Bahana Sekuritas Projecting Indonesian Foreign Exchange Reserves Can Increase 80 Billion US Dollars

Photo: Doc. Antara

JAKARTA - PT Bahana Sekuritas projects that foreign exchange reserves could increase by US$80 billion if all exports in US dollars could be returned to the country.

The export results in question mostly come from commodities such as coal, palm oil, and nickel,

"Thus, the re-implementation of the obligation for exporters to repatriate and report exported US dollars is considered to be strengthening foreign exchange reserves," explained Bahana Sekuritas' management in an official statement, quoted from Antara, Friday, September 23.

Indonesia's foreign exchange reserves position at the end of August 2022 was recorded to remain high, amounting to 132.2 billion US dollars or relatively stable compared to the position at the end of July 2022 which was also 132.2 billion US dollars.

The mandatory requirements for exporters were abolished in 2020 to help exporters affected by the initial fall in commodity prices, but Indonesia's better export performance has recently forced thoughts on the easing.

According to Bahana Sekuritas, the absence of these requirements has been blamed for the thin supply of US dollars in the domestic market, as foreign exchange reserves have not increased as expected with the economy recording a large trade surplus over 28 consecutive months.

Meanwhile, Bank Indonesia (BI) will also adjust sanctions based on industry, thus distinguishing between Natural Resources (SDA) exporters and the manufacturing sector.

Previously, the Deputy Governor of BI Juda Agung stated that for exporters who do not place domestic Natural Resources Export Result Exchange (DHE), the sanctions imposed are in the form of conveying the results of supervision by BI, while for Non-SDA the form is a suspension of exports.

He stated that the two sanctions had been submitted to the Directorate General of Customs and Excise of the Ministry of Finance to be carried out.

This year, there are a number of exporters, both SDA and Non-SDA, who have been subject to sanctions. Sanctions are given due to various kinds of exporter violations, namely that they have not opened a special account for SDA, DHE has not been received even though it already has an account, to the lack of delivery of DHE from what should have been placed.