KONTAN.CO.ID - JAKARTA. Indonesia plans to issue a revised regulation on natural resource exporters' earnings in February, its finance minister said on Tuesday, adding that authorities were finalising details. The resource rich country has been considering revising rules on export earnings to make exporters keep their funds for longer onshore amid a global liquidity tightening, including potentially setting a minimum three-month holding period, officials have said. Sri Mulyani Indrawati said financial authorities were looking at determining a threshold for the portion of earnings that exporters must keep onshore, so not to disrupt shipments.
She also said the regulation must not contradict rules on free flow of capital. "We will continue to maintain our guidelines so that on one side Indonesia can be assured that when our exports are high, the earnings can strengthen our foreign exchange (FX) reserves," she told a joint news conference with other financial regulators. "On the other side Indonesia is committed to maintain a FX regime that does not discourage investment and exports," she added. Baca Juga: Indonesia Finance Minister Sri Mulyani among Candidates for Top C.Bank Job- Source Exporters in sectors that process natural resources would also be subject to the new regulation, Sri Mulyani said. Southeast Asia's largest economy has mandated exporters of natural resources receive earnings in a special account at domestic banks under a regulation issued in 2019.
