Government Prepares Incentives for Indonesians to Keep Dollar Savings at Home
Key Takeaways
|
JAKARTA, Investortrust.id — President Prabowo Subianto has prepared a market-based incentive scheme to encourage Indonesians to keep their dollar savings in domestic banks, rather than sending funds abroad.
The plan, discussed at the Presidential Palace in Jakarta on Friday, Sept 19, 2025, is expected to strengthen foreign exchange reserves, improve dollar liquidity in the banking sector, and support financing for strategic government projects.
Finance Minister Purbaya Yudhi Sadewa, who delivered the statement after meeting President Prabowo, said the government wants to move quickly.
“The plan to attract dollars that Indonesians usually keep overseas back into the country is not yet final, but I think it looks very promising,” Purbaya told reporters.
He explained that Indonesian citizens often transfer foreign currency savings abroad, particularly to neighboring countries, reducing potential domestic liquidity. By offering attractive returns through this scheme, the government hopes to reverse that flow.
“I just learned that every month many Indonesians send money abroad, mainly to countries around this region. We want to stop that by offering attractive incentives so they no longer need to send dollars outside,” he said.
Purbaya, a former chairman of the Board of Commissioners at the Indonesia Deposit Insurance Corporation (LPS), stressed that retaining dollar funds at home would not only enlarge reserves but also ensure local banks had stronger foreign exchange supplies. This would enable them to finance dollar-denominated projects at competitive interest rates.
“If we can keep the money inside and prevent it from going out again, our reserves will grow, and our banks will have greater dollar supply,” Purbaya concluded.
Promo!
Strengthen your investment strategy with real-time insights and data. Analyze markets quickly and easily with InvestingPro — enjoy an exclusive discount for Investortrust readers. Click here to access the offer.