Starting from 1 August 2023, exporters of natural resources products, namely those generated from mining, plantation, forestry, and fishery businesses, must place at least 30% of the proceeds generated by them from the export of natural resources products (these proceeds are referred to as DHE SDA or Devisa Hasil Ekspor dari Barang Ekspor Sumber Daya Alam) in the country’s financial system. This requirement is introduced under Government Regulation No. 36 of 2023 on Export Proceeds from Natural Resources Business Activities, Management, and/or Processing (“Regulation”).
Despite Indonesia seeing an increased growth of the export of natural resources products, this growth has not been accompanied by a growth in DHE (devisa hasil ekspor or foreign exchange proceeds from export). This is because exporters often choose to keep their DHE offshore, citing a more competitive interest rate and convenience in operation as their reasons in doing so. As a result, Indonesia’s rapid growth in exports is not reflected with proportional growth of DHE placed in domestic storages which may adversely affect the nation’s profitability.
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