Mandatory Deposit of Foreign Exchange Export Proceeds Deriving from Natural Resources
On 10 January 2019, the Indonesian Government enacted GovernmentRegulation No. 1 of 2019 on Export Proceeds from the Exploitation,Management, and/or Processing of Natural Resources (“GR 1/2019”). Theregulation is purported to maintain the continuity of development as well asthe enhancement and tenacity of the national economy from foreignexchange derived from natural resource exports (Devisa Hasil Ekspor SumberDaya Alam/ “DHE SDA”) entering the Indonesia financial system. GR1/2019 provides the mandatory arrangements for the deposit and use ofproceeds from exports of natural resources from Indonesia. In return,according to some news, the Indonesian Government will grant certainincentives for exporters which comply with GR 1/2019 in the form of adeduction from the tax on fixed deposit interest which will provided under aBank Indonesia Regulation.
Following the issuance of GR 1/2019, Bank Indonesia issued its regulationNo.21/3/PBI/2019 regarding Export Proceeds from the Exploitation,Management, and/or Processing of Natural Resources (“PBI 21”). Thisregulation is one of the implementing regulations that must be issued withinseven days of the issuance of GR 1/2019.
The following are the GR 1/2019 highlights:
Read more about the coverage of GR 1/2019 in our latest advisory.
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