Market Chatter: Indonesia to Offer Flexibility for US Exports Under Earning Retention Policy
Indonesia is easing rules requiring natural resource explorers to retain a portion of their earnings in state-owned banks for mining exports to the US, among other countries, The Jakarta Globe reported Thursday, citing a senior official.Under a new policy, the state is requiring businesses to place 100% earnings into state-owned banks for at least a year, except firms in the oil sector, which need to park 30% for a minimum of three months.However, companies exporting to nations with trade agreements or a mutual understanding with Indonesia will see some flexibility, the report said, citing Chief Economic Affairs Minister Airlangga Hartarto.They will be required to put 30% of the proceeds for at least three months in state or certain non-state banks fitting specific criteria, the report quoted Airlangga as saying.Airlangga identified the U.S. as a trade partner eligible for the exemptions without naming any others. The two nations had signed a tariff deal in February, according to the report.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)