Indonesia Announces 100% Export Earnings Retention: Economic Game-Changer or Business Constraint? 

A sweeping new regulation mandates that exporters in key natural resource sectors keep 100% of their foreign exchange earnings within the country’s financial system for a full year, an aggressive strategy aimed at bolstering foreign reserves and protecting the rupiah.
Indonesia's President Prabowo Subianto greets journalists in October 21, 2024. A sweeping new regulation mandates that exporters in key natural resource sectors keep 100% of their foreign exchange earnings within the country’s financial system for a full year, an aggressive strategy aimed at bolstering foreign reserves and protecting the rupiah. BAY ISMOYO / AFP

As Indonesia tightens control over export earnings, President Prabowo Subianto’s administration is making a decisive bet on economic resilience.

A sweeping new regulation mandates that exporters in key natural resource sectors keep 100% of their foreign exchange earnings within the country’s financial system for a full year, an aggressive strategy aimed at bolstering foreign reserves and protecting the rupiah.

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by Edwin Shri Bimo

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