JAKARTA — The Indonesian Palm Oil Association (GAPKI) has ensured that the government’s policy on export earnings (DHE) retention, which requires companies to park their foreign exchange revenue from natural resource exports for certain times in domestic Indonesian banks will not disturb business activities. The new policy will be made effective since 01 March 2026 according to the government regulation (PP) No.8/2025.

GAPKI Chairman Eddy Martono said that there is no need for business players to worry about shortage of operational capital although their foreign exchange revenue is deposited in domestic banks for 12 months. It is because the placed fund can be still disbursed for their financial needs.

“There is no problem with the DHE policy. It can be disbursed in rupiah for operational needs. As long as there is proof of use, the deposited foreign exchange revenue can be still utilized,” Eddy said on Monday (8/9/2025).

According to him, the mechanism will provide two benefits at once: Business operations continue running well and the state can get the benefit of foreign exchange as it is deposited in national banks.

Bank Indonesia (BI) has previously reported that the conversion rate of foreign currencies from exports to rupiah had reached 80% since the DHE policy applied. But the foreign exchange reserves in August 2025 reached US$150.7 billion, slightly decreased from that in July at US$152 billion. The position was still very safe, equivalent to import financing of 6.3 months and stood higher than the international standard of adequacy at only around 3.0 months.

President Prabowo Subianto has targeted through the implementation of PP No.8/2025 that the natural resources-related DHE policy will increase the foreign exchange by up to US$80 billion in 2025. Even if it is fully made effective for one year since 01 March 2026, the foreign exchange from natural resource export is expected to reach more than US$100 billion. (*)