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Gaining Grounds on Trade and Rupiah Security

The Indonesian Government obligated exporters to save their incomes in the domestic bank, instead the foreign exchange reserves plummeted in December 2022. A number of US$7,7 billion had declined compared to the previous year. Uncertainty about the global financial market is believed to cause the downfall. The Indonesian President, Jokowi, took action to evaluate the current export earnings (DHE) regulation. As a result, Jokowi demanded that his subordinates thoroughly revise PP No.1/2019, circulating the DHE regulation on natural resources. The Coordinating Minister for the Economy, Airlangga Hartarto, stated that this endeavor surged in hopes of simultaneously increasing exports and foreign exchange reserves. Other developing countries such as Thailand and India have previously established a regulation in which they store their incomes within six months (Thailand) or a year (India). Unfortunately, The Indonesian Government has yet to make their approach to this subject. As far as additions of new sectors to the PP No.1/2019, the manufacturing sector is still in talks to be included in it. Airlangga added that the current mandatory sectors stated in the regulation are mining, plantations, forestry, and fisheries. Airlangga Hartanto conveyed this according to President Jokowi's direction in a limited cabinet meeting at the Presidential Palace, Wednesday (11/1/2023).

A record high of US$268,2 billio