President Prabowo Subianto, accompanied by several Cabinet Ministers and officials, announces a new government policy aimed at strengthening national economic resilience by requiring retention of foreign exchange from natural resource export. (Photo: BPMI of Presidential Secretariat).
President Prabowo Subianto Monday (02/18) unveiled Government Regulation Number 8 of 2025, stipulating retention of foreign exchange from natural resources export.
“To strengthen and maximize the impact of managing foreign exchange from natural resource exports, the Government has issued Government Regulation Number 8 of 2025,” President Prabowo stated at the Merdeka Palace, Jakarta.
The regulation stipulates that exporters in the mining sector (excluding oil and gas), as well as plantation, forestry, and fisheries sectors, are required to deposit 100% of foreign exchange into national financial system for 12 months in a special account at a national bank.
Meanwhile, the oil and gas sector should continue to comply with provisions stipulated in previous regulation, Government Regulation Number 36 of 2023.
“It is estimated that in 2025, our export foreign exchange reserves will increase by $80 billion. Since this policy takes effect on March 1, if it runs for a full 12 months, the total could exceed $100 billion,” President Prabowo Subianto explained.
According to the President, exporters would have flexibility in using their retained foreign exchange, including converting the foreign exchange into rupiah at the same bank for business operations, paying taxes and non-tax state revenues, fulfilling other foreign exchange obligations, and distributing dividends in foreign currency.
“Foreign currency may also be used for procurement of goods and services, including raw materials, auxiliary materials, or capital goods that are unavailable, partially available, or available but not meeting required specifications. Repayment on loans for capital goods procurement in foreign currency are also permitted,” the President said, adding that exporters who fail to comply with the policy are subject to penalty, including the suspension of export services.
President Prabowo Subianto further said that the regulation would come into force on March 1, 2025, and the Government will continuously evaluate its impact on the national economy. (BPMI of Presidential Secretariat/AB) (RI/EP)
