Economist: DHE Policy Help Stabilize Rupiah Exchange Rate

Illustration. (Photo: Doc. Antara)

JAKARTA - Paramadina University economist Wijayanto Samirin conveyed that the Natural Resources Export Result Foreign Exchange (DHE SDA) policy has helped stabilize incoming capital flows (capital inflow), foreign exchange reserves, and the Rupiah exchange rate.

As is known, President Prabowo Subianto's administration has set a policy to require 100 percent DHE SDA to be stored domestically for one year.

"This policy will help stabilize capital inflows, cadevs and the Rupiah exchange rate," said Wijayanto, quoted by Antara in Jakarta, Friday, April 25.

In addition to increasing foreign exchange reserves that have an impact on the stability of the rupiah and the banking sector, according to him, this policy also provides operational certainty for exporters in the country.

"This policy also provides operational certainty for exporters," said Wijayanto.

On the other hand, he considered that the 100 percent DHE policy would not be enough to deal with global dynamics, along with the current account deficit that Indonesia continues to experience.

In addition, there are challenges in the form of a trade surplus with the United States (US) which has the potential to run low due to Donald Trump's tariff policy.

He recommended taking additional steps, among others, to eradicate smuggling, which is a source of foreign exchange "corruption".

Second, increasing transactions between countries with local currency (local currency), and third, expanding our export market through the Free Trade Agreement (FTA) with various countries.

On this occasion, he explained several factors that pushed for an increase in cadev for the March 2025 period, including an increase in foreign debt and a trade balance surplus, the effectiveness of the conversion of trade surplus made cadev improve, with the implementation of the DHE SDA policy.

Indonesian President Prabowo Subianto has set a policy regarding the placement and utilization of Natural Resources Export Result Foreign Exchange (DHE SDA) of 100 percent in storage in the country.

Along with DHE's policy, Indonesia's foreign exchange reserves were recorded at 157.1 billion US dollars or touched all time high (ATH) at the end of March 2025, or equivalent to financing 6.7 months of imports or 6.5 months of imports with government foreign debt payments.

The placement of domestic DHEs is not only maintaining foreign exchange reserves, but also strengthening the role of the export sector as a source of development financing.

The presence of instruments such as SVBI and SUVBI makes it easier for exporters to store foreign exchange without losing access to liquidity, while banks receive stronger credit guarantees.

In addition, DHE's policy is not only about foreign exchange or exchange rates, but also about the new direction of the national economy, from an economy that depends too much on foreign capital flows, towards an internal power-based economy, especially SDA exports.

With more controlled foreign exchange liquidity, more aggressive banks distribute productive credit, as well as maintained monetary stability, Indonesia has the opportunity to strengthen economic independence without sacrificing growth.