Chairman of the council's supervisory board, Arsjad Rasjid, noted that the policy, outlined in Government Regulation No. 8 of 2025, serves as a protective measure for Indonesia against severe impacts of potential monetary crises similar to the one experienced in 1998.
"We should focus on the policy's benefits to this nation instead of using a negative point of view. This policy can help us solidify our economy by keeping the rupiah exchange rate stable," he remarked after attending the Indonesia Economic Summit 2025 in Jakarta on Tuesday.
Rasjid underlined that other countries, such as Malaysia and Thailand, have successfully implemented similar policies.
He affirmed that this kind of policy is anticipatory in nature, serving as an instrument to strengthen the foundation of the national economy.
He further stated that while exporters are required to rely on domestic banks, the government aims to maintain the flexibility of the use of their domestically deposited foreign exchange earnings.
"The funds can be used for paying dividends, running businesses, and other purposes, as long as they remain circulating domestically," he explained.
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the government has projected a rise of US$80 billion in Indonesia's foreign exchange reserves due to the regulation's enforcement.
Earlier, on Monday (February 17), President Prabowo Subianto explained that the regulation would require exporters to deposit 100 percent of the foreign exchange earnings from natural resource exports into domestic banks within a year following the policy's planned rollout on March 1 this year.
Despite this restriction, he stated that exporters would still be allowed to pay dividends and non-tax levies, as well as purchase raw materials, supporting materials, and capital goods using foreign currencies.
The foreign exchange deposited domestically can also be utilized to pay off loans taken to procure capital goods.
Prabowo vowed to impose export suspensions on companies found deviating from this state directive.
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Translator: Bayu S, Tegar Nurfitra
Editor: Azis Kurmala
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