Coordinating Minister For Maritime Affairs Says PP DHE Adds Foreign Exchange Reserves Of Up To 300 Billion US Dollars

Illustration (Photo: Doc. Antara)

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said Government Regulation (PP) Number 36 of 2023, which requires the placement of export foreign exchange (DHE) in the country, can increase foreign exchange reserves, even up to 300 billion US dollars.

Luhut said, according to Government Regulation (PP) Number 36 of 2023, exporters who have an export value of natural resources are at least 250,000 US dollars required to store at least 30 percent of DHE in the Indonesian financial system with a minimum period of three months.

"We ask to stay for 3 months, given interest by BI (Bank Indonesia), so that I think our foreign exchange reserves will be more than 300 billion US dollars in the near future this year," Luhut said as quoted by Antara, Thursday, July 27.

Meanwhile, according to data from Bank Indonesia (BI), as of June 2023, Indonesia's foreign exchange reserves amounted to US $ 137.5 billion.

Furthermore, Luhut said that PP 36/2023 DHE from Business Activities, Management, and/or Natural Resources Processing is very important. DHE which is stored in the domestic financial industry, he said, can be used for the economy.

"DHE is very important. DHE can get funds that are rotated living in Indonesia from exports from the mines up to 9 billion (US dollars) per year," he said again.

President Joko Widodo signed PP 36/2023 DHE from Entrepreneurship, Management, and/or Natural Resources Processing Activities on July 12, 2023.

The PP regulates the placement of DHE SDA must be carried out no later than the end of the third month after the registration month of Export Customs Notification (PPE).

In addition to special accounts, DHE SDA can be placed on banking instruments, financial instruments issued by LPEI, or instruments published by BI.

"In the event of a macroeconomic stability problem and/or financial system stability, a conversion of the DHE SDA placed in the Special Account of the DHE SDA in accordance with the provisions of the legislation," as written by the government in Article 9 of the PP.

Exporters who have placed DHE SDA in the country can be given tax facilities and designated as well-put exporters.

The PP also regulates sanctions regarding exporters who do not include DHE SDA into DHE SDA Special Accounts, do not place a DHE SDA of at least 30 percent within a maximum period of three months, and do not make or move an emergency account, will be given administrative sanctions in the form of suspension of export services.