Jakarta. Finance Minister Purbaya Yudhi Sadewa said Tuesday the long-awaited revision to Indonesia’s export proceeds rule for natural resources is in its final stage, with issuance targeted for April after accommodating sector-specific exemption requests.

The government is currently revising the existing regulation designed to secure foreign exchange liquidity, strengthen reserves, and stabilize the rupiah amid global uncertainty.

Under the draft policy outlined in the government’s foreign exchange liquidity strengthening strategy, exporters of natural commodities will be required to place their foreign exchange proceeds in state-owned banks. The rule also introduces a major shift in conversion requirements, lowering the mandatory conversion of foreign exchange earnings into rupiah from 100% to a maximum of 50%.

The adjustment is expected to give exporters more flexibility in managing foreign currency needs, while ensuring a steady supply of dollars in the domestic market.

The delay in releasing the regulation stems from technical adjustments approved by President Prabowo Subianto, aimed at balancing policy fairness with the government’s push to retain export earnings onshore.

“There are minor revisions because some parties requested exemptions and the president agreed. This remains aligned with our intention to implement the policy,” Purbaya said in Jakarta.

Purbaya stressed that export activities based on domestic resources should directly support domestic financial liquidity, underscoring the broader goal of monetary sovereignty.

“The objective is to retain domestic funds. We should not be borrowing domestically, using domestic resources, while the proceeds are parked overseas,” he said.

Add as a preferred source on Google +