Airlangga Reveals Foreign Exchange Export Results Can Be Used For Operations To Tax Payments

Press Conference on PP DHE SDA (Photo: Aris Nurjani/VOI)

JAKARTA - President Prabowo Subianto officially issued a Government Regulation (PP) regarding the new provisions for the placement of Natural Resources Export Result Foreign Exchange (DHE) and will take effect on March 1, 2025.

The regulation is contained in Government Regulation (PP) number 8 of 2025 concerning Export Result Foreign Exchange from business activities, management, and natural resource processing.

Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the government continues to strive to maintain the continuity of exporters' businesses by ensuring that they can take advantage of foreign exchange export results for several operational purposes.

Airlangga explained that what was allowed was such as exchanging to rupiah at the same bank for operational activities, paying tax obligations in the form of foreign currency, non-tax state revenues, royalties and other obligations to the government in accordance with the legislation.

"Dividend payments are in the form of foreign currency, as well as procurement of goods, services, raw materials, auxiliary materials or capital goods that are not yet available, and yet some are available with certain domestic specifications in foreign currency, then payments for loans for the procurement of capital goods in foreign currency form," he said at a press conference related to foreign exchange. export results, Monday, January 17.

In addition, Airlangga conveyed that the Government, Bank Indonesia, and OJK will also provide support through various incentives, such as the 0 percent PPH rate for interest income from the placement of DHE SDA, which is usually subject to a tariff of 20 percent.

In addition, DHE acceptance instruments can also be used as credit collateral, underlying foreign exchange swap transactions between customers and banks, and hedge swaps between banks and BI.

Furthermore, fund storage can be guaranteed by certain collateral such as in the form of demand deposits, deposits, or savings that meet certain requirements will also not be calculated within the maximum credit payment limit (BMPK).

Airlangga conveyed that regulations related to DHE SDA will take effect on March 1, 2025, with Bank Indonesia will issue the latest Bank Indonesia Regulation (PBI) on changes to PBI number 7 of 2023 concerning foreign exchange of export and foreign exchange for import payments as well as amendments to the Governor's Council Member Regulation (PADG) number 4.

In addition, the Ministry of Finance will also amend the Decree of the Minister of Finance (KMK) number 272 of 2023 concerning the determination of the type of natural resource export goods with the obligation to include foreign exchange of export results into the Indonesian financial system.

Meanwhile, the OJK will adjust the Circular Letter of the Financial Services Authority (SE OJK) to commercial banks regarding the use of DHE SDA as collateral and back-to-back loans and to the Indonesian Export Financing Agency (LPEI) regarding the detailed form for receiving DHE SDA.

"For this implementation, at Bank Indonesia there will be adjustments to the digital system, as well as at the Director General of Customs and Excise, as well as the banking system coordinated by the OJK. Now, socialization and technical guidance continue to be carried out both to exporters and banks," he explained.