Gold bars to be exempt from tariffs, White House clarifies
Indonesian President Prabowo Subianto announced a significant regulatory change aimed at bolstering the country's foreign exchange reserves, Reuters reported.
The new measure, which requires resource exporters to retain all proceeds locally for a minimum of one year, is projected to add a substantial $80 billion to Indonesia's forex reserves. This regulation excludes oil and gas exporters, who are mandated to keep 30% of their proceeds within the country, aligning with the existing rule established in 2023.
The president emphasized the importance of Indonesia's natural resources in enhancing national welfare through increased foreign exchange reserves and exchange rate stability.
The regulation, set to take effect on March 1, is part of Indonesia's broader strategy to promote domestic economic development and financial self-sufficiency. The move comes as a response to the observation that despite previous regulations, exporters preferred to store their earnings in foreign banks.
Under the new rule, exporters will have the flexibility to use their proceeds if they convert them into the local currency, rupiah, or for essential business operations like dividend distributions, raw material procurement, or loan repayments. The government has also announced the removal of taxes on capital gains from deposits in an effort to encourage compliance with the new mandate.
The central bank of Indonesia will continue to offer financial instruments to assist exporters in placing their funds, as confirmed last month by the country's chief economic minister, Airlangga Hartarto.
This regulatory change is part of a series of economic policies aimed at strengthening Indonesia's economic foundations and ensuring the long-term benefits of its resource exports for the nation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.