Special account to be opened for export proceeds

Jakarta (ANTARA News) - Bank Indonesia will introduce a regulation on the mechanism for the placement of foreign exchange from export proceeds (DHE) in a special account it would open, BI Governor Perry Warjiyo said.

"It will be issued immediately. Hopefully, it will happen before December," he said at his office here on Friday.

The special account will be opened to ease the control and supervision of DHE that comes in and is put in the domestic financial system.

The government and BI issued the 16th package of economic policies on Friday that includes a policy to obligate the placement of DHE in the domestic financial system. The DHE, which are obligated to be put in the system, are those from natural resource exploitation businesses, particularly those whose exports are valued higher than imports.

Warjiyo said the account was urgently needed to be in harmony with export data and DHE for exporters, the Directorate of Customs and Excise, Bank Indonesia and the Directorate of Tax to ensure effective supervision.

"If the bank is clear, exports are clear, tax office is clear and if eligible, they may get a tax incentive and so it is hoped businessmen, and especially exporters, would welcome it," he said.

Warjiyo said the special account could be in the form of a virtual or special account of DHE of natural resource commodities.

The government will provide a tax incentive on the interest of the term DHE deposit if it is converted into the rupiah. The conversion is not obligatory. The government will still give an incentive for the DHE that is in foreign currency, but the incentive is smaller than that for the DHE in the rupiah.

He said if the DHE were converted into rupiah, the tax for their interest would be only 7.5 percent for one month, five percent for three month and zero percent for placement in the term deposit for more than six months.

If the DHE are in foreign currency, the incentive would be 10 percent for a one-month deposit, 7.5 percent for three months, 2.5 percent for six months and zero percent for more than six months.

According to BI data, the DHE that entered into the national financial system reached 93 percent of total exports but only 15 percent of them were converted into the rupiah.

Before the issuance of the 16th policy package, the government had only obligated exporters to report their DHE and put it in the country without any obligation to put it into the national financial system.

Source: ANTARA News

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