Indonesia has announced a significant change in its economic policy by extending the lock-up period for export earnings from resource sectors. The government has increased the lock-up duration from three months to 12 months, effective March 1. This new rule mandates that mining companies retain 100% of their earnings within Indonesia for a full year. The initiative aims to stabilize the rupiah, which has experienced recent volatility.
President Prabowo Subianto, speaking at a press conference in Jakarta on Monday, emphasized the importance of this measure in stabilizing the nation's currency. The government is taking proactive steps to retain foreign exchange earnings domestically, thereby reducing the outflow of funds and strengthening the rupiah.
"The government has mandated that 100% of export earnings from natural resources be placed in the Indonesian financial system for a period of 12 months," said President Prabowo Subianto.
The new rule targets export earnings from resource sectors, including mining and related industries. By retaining these earnings within the country, Indonesia hopes to achieve greater economic stability and counteract the currency fluctuations that have affected the rupiah.
This extension of the lock-up period represents a strategic move by the Indonesian government to secure its economic future. With the rupiah facing challenges, retaining foreign exchange earnings is seen as a vital measure to ensure stability and growth. By implementing this policy, the government aims to create a more resilient financial environment and promote long-term economic benefits.
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