JAKARTA : Indonesia plans to introduce a requirement for exporters to keep their foreign exchange earnings in the local banking industry for three months, a top government official was cited by media as saying on Wednesday.
The government was discussing the plan with the central bank and a review on current requirements for export earnings was nearly complete, Airlangga Hartarto, the chief economics minister, was quoted as saying by mainstream media outlets.He earlier this month said Indonesia was considering revising a 2019 regulation that mandated exporters of natural resources keep earnings in a special account at domestic banks, including the possibility of setting a minimum holding period.
Indonesia is the world's biggest exporter of thermal coal and palm oil. It is also a major exporter of nickel, tin, copper, and rubber, among other commodities.Banks will be allowed to pass on exporters' deposits to the central bank and BI will pay a premium interest rate for the U.S. dollar to encourage exporters to keep earnings onshore for longer, monetary policymakers said.