Bank Indonesia says export proceeds rule could support rupiah
The central bank says retained export earnings could lift foreign exchange reserves, but the policy’s full effect will take time to emerge.
Bank Indonesia said Indonesia’s requirement to retain natural resource export proceeds domestically could increase foreign exchange reserves and help strengthen the rupiah. Senior Deputy Governor Aida S. Budiman said on 6 November 2026 that implementation was still under way, with the full impact on foreign currency supply yet to become clear.
Speaking at the Coordinating Ministry for Economic Affairs in Jakarta, Aida said exporters could place the retained funds with banks or Bank Indonesia. Funds deposited at the central bank could add to its foreign exchange reserves, she said.
The retention rule took effect on 1 September 2026, but includes a transition period: export earnings only begin entering the retention period after three months. Aida said swap transactions nevertheless showed signs of an increase in foreign exchange supply. She expressed hope that greater domestic availability of foreign currency would ease pressure on the rupiah and allow it to strengthen.
Separately, the government expanded the export destinations eligible for relaxed placement requirements under Article 18A of Government Regulation No. 21 of 2026. A limited coordination meeting on 3 November 2026 added South Korea, Japan and the European Union. The destinations previously covered were the United States, Canada, China including Hong Kong, and Australia.
