On Feb. 17, IDN GVT launched policy on mandatory retention of forex.
IDN GVT announced policy aimed at strengthening the national economy by requiring retention of forex earnings from natural resource exports (DHE SDA) within Indonesia.
Key Points
Exporters in mining (excluding oil and gas), plantation, forestry, fisheries sectors must deposit 100% of their foreign exchange earnings into Indonesia’s financial system.
The funds must be kept for 12 months in a special account at a national bank; meanwhile, oil and gas exporters will continue to follow the existing regulation.
Despite mandatory retention, exporters will have flexibility in using DHE SDA; they will be allowed to convert funds into IDR at the same bank for operational expenses.
They can use the funds for taxes, dividends, procurement, and loan repayments.
Exporters who fail to comply will face penalty, including suspension of export services.
