BI Will Add New DHE SDA Placement Instruments

BI Governor Perry Warjiyo (Photo: dock. Antara)

JAKARTA - The government has officially issued Government Regulation (PP) number 8 of 2025 concerning Export Result Foreign Exchange (DHE) from business activities, management, and natural resource processing (SDA) which will take effect on March 1, 2025.

Governor of Bank Indonesia (BI) Perry Warjiyo said that his party would add instruments for the placement and utilization of Natural Resources Export Result Foreign Exchange (DHE) in line with President Prabowo Subianto's new policy.

"Bank Indonesia will expand and expand exporter and banking instruments that can be used to place foreign exchange reserves," he said at a press conference, Monday, February 17.

Perry conveyed the new placement instruments, namely Bank Indonesia's Valas Securities (SVBI) and Bank Indonesia's Sukuk Valas (SUVBI).

Previously, BI only provided placement in the Term Deposit (TD) Valas. However, currently foreign exchange of export products will be placed in a special account or placed in the BI monetary instrument, namely SUVBI and SVBI.

Furthermore, DHE SDA which has been stored in the TD Valas DHE, SUVBI and SVBI can be converted into foreign exchange (FX) swaps.

Then the next utilization is FX Swap Hedging with underlying TD Valas DHE and rupiah loans by banks with coallateral TD Valas, SVBI, or SUVBI.

As for the SUVBI and SVBI which are the instruments for placing DHE SDA, Perry emphasized that the issuance of SVBI and SUVBI will be adjusted to the needs of exporters and banks.

"Our commitment, no matter how much the needs of exporters are, we will issue it. SVBI and SUVBI and also for FX," he said.

Perry conveyed that the issuance of the DHE SDA placement instrument, namely on SVBI and SUVBI, will be issued with a time period of 6, 9, 12 months and can be traded in the secondary market and strengthen the foreign exchange market and stabilize the rupiah exchange rate.

According to him, since 2023, the first time the mandatory policy of storing exports in the country is the level of exporter compliance in bringing DHE SDA into a special account has reached 95 percent to 100 percent for the oil and gas (oil and gas) sector.

Perry conveyed that the current special account position is an average of 13 billion US dollars in the Indonesian financial system with 100 percent DHE SDA placements estimated to increase to 80 billion US dollars.

"With this new policy, we estimate that by the end of this year it could increase by 80 billion US dollars. This is with a new policy of 80 billion US dollars, from 13 billion US dollars to 80 billion US dollars it goes into a special account," he explained.

Meanwhile, Perry said that exporters from the non-oil and gas sector only reached 82 percent to 89 percent who obeyed the policy.

In addition, Perry said that the level of compliance in placing the financial instruments provided was oil and gas exporters, namely 97 percent to 100 percent and non-oil and gas exporters at 91 percent to 96 percent.