Jakarta – Indonesian President Prabowo Subianto announced the government’s latest strategic policy that tightens the rules for storing export proceeds from the natural resources sector, at the Presidential Palace, Jakarta, Monday (17/2).

This policy is contained in Government Regulation (PP) No. 8 of 2025 concerning Foreign Exchange of Export Proceeds from Natural Resources Exploitation, Management, and/or Processing Activities. This regulation will come into effect on 1 March 2025.

‘The government stipulates that the obligation to place foreign exchange proceeds from natural resource exports in the Indonesian financial system will be increased to 100 per cent, with a period of 12 months from the placement in a special account for natural resource export proceeds in national banks,’ Prabowo said.

Prabowo explained that this strategic policy was made to optimise the utilisation of proceeds from Indonesia’s natural resources for the prosperity of the nation and the people.

Foreign exchange kept domestically will have an impact on increasing Indonesia’s foreign exchange reserves and lead to the stability of the rupiah exchange rate.

‘The utilisation of Indonesia’s natural resources must be optimised for the prosperity of the nation and the people. Both through development financing, money circulation in the country, increasing foreign exchange reserves, exchange rate stability,’ Prabowo explained.

Prabowo said that so far, foreign exchange funds from exports, especially from the natural sector, have been kept abroad so that they do not rotate in Indonesia and the benefits for the Indonesian people are less than optimal.

‘So far, a lot of foreign exchange funds from exports, especially from the natural resources sector, have been stored abroad. In foreign banks. In order to strengthen and enlarge the impact of the management of export proceeds from natural resources, the government stipulated Government Regulation No. 8 of 2025,’ he concluded.

Prabowo continued that the 100% export proceeds policy will apply specifically to the mining, plantation, forestry and fisheries sectors. Meanwhile, the oil and gas sector is excluded.

‘The oil and gas sector is exempted while still referring to the provisions of PP 36 2023,’ he said.

Prabowo estimated that with the implementation of this policy, Indonesia’s export earnings will increase by US$80 billion.

‘With this step, in 2025 our export earnings are estimated to increase by US$80 billion, because this will take effect from 1 March. If we complete 12 months, the result is expected to be more than US$100 billion,’ he continued. (RR)