Indonesia exempts natural resource exporters from income tax

Key facts

• Indonesia will exempt natural resource exporters' earnings placed in domestic banks from income tax.
• The measure aims to boost Indonesia's FX reserves and reduce pressure on the rupiah.
• New FX rules for exporters were implemented on June 1.
• Oil and gas exporters must keep 30% of revenues in state banks for 3 months.
• Other natural resource exporters must keep 100% of revenues in state banks for 12 months.
• The government is also conducting bond buybacks to stabilize prices.

Indonesia's government is implementing new measures to stabilize its currency, the rupiah, and bolster foreign exchange reserves. The country faces pressure on its currency due to global economic conditions and capital flows. These actions are part of a broader strategy to manage the economy and attract foreign investment.