Prabowo Enacts Regulation to Channel $100 Billion in Export Proceeds into Indonesia

JAKARTA, investortrust.id – President Prabowo Subianto has enacted Government Regulation No. 8 of 2025, mandating that all export proceeds from natural resources be fully repatriated and held within the country's financial system for a minimum of 12 months. This policy aims to bolster national economic resilience by ensuring that foreign exchange earnings contribute directly to domestic development.

"The utilization of Indonesia’s natural resources must be optimized for the prosperity of the nation and its people," Prabowo stated at the State Palace in Jakarta on Monday, Feb. 17, 2025.

The regulation introduces five key provisions. First, it mandates that 100% of export proceeds from natural resources must be deposited in Indonesia’s financial system for a period of 12 months in designated national bank accounts.

"This requirement applies to the mining sector—excluding oil and gas—as well as plantation, forestry, and fisheries industries," Prabowo explained.

The exclusion of the oil and gas sector follows the provisions of Government Regulation No. 36 of 2023, which governs export proceeds from the exploitation, management, and processing of natural resources. With the implementation of Regulation 8/2025, Prabowo estimates the government could secure an additional $80 billion in export proceeds.

 "If fully implemented by March 1, the total proceeds within 12 months could exceed $100 billion," he added.

Exporters Allowed Limited Use of Export Proceeds

Prabowo emphasized that the government allows exporters to use the funds deposited in special accounts under certain conditions to ensure business continuity.

First, the funds can be used for operational activities and maintaining business sustainability. Second, foreign exchange funds may be allocated for tax obligations, non-tax state revenue, and other government-related liabilities, in compliance with applicable regulations. "Third, dividend payments in foreign currency are permitted," Prabowo stated.

Additionally, the regulation allows the use of foreign exchange for the procurement of goods and services—including raw materials, auxiliary materials, and capital goods—when they are unavailable, partially available, or fail to meet domestic specifications. "Lastly, repayments for capital goods loans in foreign currency are also covered under this regulation," he noted.

Enforcement and Sanctions

To ensure compliance, Regulation 8/2025 imposes administrative sanctions, including export service suspensions for those failing to adhere to the new rules. Meanwhile, export proceeds requirements for oil and gas mining will continue to follow the provisions set in Regulation 36/2023.

This new regulation marks a significant step in securing foreign exchange reserves and strengthening Indonesia’s financial resilience by ensuring export earnings are retained within the country.