{
    "success": true,
    "data": {
        "id": 1755976,
        "msgid": "indonesia-allows-exporters-to-hold-yuan-for-commodity-earnings-1779542431",
        "date": "2026-05-21 21:13:10",
        "title": "Indonesia allows exporters to hold yuan for commodity earnings",
        "author": "",
        "source": "ANTARA_EN",
        "tags": "",
        "topic": "Regulation",
        "summary": "Bank Indonesia expanded its term-deposit scheme to let exporters park non-USD foreign exchange earnings in state-owned banks for up to 12 months, enabling greater use of the Chinese yuan alongside the US dollar. The move aligns with the central bank\u2019s push to deepen the domestic foreign exchange market through Local Currency Transactions with China, Indonesia\u2019s biggest trading partner, with yuan settlements already exceeding US$25 billion a year and about US$3.7 billion per month so far in 2026. It follows upcoming rules due 1 June 2026 requiring repatriation of proceeds and introduces a lower conversion threshold, allowing firms to retain up to 50 per cent of their proceeds in foreign currency before converting to rupiah.",
        "content": "<p>The expansion of the central bank\u2019s term-deposit scheme enables\nexporters to place non-USD foreign exchange earnings in state-owned\nbanks for tenors of up to 12 months.<\/p>\n<p>Speaking at a regulatory briefing in Jakarta on Thursday, Bank\nIndonesia Governor Perry Warjiyo noted that while natural resource\nexport proceeds (known locally as DHE SDA) were previously dominated by\nthe US dollar, businesses can now make greater use of alternative\ncurrencies.<\/p>\n<p>\u201cWe are expanding the currency options beyond the US dollar,\u201d Warjiyo\nsaid. \u201cBank Indonesia has been deepening the domestic foreign exchange\nmarket, and the Chinese yuan is already actively traded onshore.\u201d<\/p>\n<p>The policy shift aligns with the central bank\u2019s broader push to\ndeepen the domestic forex market through Local Currency Transactions\n(LCT), particularly with China, Indonesia\u2019s largest trading partner.<\/p>\n<p>Warjiyo revealed that bilateral local currency settlements with China\nreached over US$25 billion annually last year. So far in 2026, those\nvolumes have surged to roughly US$3.7 billion per month.<\/p>\n<p>\u201cFollowing agreements with domestic banks and the People\u2019s Bank of\nChina, businesses holding Chinese yuan can now execute spot, swap, and\nforward transactions directly within the domestic market,\u201d Warjiyo\nadded.<\/p>\n<p>The central bank\u2019s adjustment provides operational flexibility for\ncommodity exporters ahead of strict new government regulations set to\ntake effect on June 1, 2026, under Government Regulations No.\u00a02 and\nNo.\u00a021 of 2026.<\/p>\n<p>Under the incoming rules, natural resource exporters must repatriate\n100 percent of their revenues into the Indonesian state banking\nsystem.<\/p>\n<p>From those repatriated funds, exporters are required to retain a\nminimum of 30 percent for oil and gas revenues and 100 percent for\nnon-oil and gas sectors in special domestic accounts.<\/p>\n<p>These funds must be held onshore for at least three months for oil\nand gas, and 12 months for other commodities.<\/p>\n<p>Significantly for foreign investors, the government has lowered the\nmandatory conversion threshold into Indonesian rupiah, allowing\ncompanies to retain up to 50 percent of their proceeds in foreign\ncurrency, down from a previous full (100 percent) conversion\nrequirement.<\/p>\n<p>Related news: Trade Ministry drafts new rule alongside export SOE\nformation<\/p>\n<p>Related news: Purbaya says JCI will rebound after Danantara export\nreform<\/p>\n<p>Translator: Bayu Saputra, Aditya Eko Sigit Wicaksono<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/indonesia-allows-exporters-to-hold-yuan-for-commodity-earnings-1779542431",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}