeting Ahead of Prabowo's Visit to Russia in June
1 hari lalu
The Russian Ambassador reveals plans for a meeting with Indonesian officials before Prabowo's upcoming visit to Russia.
Prabowo Establishes Waste Management Task Force; Greenpeace Emphasizes Reduction at Source
1 hari lalu
Greenpeace assesses that the approach which still focuses on technology and waste management downstream has not been able to resolve the garbage crisis.
Prabowo to Meet Investors After IHSG's Tuesday Slump
2 hari lalu
According to Luhut, a 6 percent plunge in the IHSG could happen at any time and it happens to coincide with Indonesia
