THE GOVERNMENT will extend the placement time for foreign exchange funds from export proceeds (DHE) from natural resources, not just three months in accordance with the current regulations. This is to maintain the stability of the rupiah exchange rate.
“The President’s direction regarding foreign exchange from exports, we are currently preparing. So it has been extended, not just three months. The PP (Government Regulation) is being prepared and discussed,” said Coordinating Minister for Economic Affairs Airlangga Hartarto in a Limited Coordination Meeting press conference regarding the discussion. program Quick Win Ministry of Economic Affairs, Jakarta, Sunday (3/11).
In other words, he continued, the government will require exporters of natural resource products to place their export proceeds longer in the Indonesian financial system. In the current regulations, the government requires exporters to place export proceeds for a minimum of three months in the country.
The policy of placing DHE in the Indonesian financial system is one of the steps taken to maintain the stability of the rupiah exchange rate.
From Bank Indonesia data, as of August 20 2024, term DHE’s foreign currency deposits are in the range of US$2.1 billion to US$2.2 billion.
On the other hand, the government is also increasingly monitoring the implementation of these policies more intensely. The Directorate General of Customs and Excise at the Ministry of Finance noted that in that period there were 111 export companies that did not place DHE in the national financial system.
Of that number of companies, 43 of them have shown good faith in fulfilling the DHE SDA provisions, while 69 export companies have not fulfilled the provisions. Because of this, the Directorate General of Customs and Excise blocked export services for these companies. (E-2)
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**Interview with Coordinating Minister for Economic Affairs, Airlangga Hartarto**
**Editor:** Thank you for joining us today, Minister Hartarto. Recent forecasts suggest that the Indonesian Rupiah is expected to trade at approximately 15,943.25 by the end of this quarter. How do you interpret this projection in light of your government’s recent measures to stabilize the currency?
**Minister Hartarto:** Thank you for having me. The projection reflects market expectations and highlights the importance of our ongoing efforts to stabilize the rupiah. By extending the placement time for foreign exchange funds from export proceeds—known as DHE—we aim to provide a buffer for our currency and support sustainable economic growth.
**Editor:** Could you tell us a bit more about the decision to extend the DHE placement time? What motivated this change, and how do you believe it will impact the rupiah?
**Minister Hartarto:** The extension undoubtedly aligns with our priority to maintain currency stability amidst global economic fluctuations. The President has emphasized the need for proactive measures in foreign exchange management, especially when it comes to managing revenues from our natural resources. By moving beyond the previous three-month window for DHE, we aim to boost liquidity and confidence in the rupiah.
**Editor:** What specific outcomes do you anticipate from this policy change, and how do you see it affecting exporters and overall economic activity?
**Minister Hartarto:** We hope this policy will encourage exporters to reinvest their earnings domestically, thereby fostering greater economic activity. With a stable rupiah, businesses can plan better and individuals will likely feel more confident in their financial decisions. A robust export sector is vital for our economic health, and we believe this measure will help achieve that.
**Editor:** As we look ahead, what other steps can we expect from the government to further enhance the stability of the rupiah and the country’s economic position?
**Minister Hartarto:** We will continue to evaluate our monetary and fiscal policies to ensure they align with global economic trends. Additionally, we are in discussions on enhancing regulations around export proceeds and ensuring there are incentives for exporters to channel those funds back into the economy, which will ultimately support the rupiah.
**Editor:** Thank you, Minister Hartarto, for sharing your insights. It certainly sounds like the government is taking decisive action to support the Indonesian economy and the rupiah.
**Minister Hartarto:** Thank you for having me. We remain committed to transparent and effective economic management for the benefit of all Indonesians.
