The Government Will Give Incentives For Exporters Who Leave DHE Domestically

Government and Bank Indonesia (Aris Nurjani / VOI)

JAKARTA. The government and Bank Indonesia (BI) are trying to bring foreign exchange of export products (DHE) by preparing a new Draft Government Regulation (RPP) to provide additional incentives so that exporters feel at home placing DHE in the country.

Minister of Finance Sri Mulyani Indrawati said that with current regulations, the government has provided incentives in the form of a final income tax rate discount (PPh) on interest on DHE placement instruments.

However, incentives still only apply to placing DHE in deposit instruments, not accommodating the provision of incentives for the placement of DHE in other instruments.

"So, this new RPP is to regulate incentives with a wider scope by adding instruments other than just deposits, the decline in PPh is only associated with deposit placements," Sri Mulyani explained in a press conference, Friday, November 3.

For information, in the current PP, the government has set a discount on the final income tax rate or DHE deposit interest rate. In a sense, the longer DHE is placed in the country, the lower the income tax rate will decrease and even 0 percent.

Sri Mulyani conveyed that the expansion of incentives for the placement of DHE in other instruments is still related to the retention and placement of these funds and this latest regulation will also link the amount of incentives with the period of placement of the DHE.

However, the state treasurer has not been able to reveal a more detailed incentive plan and the launch time of the RPP. This is through Government Regulation (PP) no. 36 of 2023 related to the income and placement of DHE natural resources (SDA) and instruments from BI in the form of a term deposit (TD) Valas.

"We are discussing this PP with the relevant ministries and it is hoped that it will be published soon," explained Sri Mulyani.

Similarly, the Governor of Bank Indonesia (BI) Perry Warjiyo emphasized that efforts to bring DHE to stay longer in Indonesia helped increase foreign exchange reserves.

"Well, for the DHE SDA (related regulations), we convey that it has helped increase foreign exchange reserves," said Perry.

According to Perry, since the implementation of the Term Deposit Valas DHE policy, the foreign exchange TD forwarded by banks from exporters to BI has reached 1.9 billion US dollars and is sufficient to help foreign exchange reserves which are in a downward trend due to global pressures such as recent conditions.

"Not all of them because it is PP No. 36/2023 is effective in November 2023 and to see that, the term is 3 months," he said.

Perry added that the synergy between BI and the government in implementing PP No. 36/2023 will continue to be improved to support Indonesia's economic stability and resilience.