DHE SDA Policy to Bolster Indonesia's Foreign Currency Liquidity and External Resilience

Yusuf Rendy Manilet, an economist at the Center of Reform on Economics (CORE), believes that the government’s new policy regarding foreign exchange from natural resource exports (DHE SDA) could serve as an additional layer of defence for Indonesia’s external stability. “This policy can strengthen domestic foreign currency liquidity, aid market stabilisation, and provide greater breathing room for the financial system,” he said on Monday, 1 June 2026. He added that the move aligns with government efforts to maintain US dollar availability domestically amid ongoing pressure on the rupiah exchange rate and global economic uncertainty. Yusuf noted that previously, most DHE did not remain in the domestic financial system for long, as it was immediately converted to rupiah or used for other purposes, leading to relatively limited US dollar supply in the domestic market. In this context, he argued that the primary benefit of the policy is not a direct increase in national foreign exchange reserves, but rather an increase in dollar liquidity within the national banking system. With greater foreign currency liquidity, the domestic financial market is better equipped to absorb external shocks, while banks gain increased access to US dollar funding. On the other hand, Yusuf identified another potential benefit: using DHE funds as loan collateral. This scheme allows exporters to maintain liquidity flexibility while banks can extend financing with more measured risk. “If idle funds can be used as collateral for working capital financing, then exporters retain liquidity flexibility while banks gain opportunities for credit expansion with relatively low risk. It is at this stage that liquidity begins to transform into productive economic activity,” he said. Additionally, tax incentives prepared by the government are expected to encourage exporters to retain funds domestically for longer, thereby bolstering national foreign currency supply. However, Yusuf noted that the policy’s effectiveness still depends on the financial system’s ability to channel this liquidity into productive sectors, ensuring that stored funds not only stabilise markets but also drive economic activity and value creation.