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Government Prepares Revision of Export Revenue Regulations to Enhance Retention



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Government Prepares Revision of Export Revenue Regulations to Enhance Retention

InfoSAWIT, JAKARTA - The government is preparing a revision of regulations related to export revenue (DHE) from the natural resources sector to strengthen national economic management. This revision focuses on further regulations regarding DHE from leading commodities such as coal, natural gas, crude palm oil (CPO), pulp and paper, and tin.

Currently, Government Regulation (PP) No. 36 of 2023 requires exporters to keep DHE domestically for a minimum of three months, with a value of 30% of total exports. However, the government plans to extend the retention period and possibly increase the percentage of DHE that must be parked domestically.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, revealed that the implementation of the DHE regulation has shown good results, with compliance rates nearing 90%. By the end of 2024, the total DHE entering the country is estimated to reach US$ 14 billion.

"The implementation of the 30% DHE has been good, with nearly 90% compliance, and by the end of the year, it is estimated that around US$ 14 billion will enter. However, we will intensify this further," said Airlangga, as quoted by InfoSAWIT from Kontan on Tuesday (December 24, 2024).

However, this realization is still far from the government's initial target in 2023, which aimed for DHE retention of US$ 40–49 billion.

The plan to revise the DHE regulation has received mixed responses, especially from the palm oil industry. The Chairman of the Indonesian Palm Oil Entrepreneurs Association (Gapki), Eddy Martono, mentioned that increasing the D HE percentage could affect the capital structure of palm oil companies.

"Until now, working capital has been covered by bank loans. If the DHE percentage is increased, it will certainly add costs to cover that working capital," Eddy stated.

Similar impacts are expected to be felt by industries that rely on imported raw materials for their production processes before re-exporting. Eddy added, "Industries with imported raw materials will face more challenges as they will need additional working capital for imports."

The revision of the DHE regulation is expected to have a positive impact on the national economy, although significant challenges remain, particularly in achieving the much higher DHE retention targets. The government aims for this policy not only to strengthen foreign exchange reserves but also to support long-term economic stability.

Meanwhile, industry players hope the government will consider the impact of this regulation on business continuity and the competitiveness of Indonesian commodities in the global market. (T2)


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