Indonesia mandates exporters to keep 100% of export proceeds onshore to stabilize Rupiah.

Jakarta announced on Tuesday that all exports with a shipping document valued at $250,000 or more will be subject to the new regulation effective March 1.^{1) 2)}

At present, exporters are mandated to retain only 30% of their total earnings for a minimum period of three months.^{3) 4)}

This requirement has led to increased interest costs for some exporters, Reuters said.⁵⁾

Jakarta announced that the decision was undertaken to bolster the supply of the US dollar to stabilize the Indonesian rupiah, which had fallen to a 6-month low in January.⁶⁾

To address the challenges related to working capital, the government has proposed a potential solution: allowing businesses to utilise their earnings as collateral when securing a loan.⁷⁾

They argue that this measure is still disadvantageous to businesses as it requires them to bear the burden of loan interest, which ultimately increases their overall expenses.⁸⁾