"An article in this provision mentions the suspension of export services for those deviating from this regulation," he said at the Merdeka Palace in Jakarta on Monday.
President Prabowo voiced his firm stance while announcing the regulation, which requires exporters to deposit all their natural resource export DHE into domestic banks.
He emphasized that while his administration supports the growth and sustainability of exporters, it is essential for them to deposit their earnings into dedicated bank accounts, which can be used for various purposes.
Exporters will be allowed to exchange their DHE into rupiah within the same banks, he added.
He further clarified that the regulation permits exporters to use foreign currency to pay dividends and non-tax levies.
Additionally, the funds deposited in the special bank accounts can be used to purchase raw materials, supporting materials, and capital goods using foreign currencies.
The DHE deposited domestically can also be utilized to pay off loans taken to procure capital goods.
Under the new regulation, which will take effect starting March 1, 2025, the Indonesian government will require exporters to deposit 100 percent of the foreign exchange earned from natural resource exports into domestic banks within 12 months.
During a previous Cabinet meeting, President Prabowo affirmed that requiring natural resource exporters to deposit their foreign exchange earnings in domestic banks is a reasonable ask.
"It is reasonable for us to have exporters deposit their earnings in banks in Indonesia, considering that their businesses are supported by funds sourced from the Indonesian people," he said.
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Translator: Mentari D, Tegar Nurfitra
Editor: Rahmad Nasution
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