16th Economic Policy Package: Designated Bank Accounts to be Opened for Export Earnings
Date 17 November 2018
The Government on Friday (16/11) launched the 16th Economic Policy Package that includes a policy to open designated bank account for export earnings (DHE).
Bank Indonesia and the Financial Services Authority (OJK) will issue a designated bank accounts to put the DHE in and ease the supervision of DHE, Coordinating Minister for the Economy Darmin Nasution said after a press conference at the Presidential Office, Jakarta, Friday (16/11).
Darmin added that any prevailing regulations on mechanism of DHE entering the country will still be applied.
In addition to that, there will be a designated bank accounts in the domestic financial system to deposit the DHE. The earnings can be converted into rupiah and will be given tax incentives, Darmin said.
The Coordinating Minister went on to say that the government will still give an incentive for the DHE that is deposited in US dollar, but in smaller percentage.
Based on Government Regulation Number 123 of 2015, the final income tax for earnings deposited in rupiah will be only 7.5 percent for one month, five percent for three month and zero percent for six months or more, Darmin explained.
On the other hand, for earnings deposited in foreign currency, the final income tax will be 10 percent for one month, 7.5 percent for three months, and 2.5 percent for more than six months, he added.
According to the Coordinating Minister, the policy package regulated an automatic roll-over mechanism for DHE when the time deposit is over. In the previous mechanism, the exporter must apply for a new deposit when the time deposit is over.
The exporters can also use the designated accounts to pay loans or other routine bills by providing evidences that their businesses are authorized, Darmin added.
Darmin asserted that the IMF World Bank has regulated that an acceptable export earnings regulation must not prevent the company from using the export earnings (foreign exchange) for company’s operational needs.
As long as they comply to the rules, they will be able to withdraw money without paying more.
Since policy also comprises an expansion of the tax holiday program, it shall apply within a week. In addition, policy on adjustment of the negative investment list (DNI) shall also apply by the end of next week, Darmin said.
Meanwhile, policy on DHE shall be adopted no more than 90 days after date of export. It shall apply on 1 January 2019, as agreed by Bank Indonesia. (MAY/FID/EN)
Translated by : Rany Anjany Subachrum
Edited by : Ayu Wulandari