Gov’t Plans Incentives to Lure Back Overseas Dollars

Minister of Finance Purbaya Yudhi Sadewa delivers a press statement after meeting President Prabowo Subianto at Merdeka Palace, Jakarta, on Friday (09/19). (Photo by: BPMI of Presidential Secretariat)

The Government is refining a market-based incentive scheme designed to encourage fund owners to repatriate their dollars domestically, Minister of Finance Purbaya Yudhi Sadewa said in a press statement at Merdeka Palace, Jakarta, on Friday (09/19).

The Minister said that the scheme could be implemented soon. This measure is expected to bolster foreign exchange reserves, boost the dollar supply in the national banking system, and support the financing of the Government’s strategic projects.

“The plan is to bring back Indonesian-owned dollars often kept overseas. The scheme has not yet been finalized, as we are still refining it. But I can see that the plan looks very promising,” the Minister said.

He noted that the incentives are expected to reduce the foreign currency outflow routinely carried out by some Indonesian citizens, resulting in higher reserves and a stronger supply of dollars in domestic banks.

“I’ve just learned that every month, many Indonesians send their money abroad, mostly to several countries in the region. We intend to address this by offering attractive incentives, so they no longer need to go through the trouble of sending their dollars overseas,” he stated.

The Minister also highlighted the importance of ensuring the incoming funds remain in the country to further strengthen national foreign exchange reserves and provide a more stable supply of dollars in domestic banks. He added that the need for dollar financing for future projects could then be met domestically at competitive interest rates.

“If we can keep the inflows here, our reserves will grow even stronger, and our banks will have greater dollar supply,” he concluded. (BPMI of Presidential Secretariat) (FI/LW)