Indonesia to Make Export Earnings Kept Home for a Year, Local Media Reports

  • Government seeks to lengthen lockup to 1 year from 3 months
  • Resource exporters currently keep 30% of FX revenues onshore
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Indonesia will require commodity exporters to keep part of their foreign currency earnings onshore for at least one year in a bid to boost foreign reserves, according to a senior minister.

That is much longer than the current requirement of three months, with a revised regulation to be issued soon, Coordinating Minister for Economic Affairs Airlangga Hartarto said on Wednesday. The government and Bank Indonesia are also preparing incentives to ensure compliance, he said.