After Jokowi's Diteken PP, Bank Indonesia Releases Export Result Foreign Exchange Implementing Rules

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) is known to issue Bank Indonesia Regulation (PBI) Number 7 of 2023 concerning Export Result Foreign Exchange (DHE) and Import Payment Foreign Exchange.

Head of the BI Communications Department Erwin Haryono said that the latest policy was the implementation of the implementation of Government Regulation (PP) No. 36/2023 concerning DHE which was signed by President Joko Widodo (Jokowi).

"This continues the synergy between Bank Indonesia and the government," he said in a written statement quoted on Wednesday, August 2.

Erwin explained that this provision mainly regulates the principles and instruments for the placement of natural resources (SDA) and the instrument of monitoring arrangements.

"The provisions are effective on August 1, 2023," he said.

It was stated that Bank Indonesia determined the instrument for placing DHE SDA based on the principle:

a. In line with PP DHE SD

b. Utilization of DHE SDA for domestic needs

c. In the event that there is a need to determine the placement and utilization instruments for other SDA DHEs, the determination is made by Bank Indonesia by referring to the principles as referred to in letter a and letter b.

Based on this principle above, Bank Indonesia sets the instrument for placing DHE SDA covering:

Instrument 1: Special Accounts For DHE SDA In Foreign Varuta

Instrument 2: Banking instruments in the form of foreign exchange deposits

Instrument 3: Financial Instruments issued by the Indonesian Export Financing Agency (LPEI) in the form of a foreign value promissory note

Instrument 4: Bank Indonesia instrument in the form of a term deposit for conventional open market operations in foreign currencies at Bank Indonesia.

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Furthermore, the placement of DHE SDA in the four instruments above can be utilized by:

Exporters, as collateral for rupiah credit from Banks and/or LPEI and other utilization determined by Bank Indonesia (for Instrument number 1 to 4)

Exporter, for FX swap transactions with Bank (for Instrument number 1)

Bank, as an Underlying of Bank hedge swap transactions with Bank Indonesia and other utilizations determined by Bank Indonesia (for Instruments number 1, 2, and 4).

In order to support the effectiveness of the implementation of PP DHE SDA, Bank Indonesia supervises the income, placement, and utilization of the DHE SDA in question.

"This PBI revokes PBI Number 21/14/PBI/2019 concerning Foreign Exchange Export Results and Import Payment Foreign Exchange as last amended by PBI Number 24/18/PBI/2022 concerning the Second Amendment to Bank Indonesia Regulation Number 21/14/PBI/2019 concerning Foreign Exchange Export Results and Import Payment Foreign Exchange," Erwin concluded.