At the beginning of this year, the Indonesian government officially required all exporters to place their foreign exchange earnings from natural resource exports (DHE SDA) in the domestic financial system for a period of one year. Entering the second half of 2025, the benefits of this policy have begun to show. This development is certainly a positive signal for Indonesia’s investment climate.
Previously, the policy was projected to boost the country’s foreign exchange reserves by more than 100 billion US dollars in a single year.
The regulation is outlined in Government Regulation (PP) No. 8 of 2025, which takes effect on March 1, 2025, revising PP No. 36/2023 that had been in force since August 1, 2023.
Indonesia’s Investment Climate: Rules on Natural Resource Export Proceeds
The regulation, enacted in March, mandates exporters to place 100 percent of their export earnings into Indonesia’s financial system. The funds are kept in special accounts for DHE SDA in national banks, with a much longer retention period of one year.
This rule applies to sectors such as mining (excluding oil and gas), plantations, forestry, and fisheries. The oil and gas sector remains subject to the provisions of PP No. 36/2023.
“With this step in 2025, our export earnings are expected to increase by 80 billion US dollars. Since it will apply from March 1, if calculated for a full 12 months, the result is estimated to exceed 100 billion US dollars,” said President Prabowo Subianto at a press conference at the Merdeka Palace, Jakarta, Monday (17/2/2024), as quoted by Kompas.
Previously, exporters with a minimum export value of 250,000 US dollars were only required to place at least 30 percent of their export earnings into Indonesia’s financial system for a minimum of three months.
Prabowo continued that, until now, most export earnings, particularly from natural resources, were often kept in overseas banks. Through this regulation, it is expected that the impact of DHE SDA will be more beneficial for Indonesia.
The president emphasized that the DHE SDA policy is one of several measures to strengthen competitiveness and drive economic transformation. The aim is to further improve Indonesia’s investment climate. Other policies include the Free Nutritious Meals program, Food and Energy Security initiatives, optimization of state-owned enterprises through Danantara, and the Housing Financing Liquidity Facility for the 3 Million Houses program.
Further initiatives include the development of industrial and special economic zones, investment credit for labor-intensive industries, revision of PP No. 5/2021 to ease business processes, and continuation of tax holiday and tax allowance policies to maintain the investment climate. Other measures include the establishment of bullion businesses and the cancellation of bad debt records for MSMEs.
Indonesia’s Investment Climate: Benefits of the Policy Begin to Show
According to CNBC Indonesia, the government’s regulation requiring exporters to place their DHE domestically is already showing results. This is reflected in the stable and strengthening rupiah, even amid domestic socio-political turbulence. Indonesia’s trade balance has maintained a surplus for 63 consecutive months, reaching 4.17 billion US dollars in July, further boosting dollar supply in the financial market.
“Because of this regulation from the government, PP No. 8 of 2025 regarding export earnings, exporters of non-oil and gas natural resources are required to keep their funds in the domestic financial system for one year,” said Maybank Indonesia Global Markets Economist Myrdal Gunarto, Wednesday (3/9/2025).
“So, exporters must place their earnings here. That’s why the supply of rupiah remains strong, as does the supply of dollars domestically. And the rupiah has strengthened quite well if we look at its movement,” he explained.
Meanwhile, attractive yields in the bond and stock markets also contributed to maintaining sentiment and foreign currency inflows during periods of political unrest.
Furthermore, Bank Indonesia (BI) assured that the rupiah would remain stable and would be further strengthened against the US dollar.
“We continue to fight and, Alhamdulillah, the stability of the rupiah, monetary, and financial markets is maintained,” said BI Governor Perry Warjiyo.
“We continue to safeguard the rupiah, which yesterday morning had reached Rp16,560. Alhamdulillah, today we were able to stabilize it to Rp16,400, and we will strive to lower it further to Rp16,300 and even stronger,” he explained.
Indonesia’s Investment Climate 2025 is becoming more attractive thanks to guarantees of financial stability. With visible benefits from this policy, foreign investors may see Indonesia as capable of maintaining strong capital flows despite global uncertainty.
Stable rupiah and stronger foreign reserves provide greater security for long-term investments. Unsurprisingly, investor interest in strategic sectors such as renewable energy, infrastructure, and manufacturing is on the rise again.
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