Indonesia Clarifies 100% Export FX Rule, Allowing 30% Retention for Some Trade Partners
Updated
Updated · South China Morning Post · May 30
Indonesia Clarifies 100% Export FX Rule, Allowing 30% Retention for Some Trade Partners
3 articles · Updated · South China Morning Post · May 30
Airlangga Hartarto said exporters from countries with reciprocal or bilateral trade deals with Indonesia need deposit only 30% of foreign-exchange proceeds in non-state banks for at least three months.
Most other non-oil-and-gas exporters still must keep 100% of their earnings in special accounts at state-owned banks for 12 months under Jakarta’s new commodity export regime.
The upstream oil and gas sector is exempt from the Danantara centralized marketing framework, though it remains subject to the lighter 30% retention rule for three months.
Indonesia introduced the rules to recover billions in export revenue, but analysts warn the confusion and possible exemptions could disrupt trade enough to outweigh the expected gains.
Will Indonesia's new export monopoly capture billions or trigger a costly economic backlash from global investors?
Is Indonesia risking trade wars by seizing control of its most valuable natural resources?
As a new state firm takes over key exports, can it avoid the corruption that often plagues such powerful monopolies?