Press Statement of President of the Republic of Indonesia on the Enactment of Government Regulation Number 8 of 2025 on the Obligation to Deposit Foreign Exchange from the Export of Natural Resources in the Domestic Market, at the Merdeka Palace, Jakarta, Monday, February 17, 2025

Bismillahirrahmanirrahim,

Assalamu’alaikum warahmatullahi wabarakatuh,
Good afternoon,

Peace and prosperity be upon us,

Shalom,

Salve,
Om swastiastu,

Namo buddhaya,

Greetings of virtue.

This afternoon, on February 17, 2025, I chaired a limited cabinet meeting together with the Red and White Cabinet’s ministers responsible for the economy.

We discussed the development of the economy. I received an update. I was presented with a progress report by Coordinating Minister for Economic Affairs.

I am pleased that our economy is under control and our inflation is currently one of the lowest in the world. Our growth is also expected to remain above the world average and almost all sectors are running under control.

Amid the uncertain geopolitical developments worldwide, our economic resilience is quite robust. There are still many challenges, many difficulties, but we fare well.

In the coming months, we will see a stronger development of our economy. Especially today, we made a decision on foreign exchange from the export of our natural resources.

Indonesia’s natural resources must be prioritized for the prosperity of the nation and its people, through development financing, domestic money circulation, increased foreign exchange reserves, and exchange rate stability. So far, our foreign exchange, especially from natural resources, has largely been stored abroad, in foreign banks.

To strengthen and increase the impact of the management of Foreign Exchange from the Export of natural resources, the Government enacted Government Regulation Number 8 of 2025, the main points are as follows:

First, the Government stipulates that the obligation to deposit foreign exchange from natural resources into the Indonesian financial system will be increased to 100 percent, with a period of 12 months from the time of placement, in a special foreign exchange account for natural resources in national banks.

This provision applies to the mining sector, except oil and gas; plantations; forestry and fisheries. The oil and gas sector are exempted as it still refers to the provisions of Government Regulation Number 36 of 2023.

Following this measure, it is estimated that by 2025, our foreign exchange earnings will increase by as much as US$80 billion, as the policy takes effect on March 1. Over a full 12-month period, the result is expected to exceed US$100 billion.

In addition, the Government provides exporters with the opportunity to ensure the continuity of their businesses by allowing them to utilize foreign exchange from the export of natural resources, placed in a dedicated account for the following purposes:

1. Conversion to Rupiah at the same bank to conduct operational activities and sustain business continuity;
2. Payment in the form of foreign currency for tax obligations, non-tax state revenues, and other obligations to the Government in accordance with the applicable laws and regulations;
3. Dividend payment in the form of foreign currency;
4. Payment for the procurement of goods and services, in the form of raw materials, auxiliary materials, or capital goods that are not yet available, unavailable, partially available, or available but do not meet the required domestic specifications, in foreign currency;
5. Repayment of loans for the procurement of capital goods in foreign currency.

This article also stipulates the enforcement of administrative sanctions in the form of suspension of export services for those who fail to implement this government regulation.

Furthermore, the regulation on the obligation to place foreign exchange from the export of natural resources for commodities in the mining, oil, and natural gas sectors will continue to refer to Government Regulation Number 36 of 2023.

The effective term of the regulation is set on March 1, 2025. The Government will continue to adopt strategic policies to boost our economic growth.

Ladies and Gentlemen,

In this year’s Q1, the policies that stimulate the growth of the economy are as follows:

1. [Impact] of the 2024 Provincial Minimum Wage increase policy results;
2. Optimization of social assistance distribution in February and March of 2025;
3. Disbursement of Religious Holiday Allowance (THR) for state civil servants and private workers in March 2025;
4. Stimulus packages during the month of Ramadan, namely (a) discounted airline ticket prices, (b) discounted toll rates, (c) discount shopping programs, (d) Eid homecoming tourism programs, (e) food price stability;
5. Economic stimulus packages, namely (a) electricity tariff discounts, (b) VAT borne by the Government on property and automotive purchases, (c) Sales Tax on Luxury Goods borne by the Government on automotive, electronic vehicles, and hybrids, (d) tax subsidies borne by the Government on electric motorcycles, (e) Income Tax borne by the government on labor-intensive sectors;
6. Optimization of the Free Nutritious Meal Program;
7. Optimization of the People’s Business Credit distribution;
8. Optimization of rice harvest, I’ve received reports that our rice production has significantly increased.

Ladies and Gentlemen,

And policies that encourage competitiveness for the transformation of our economy are as follows:

1. First of all, of course, the Free Nutritious Meal Program, which is expected to boost growth in all regions of our country because the money is circulating in the village, in the district, in the regency;
2. Continued food and energy resilience programs;
3. The optimization of our SOE management through the consolidation of the National Investment Fund, which will be launched on February 24, is called Danantara. Danantara consolidates all our economic power in the management of SOEs. It will be managed under the name Danantara (Daya Anagata Nusantara). ‘Daya’ means energy or strength. ‘Anagata’ means the future. ‘Nusantara’ means our homeland. Therefore, Danantara represents the economic power of investment funds, representing the energy and strength of Indonesia’s future. The nation’s wealth will be managed and saved for our children and grandchildren.
4. Housing Financing Liquidity Facility (FLPP) policy to execute the 3 Million Affordable Houses Program;
5. Inflation control;
6. Development of industrial estates and SEZs;
7. Amendment to Government Regulation Number 5 of 2021 on ease of doing business;
8. Continuation of tax holiday, tax allowance to maintain investment climate;
9. Earlier, we have announced the policy on foreign exchange from the export of natural resources;
10. We will establish a gold bank, a gold bank. So far, we don’t have a bank for our gold. There is none in Indonesia. So, a lot of our gold is mined and flows abroad. We want to now have a special bank for gold in Indonesia. God willing, we will launch it on February 26. I think this is the very first for our republic;
11. We will continue to improve the bad debt write-off for MSMEs;
12. Of course, there is also our international policy, which is that Indonesia has joined BRICS. It has already been announced that we were accepted into BRICS. Yes, the process is ongoing and the transition is underway. We will also finalize the CEPA (Comprehensive Economic Partnership Agreement). Essentially, this is a type of free trade area where we lower our tariffs for each other’s goods. Also, we are continuing our application to join the OECD. Lastly, we also aim to finalize our cooperation with the EU-Indonesia CEPA as soon as possible.

So, Ladies and Gentlemen, these are the results of today’s meeting, although the work took weeks and was carried out by the Coordinating Minister and all the ministers. We have discussed it many times, but today we are summarizing and making a decision. I have signed Government Regulation Number 8 of 2025, and today we are announcing it to the public.

That concludes my statement, Ladies and Gentlemen.

We are grateful that we can give our best to the nation and the people. Difficulties are inevitable, obstacles are inevitable, challenges are inevitable.

But with good cooperation among all parties, with sincere intentions, with our sole aim being the interests of the nation and the people, and adherence to the 1945 Constitution, God willing, we will achieve success and become stronger in the months and years ahead.

I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh,
Peace and prosperity be upon you,
Om santi, santi, santi om,
Namo buddhaya.

. (FI/EP)