This is the new regulation from Bank Indonesia regarding export proceeds (hereinafter stated as “DHE”) and import payment proceeds (hereinafter stated as “DPI”) which is effective on August 1, 2024, as follows (“Regulation”)
- Regulation of the Member of the Board of Governors No. 4 of 2023 concerning DHE and DPI
- Regulation of the Member of the Board of Governors No. 6 of 2024 concerning Amendments to Regulation of the Member of the Board of Governors No. 4 of 2023 concerning DHE and DPI
What you need to know
The following are important points related to the DHE from Natural Resources (hereinafter will be stated as “DHE SDA”) and its placement based on the Regulation above:
A. Exporter Obligations related to DHE SDA
- Exporters are required to transfer all DHE received into the Indonesian financial system no later than the end of the third month after the Export Customs Notification (“PPE”) was issued.
- DHE SDA must be placed in a special account (hereinafter referred to as “reksus”) DHE SDA if the PPE value is at least USD250,000 or its equivalent.
- From the funds above, exporting customers are required to make a placement with a value of 30% of the total incoming funds with a minimum period of 3 months.
- [Amendments in accordance with PADG No. 6 of 2024] DHE SDA with a PPE value below USD250,000 is not required to be placed in the reksus DHE SDA. DHE SDA that enters the reksus DHE SDA will be considered a voluntary placement if the customer has filled out a voluntary statement letter. If the voluntary statement letter has not been submitted, the exporting customer is required to transfer out the funds from the reksus DHE SDA.
- Placement of DHE SDA can be done in the following instruments:
a. Reksus DHE SDA;
b. Bank foreign currency deposits (TD DHE SDA); and/or
c. Bank Indonesia instruments in the form of conventional open market operation time deposits in Bank Indonesia foreign currency.
- The above placement instruments can be utilized by customers for:
a. Collateral for IDR loan
b. FX swap transactions (only from Reksus DHE SDA placement).
c. Bank hedging swaps with Bank Indonesia (only for placement in Bank Indonesia instruments).
B. Special Account for Natural Resource Export Proceeds (DHE SDA Special Account)
- Reksus DHE SDA is one of the financial instruments for DHE SDA placement.
- Funds that are allowed to be placed in Reksus DHE SDA are funds originating from:
a. DHE SDA owned by the same natural resource (“SDA”) Exporter;
b. funds from the disbursement of banking instruments and/or payment of interest on banking instruments whose funds are sourced from the reksus DHE SDA owned by the same SDA Exporter;
c. funds originating from other reksus DHE SDA owned by the same SDA Exporter, either at the same Bank, at another Bank, or at the Indonesian Export Financing Institution (“LPEI”);
d. funds from principal repayment and/or interest payments or equivalent, from placement instruments at Bank Indonesia, the funds of which are sourced from the Special DHE SDA Account owned by the same SDA Exporter;
e. deposits of deficiencies in placement obligations as referred to in the Regulation; and/or
f. other sources determined by Bank Indonesia.
- To ensure that funds placed in the Reksus DHE SDA are in accordance with the provisions above, customers are required to submit information related to incoming transactions (Invoice Number and PPE details; in the form of PPE Number, KPBC Code, Date, Currency, and PPE Value) along with supporting documents. Transaction information (in excel format) along with supporting documents must be submitted to the Bank so that funds can be credited to the Special Account. If the documents are not available up to 3 working days before 15.00 WIB after the bank requests the documents, the bank will return the incoming fund transfer.
Supporting documents as referred to above are in the form of PPE documents, invoices, bank statements from the DHE SDA Special Account, and/or other documents that can show that the DHE comes from SDA Exports. - Transactions in the Reksus DHE SDA are limited to transactions related to the placement and utilization of DHE SDA. If the funds will be used for transactions outside the DHE SDA (example: Company operational transactions), customers must transfer funds from the special account to a general account.
C. Time Deposit DHE SDA (TD DHE SDA)
- TD DHE SDA placement funds should come from the reksus DHE SDA. If the placement of TD DHE SDA is conducted for the purpose of topping up the placement shortfall, the funds firstly needs to be transferred into reksus DHE SDA before being placed in the TD DHE SDA.
- Once TD DHE SDA matures, funds will be disbursed back to the reksus DHE SDA. After the funds are returned to the reksus DHE SDA, customers will be able to transfer fund into their general account for Company transactions.
- For placement of Bank foreign currency deposits (DHE SDA Deposits), customers will receive benefits in the form of tax incentives according to the placement period.
