Tax Incentive for Placing Export Foreign Exchange

The Government, through Government Regulation No. 22 of 2024, provides a final income‑tax incentive for exporters who place export foreign exchange into designated financial instruments. This placement requirement is stipulated in Government Regulation No.

Eligible instruments include bank deposits, Bank Indonesia open‑market operation term deposits, promissory notes issued by the Export Financing Agency (LPEI), and other instruments defined by the Finance Minister. When the funds are placed for at least one month and are not traded on secondary markets, the final tax rate can be reduced according to a matrix that links the rate to the placement duration.

The lower rate allows exporters to lower their tax burden while earning income from the placement. The measure aims to channel more foreign exchange into the domestic financial system and support the stability of the rupiah exchange rate.