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Energy & Natural Resources

11 February 2019
Giffy Pardede Repatriation of natural resource export earnings: new regulation signals stricter approach

Indonesia - Ali Budiardjo, Nugroho, Reksodiputro

Government Regulation 1/2019 requires exporters in the natural resources sector to repatriate their forex-denominated export earnings to Indonesia. Thus, forex-denominated export proceeds in the mining, plantation, forestry and fisheries sectors must be deposited in the Indonesian financial system. Overall, the regulation is clearly intended to bolster Indonesia's balance of payments situation, which has worsened considerably over the past year.

Authors: Giffy Pardede, Mahatma Hadhi
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