Foreign Exchange Export Results 8 Billion US Dollars Still Parking At LN, Government Will Evaluate Rules

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto. (Photo: Doc. ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that currently around 8 billion US dollars (US) of export foreign exchange (DHE) is still stored abroad.

Therefore, he said, his party will continue to evaluate the Foreign Exchange Policy on Natural Resources Export Results (SDA).

"We will relax DHE, because DHE has not been maximal in the past three months, and we can still see the potential of 8 billion US dollars from this foreign exchange which is still parked elsewhere (outside the country)," said Coordinating Minister Airlangga, quoted from ANTARA, Monday, November 6.

Regarding exports and imports in the contraction third quarter of 2023, Airlangga explained that government policies continue to be directed to increase exports and imports. For example, the government allows the manufacturing sector to be able to export into more than 50 percent.

"Of course we also see that the demand (import exports) itself is relatively weakened, therefore some of the policies carried out by the government, including domestic policies, are allowing the manufacturing sector, which usually exports can go into 50 percent, this is relaxed by more than 50 percent," he said.

Meanwhile, based on the Central Statistics Agency (BPS), Indonesia's export growth recorded a contraction of 4.26 percent and imports contracted 6.18 percent.

On the same occasion, the Minister of Finance of the Republic of Indonesia Sri Mulyani Indrawati said that the performance of Indonesia's manufacturing sector, which is currently growing positively, will be able to balance the weakening of exports and imports.

"Manufacturing is quite balanced between domestic demand and exports, so domestic demand that grows healthy will be a support for export compensation or weakening external demand," said Sri Mulyani.

The increasing domestic demand for the manufacturing industry is supported by the metal goods industry which includes computers, electronic goods, optics, and electrical equipment which grew 13.68 percent year on year (yoy).

Then, the basic metal industry which is 10.86 percent yoy, the transportation equipment industry grew 7.31 percent yoy, and the non-metal goods industry grew 7.20 percent yoy.

In addition, the Purchasing Managers' Index (PMI) of Indonesian manufacturing in October was still maintained at an expansionary level, namely 51.5.

Despite weakening, this achievement indicates that Indonesia's manufacturing expansion has been maintained in a row over the past 26 months.

Nevertheless, the Minister of Finance said he would remain vigilant about the weakening of export and import performance. In the future, the government will continue to monitor the economic outlook in developed countries.