Government Targets US$165.9 Billion in Reserves from Natural Resource Exports

JAKARTA, investortrust.id – The government sets its sights on channeling most of Indonesia’s natural resource export proceeds back into the country to boost economic growth. This push begins Friday, Feb 28, 2025, and focuses on securing 62.7% of revenue from commodity exports, amounting to US$165.9 billion, so that funds remain domestically.

In the second paragraph, Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso explains that the newly issued Government Regulation No. 8 of 2025 (PP 8/2025), amending the earlier PP 36 of 2023 on Export Proceeds from Natural Resource Businesses, comes into effect on March 1, 2025. Under this regulation, export revenues of US$250,000 or more in value—largely generated by mining, plantation, forestry, and fisheries sectors—must be placed in Indonesian financial institutions for a designated period.

Susi, speaking during a formal briefing, reveals that Indonesia’s total exports reached US$264.7 billion in 2024, of which 62.7% stemmed from natural resource exports. “If we break it down, mining alone contributed US$102.8 billion, palm oil and other plantation commodities stood at US$46.7 billion, forestry products at US$10.5 billion, and fisheries at US$6 billion,” she said on Friday, Feb 28, 2025.

Emphasizing the importance of retaining this capital onshore, Susi points out that the measure is intended to fuel domestic economic activities. “Our natural resource exports need structured regulations to ensure export proceeds stay within the country. This policy ultimately aims to bolster the national economy,” she said.

By making the repatriation requirement clear, the government hopes to bolster national foreign exchange reserves, strengthen the rupiah, and support domestic industries. The policy follows a recent push for greater financial resilience, ensuring vital export revenues are channeled into local development.

Earlier, esporters raised concerns that they risk losing out if the interest paid on funds parked in Indonesia was lower than the cost of their working capital loans. Chairman of the Indonesian Exporters Association (GPEI), Benny Soetrisno, warns that such a requirement could disrupt cash flow, hurt export performance, and ultimately weaken economic growth. A decline in export volumes could also pressure the rupiah by reducing the supply of US dollars in the domestic market.