JAKARTA, RAKYAT NEWS – Trade Minister Budi Santoso has confirmed that the government’s new Devisa Hasil Ekspor (DHE) policy, which requires exporters to deposit 100% of their foreign exchange earnings in Indonesia for one year, will not negatively affect the nation’s export performance this year.

The policy, which extends from the previous rule mandating a minimum 30% deposit for three months, aims to stabilize the value of the Indonesian rupiah.

Minister Budi emphasized that the extension of the DHE policy is in the interest of the nation, and he believes it will not hinder export targets.

“I think the extension of the DHE will not interfere with this year’s export targets because this is a government policy,” he said in Jakarta on January 22, 2025.

One of the primary reasons behind the DHE extension is to stabilize the exchange rate. As of January 21, 2025, the rupiah had weakened to IDR 16,331 per US dollar, a 4.5% decline from IDR 15,627 per dollar a year earlier. This depreciation is a concern for the government, prompting the need for measures like the DHE policy to manage the currency’s value.

Despite the government’s assurances, the policy has raised concerns among industries, particularly the processed food sector, which includes products like coffee, cocoa, and palm oil.

Adhi S. Lukman, Chairman of the Indonesian Food and Beverage Producers Association (GAPMMI), has suggested that adjustments be made for specific industries affected by the DHE policy.

Adhi explained that while the policy is appropriate for raw commodity exports, its application to processed food manufacturers could lead to increased production costs and reduced competitiveness in export markets.

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