DHE Policy Assessed Strengthening Foreign Exchange Reserves And Stabilizing Rupiah

Dollars and rupiah (photo: Antara)

JAKARTA - Paramadina University economist Wijayanto Samirin views that the 100 percent foreign exchange policy for natural resource exports (DHE SDA) in the country for one year will strengthen foreign exchange reserves as well as stabilize the rupiah exchange rate.

This DHE policy is very appropriate. It will strengthen foreign exchange reserves and stabilize the rupiah. At the same time, the business is not disrupted, because the foreign exchange (valus) that is locked can still be used for their business interests (exporters), "said Wijayanto quoting Antara.

After the government issued Government Regulation (PP) Number 8 of 2025, recently Bank Indonesia (BI) has issued BI Regulation (PBI) Number 3 of 2025 concerning Amendments to PBI Number 7 of 2023 concerning Export Result Foreign Exchange (DHE) and Import Payment Foreign Exchange (DPI) which is effective from March 1, 2025.

Previously, BI had also announced the addition of new instruments for the placement of DHE SDA, namely Bank Indonesia Foreign Exchange Securities (SVBI) and Sukuk Valuta Foreign Bank Indonesia (SUVBI). With this instrument, it will increase the option for exporters to place DHE SDA.

(SVBI and SUVBI instruments for DHE SDA) are positive. This can keep the issued DHE liquid, meaning that entrepreneurs can easily use it but also facilitate supervision by BI," said Wijayanto.

When contacted separately, the Head of the Center of Macroeconomics and Finance Indef M. Rizal Taufikurahman also considered that the new DHE SDA policy had great potential in strengthening the rupiah exchange rate, increasing foreign exchange reserves, and strengthening Indonesia's economic resilience to external shocks.

With the obligation to place DHE SDA in the country, domestic foreign exchange supply is expected to increase significantly. This increase in foreign exchange supply, said Rizal, can strengthen the rupiah exchange rate and maintain stability.

"This means that the DHE policy has an impact on increasing the competitiveness of the foreign exchange sector and strengthening the rupiah exchange rate. The strengthening of the rupiah exchange rate against the US dollar encourages economic stability to be maintained amidst the increasingly challenging purchasing power conditions," he said.

Even so, he reminded that the success of implementing the DHE SDA policy really depends on the level of exporter compliance, the competitiveness of domestic foreign exchange investment instruments, as well as good coordination between the government, BI and business actors.

"If challenges such as exporter resistance and potential policy avoidance can be overcome, this policy can be a game changer in the management of national foreign exchange," said Rizal.

In order for the DHE SDA policy to be effective, Rizal suggested a number of recommendations. First, it is necessary to increase incentives for exporters by offering competitive interest rates on DHE placement instruments such as SVBI and SUVBI.

Second, providing foreign exchange-based export credit with low interest. In addition, thirdly, a more flexible policy in the term of placement, for example with a gradual withdrawal option.

"Finally, fourth, it is necessary to diversify financial instruments, such as foreign exchange bonds issued by the government or BUMN, hedging derivative instruments to help exporters manage the risk of exchange rates," said Rizal.