Minister of Economic Affairs Airlangga Hartarto has announced that the new regulations on Export Earnings in Natural Resources (DHE SDA) will require a full-year deposit, which is expected to boost foreign exchange reserves by a whopping $90 billion. The regulations are set to mandate a 100% deposit for a year, potentially exceeding $90 billion in the United States by the end of the year.
Airlangga made these statements at the Ali Wardhana Building on Tuesday (21/1/2025). He emphasized that the new DHE SDA regulations are still in the works and have been finalized by the government, awaiting inclusion in the revised Government Regulation (PP) currently being drafted. Coordination with the central bank, financial services authority, and banking sector will follow once harmonization is achieved.
On a positive note, Airlangga mentioned that the government has engaged with relevant stakeholders concerning the new policy. He even claimed that there has been no opposition from business owners, stating, “We have communicated with all stakeholders.”
### Impact on Foreign Exchange Reserves
The Government Regulation No. 22 of 2024 on Income Tax Treatments for DHE SDA in certain monetary and financial instruments in Indonesia provides tax incentives for exporters who park their dollars in domestic banks. The tax rates vary based on the placement period, with rates of 0% for placements over 6 months, 2.5% for 6-month placements, 7.5% for 3 to less than 6-month placements, and 10% for 1 to less than 3-month placements.
Despite the longer deposit duration required by the government (now a minimum of one year compared to the previous three months), Airlangga assured exporters of more attractive interest rates. However, he hinted that exporters may not be obligated to keep at least 50% of their DHE SDA domestically, although the exact percentage remains undisclosed.
### New Instruments for Deposit Placement
To accommodate the new regulations, Bank Indonesia (BI) will introduce two new instruments for DHE SDA placements: BI Foreign Exchange Securities (SVBI) and BI Foreign Exchange Sukuk (SUVBI). Currently, BI only offers foreign exchange time deposit instruments. This mechanism allows exporters to utilize foreign exchange time deposits in banks, which can then be transferred to BI for further investment.
As the government works towards implementing these changes, exporters and stakeholders are advised to stay informed about the evolving landscape of DHE SDA regulations to make informed decisions about their financial strategies. The potential impact on foreign exchange reserves and the economy at large underscores the significance of these developments in Indonesia’s economic landscape.
