Coordinating Minister Airlangga: Revision Of DHE Will Improve National Foreign Exchange Reserves

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Doc. Antara)

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the revision of the Export Results Foreign Exchange (DHE) regulation could increase national foreign exchange reserves.

Meanwhile, President Joko Widodo asked his staff to revise Government Regulation (PP) No.1/2019 concerning Export Result Foreign Exchange from Business Activities, Management, and/or Natural Resources Processing.

"Thus we will revise it, so of course we hope that the increase in exports and trade balance surpluses will be in line with the increase in foreign exchange reserves," said Coordinating Minister Airlangga in an official statement in Jakarta, quoted from Antara, Thursday, January 12.

He said Indonesia's exports had experienced a slowdown from mid to late 2022, including major commodities such as metal, CPO, to coal.

Until the end of 2022, the value of Indonesia's exports reached 299.57 billion US dollars or grew 29.40 percent year on year (yoy), and imports amounted to 245.98 billion or grew 25.37 percent yoy.

"Export performance in Indonesia's international trade in 2023 is projected to grow by 12.8 percent yoy and imports will grow higher by 14.9 percent yoy," said Coordinating Minister Airlangga.

He mentioned several countries such as Japan, France, Mexico, Indonesia, Brazil, India and Saudi Arabia, the manufacturing Purchasing Manager of the Index (PMI) is still showing expansiveness.

However, several major countries such as Italy, Germany, Korea, and the manufacturing PMI are already below 50 percent.

"This shows that the world is still (within) uncertainty and we are also seeing economic growth and trade growth which last year expansion was 3.5 percent, so this year it is estimated that only 1 percent," said Coordinating Minister Airlangga.

Furthermore, Coordinating Minister Airlangga conveyed President Joko Widodo's directive regarding investments that are targeted to reach IDR 1,400 trillion by 2023.

"We need some regulations that are perfected, namely, of course, the improvement of Government Regulations, the improvement of the RBA OSS, and the Investment Priority List," said Airlangga.