A researcher from the Center of Reform on Economics (CORE) Indonesia, Yusuf Rendy Manilet, has expressed skepticism regarding the effectiveness of the new natural resource export earnings (DHE) regulations in automatically boosting the nation’s foreign exchange reserves. According to Yusuf, the funds held in special accounts at state-owned banks remain the property of the exporters and are not automatically converted into Bank Indonesia’s (BI) official foreign exchange reserves.
Yusuf explained that while the policy successfully increases the supply of dollars within the domestic banking system, these funds do not enter BI’s reserve balance unless they are formally converted or transacted with the central bank. “The impact of this policy is better described as a measure to strengthen domestic foreign exchange liquidity and deepen the local dollar market, rather than a mechanism to directly multiply foreign exchange reserves,” Yusuf stated on Wednesday, May 26, 2026.
While Yusuf acknowledges that the DHE policy serves as an additional layer of defense for the rupiah, he emphasized that it cannot replace the need to improve broader economic fundamentals. He noted that the quality of the trade balance, capital flows, and the government’s fiscal credibility remain the primary drivers of long-term economic stability.
Conversely, Minister of Finance Purbaya Yudhi Sadewa holds a more optimistic view, maintaining that the new DHE regulations will effectively bolster foreign exchange reserves. Speaking at the Jogja Financial Festival, broadcast via the Indonesia Deposit Insurance Corporation’s (LPS) YouTube channel on Friday, May 22, 2026, Purbaya called the move a bold and necessary step. He highlighted that despite previous requirements to convert earnings into rupiah, national reserves failed to see significant growth.
Purbaya pointed out that, previously, businesses tended to convert their earnings into rupiah and distribute them to smaller banks, only to eventually move the funds offshore. This behavior resulted in a paradox where Indonesia experienced consistent trade surpluses without a corresponding increase in its national foreign exchange reserves.
Under the new regulations taking effect on June 1, 2026, exporters are mandated to place their earnings in state-owned banks (Himbara). The oil and gas industry is required to retain 30 percent of their earnings for three months, while non-oil and gas industries must retain 100 percent of their funds for 12 months. Furthermore, the government has adjusted the mandatory conversion limit for foreign currency export earnings into rupiah from 100 percent to 50 percent.
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Summary
CORE Indonesia researcher Yusuf Rendy Manilet argues that new export earnings (DHE) regulations will not automatically increase foreign exchange reserves because the funds remain the property of exporters held in domestic bank accounts. While the policy effectively boosts local dollar liquidity and provides a layer of defense for the rupiah, the funds only become part of Bank Indonesia’s official reserves if they are formally converted or transacted with the central bank.
In contrast, Finance Minister Purbaya Yudhi Sadewa believes these regulations are essential to prevent the previous trend of businesses moving earnings offshore. Starting June 1, 2026, the policy mandates that exporters hold specific portions of their earnings in state-owned banks for set periods to encourage domestic retention. Despite these differing perspectives, experts agree that long-term economic stability still relies heavily on broader fundamentals such as trade balances and fiscal credibility.