Bank Indonesia Expands Export Proceeds Placement Options Under New Forex Regulation
JAKARTA, investortrust.id – Bank Indonesia, or BI, the country central bank, has expanded the placement options available for exporters and banks to deposit foreign exchange earnings from natural resource exports. (DHE SDA), following the issuance of Government Regulation (PP) No. 8 of 2025.
The new instruments include FX swap hedging backed by foreign currency term deposits (DHE deposits) and rupiah loans collateralized by foreign currency term deposits. These complement existing instruments such as Bank Indonesia Foreign Exchange Securities (SVBI) and Bank Indonesia Foreign Exchange Sukuk (SUVBI). Meanwhile, the previous DHE term deposit scheme has been converted into an FX swap mechanism.
"BI will continue expanding and diversifying financial instruments for exporters and banks to place foreign exchange reserves," said BI Governor Perry Warjiyo at the Coordinating Ministry for Economic Affairs in Jakarta on Monday, Feb. 17, 2025.
New Placement Options for Exporters
Under the current system, exporters who receive DHE SDA funds deposit them into special accounts. These funds can then be allocated across three financial instruments:
- Foreign currency deposits in domestic banks
- SVBI (Bank Indonesia-issued foreign exchange securities)
- SUVBI (Bank Indonesia-issued foreign exchange sukuk)
To enhance liquidity and investment flexibility, BI has extended the tenure of SVBI and SUVBI to 6, 9, and 12 months, up from the previous options of 1, 3, and 6 months.
Banks that receive these foreign currency deposits can re-deposit them at BI under the term deposit mechanism.
"Exporters can now convert their special account deposits into SVBI, which can be traded in the secondary market," Perry explained.
Similarly, exporters who opt for SUVBI can trade their holdings within Indonesia's domestic forex market.
To provide greater flexibility, exporters requiring short-term rupiah liquidity can choose sukuk instruments with matching tenures.
"For instance, an exporter needing funds in one month can buy a one-month sukuk. If they purchase a six-month SVBI but need cash earlier, they can sell it. This ensures that funds circulating in special accounts remain active within the financial system, the money market, and the forex market, benefiting the broader economy," Perry said.
Prabowo Mandates Full Retention of Export Proceeds in Indonesia
President Prabowo Subianto formally announced the new export forex regulation during a press conference at the Presidential Palace in Jakarta on Monday, Feb. 17, 2025.
"The government has mandated that 100% of foreign exchange earnings from natural resource exports must remain within Indonesia's financial system for a minimum of 12 months," Prabowo stated.
The policy applies to exports from the mining, plantation, forestry, and fisheries sectors, with the oil and gas sector exempt under PP No. 36 of 2023.
"Oil and gas exports remain subject to existing regulations under PP 36/2023," Prabowo clarified.
With this policy, Indonesia aims to strengthen foreign exchange reserves and boost liquidity in the domestic financial sector while ensuring export proceeds contribute more significantly to national economic stability.