Bank Indonesia Broadens Export Proceeds Placement to Include Non-Dollar Currencies

Bank Indonesia (BI) is taking a significant step to diversify the management of export proceeds by allowing the placement of foreign currencies other than the US dollar in state-owned banks. This strategic move, announced by BI Governor Perry Warjiyo, aims to deepen the domestic foreign exchange market and offer greater flexibility to Indonesian exporters.

Previously, the placement of export proceeds was heavily dominated by the US dollar. However, with this new policy, exporters can now deposit non-dollar currencies, such as the Chinese Yuan, in Himpunan Bank Milik Negara (Himbara) for terms of up to 12 months. This expansion is particularly relevant given the growing trade relationship between Indonesia and China, with local currency transactions already reaching substantial volumes.

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The currency is also expanded; while it was only the US dollar, now we are also expanding non-US dollars. Because, as you know, we have deepened the foreign exchange market, where the Chinese Yuan is now also transacted domestically.

Governor Warjiyo emphasized that this initiative aligns with BI's broader efforts to strengthen the domestic foreign exchange market and promote the use of local currencies in international trade. The policy, set to be implemented from June 1, 2026, under Government Regulations (PP) No. 2 of 2026 and No. 21 of 2026, also includes provisions for mandatory placement of export proceeds in Himbara banks and adjusts the conversion limit of foreign currency to Indonesian Rupiah. This comprehensive approach seeks to enhance the efficiency and effectiveness of foreign exchange management for Indonesian businesses.

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We have cooperated with these banks, and also cooperated with the central bank in China, that domestically there is already (transactions).