IMA Requests Export Earnings Regulation to Consider Business Sustainability Capacity
Jakarta, Indonesia – The Indonesian Mining Association (IMA) has expressed concerns about the government’s plan to increase the mandatory retention of export earnings, warning that it could negatively impact the mining sector. The current policy requires businesses to keep 30% of their export revenue for three months, but there is a proposal to increase that to 50% for 12 months.
The mining industry acknowledges the government’s goal of enhancing foreign exchange liquidity and stabilizing the macroeconomy with this policy. However, the IMA emphasized that any policy must also ensure the sustainability of company operations and the industry as a whole. Rachmat Makkasau, Chairman of the Indonesian Mining Association, stated that the mining industry is committed to supporting President Prabowo’s economic policies, but the policies should not impede the industry’s operations. Mining operations require significant investment and working capital, including substantial funding for infrastructure development.
The association points out that the increased retention of export earnings would have a considerable impact on the cash flow of mining companies. The mining sector has already faced challenges, and such a policy could lead to negative consequences for the companies and their stakeholders. Despite these challenges, mining companies remain committed to contributing to the country through significant investment.
The Indonesian Ministry of Energy and Mineral Resources (ESDM) has also noted the increasing contribution of the mining sector to state revenue, which grew from Rp 29 trillion in 2014 to Rp 142 trillion in 2024. The IMA hopes that the government will consider a more flexible approach to the Domestic Export Earnings policy, one that supports rather than hinders the mining industry. “We hope the DHE policy can ensure that investment in the mineral and coal sector is not hampered. The DHE policy should be more flexible and support the mining business,” said the IMA on Wednesday (15/1).
