ANNOUNCEMENT 30 Sep 2015In September 2015, the government of Indonesia announced a change in the private sector requirements to balance imports and exports.
NUMBER OF INTERVENTIONS
Press release by the Ministry for Economic Affairs (in Bahasa Indonesia)
Secondary Source, article by CNNIndonesia interviewing the Finance Minister (in Bahasa Indonesia)
On 30 September 2015, the Indonesian Ministry for Economic Affairs announced that the country's central bank implemented a number of measures to halt the fall of the Indonesian rupiah (IDR).
The steps included a reduced tax on interest earned from designated foreign currency accounts - set at 20% until now . The eligible accounts contain foreign currency receipts of Indonesian exporters ("Devisa Hasil Ekspor", DHE - Indonesian for "foreign currency earnings from export activities").
The tax relief rewards Indonesia exporters for keeping foreign currency holdings rather than spending them on overseas purchases. An additional incentive is proposed for DHE conversion into the Indonesian rupiah.
In an interview with CNNIndonesia (cf. Sources), the Finance Minister said the tax would drop to 10% if the foreign currency (he explicitly only referred to the American dollar) was held in the Indonesian account for at least 1 month. It would further drop to 7.5 for 3 months and 2.5 for 6 months. If the exporters held their US-Dollar holdings for more than half a year, the tax will be completely dropped.
According to the Ministry, this move should encourage keeping the foreign currency earnings longer in the country.