Indonesia has taken a decisive step to safeguard its financial stability by revising regulations on export proceeds from natural resources. President Prabowo Subianto signed the new rule in early January 2026, marking a turning point in how exporters must manage their foreign exchange earnings. The measure is designed to ensure that trade surpluses translate more directly into stronger reserves and a more stable rupiah.
Key Facts & Background
- New Regulation:
- Signed by President Prabowo Subianto on 2 January 2026.
- Revises Government Regulation (PP) No. 8/2025 on foreign exchange from natural resource exports.
- Export proceeds (DHE SDA) must now be placed in state-owned banks (Himbara) for tighter oversight.
- Official Statements:
- Finance Minister Purbaya Yudhi Sadewa confirmed the regulation is finalized and awaiting formal enactment.
- He emphasized the rule as a milestone to discipline the flow of export proceeds and close loopholes.
- Foreign Exchange Reserves:
- Bank Indonesia reported reserves of USD 156.5 billion at end-December 2025, up only USD 0.8 billion from the previous year.
- This modest increase contrasts with a USD 38.5 billion trade surplus in 2025, highlighting a disconnect between trade performance and reserve accumulation.
- Underlying Issue:
- Many exporters reportedly kept their dollar earnings abroad, limiting the impact of trade surpluses on domestic reserves.
- The government identified gaps in previous rules that allowed such practices.
- Policy Goals:
- Ensure export proceeds flow into domestic financial markets.
- Strengthen reserves as a buffer against global economic shocks.
- Stabilize the rupiah and improve liquidity in local markets.
Strategic Insights
The new regulation on export proceeds reflects Indonesia’s determination to align trade surpluses with tangible gains in foreign exchange reserves. For years, the mismatch between strong export performance and stagnant reserves has raised concerns about capital outflows and weak domestic retention of foreign currency. By mandating that exporters deposit earnings in state-owned banks, the government aims to close loopholes and ensure that surplus dollars contribute directly to national financial stability.
This policy is not only about reserves; it is also about confidence. Stronger reserves provide a cushion against external shocks, from commodity price swings to global financial turbulence. A more stable rupiah, supported by higher reserves, can reduce volatility in domestic markets and reassure investors. The measure also signals to international markets that Indonesia is serious about fiscal and monetary discipline.
At the same time, the regulation highlights the tension between exporters’ preferences and national priorities. Businesses often seek flexibility in managing foreign currency, but the government’s tighter rules reflect a broader need to safeguard macroeconomic stability. The success of this policy will depend on effective enforcement, cooperation from exporters, and the ability of state-owned banks to manage inflows efficiently.