Indonesia Forces Exporters to Keep FX Earnings Onshore

Indonesia is pushing ahead with a plan to force natural resource exporters to keep more foreign exchange earnings onshore in Southeast Asia’s largest economy, aiming to bolster central bank reserves by $80 billion and reverse a slide in the country’s beleaguered currency.

President Prabowo Subianto on Monday said he had signed a regulation requiring exporters across a wide swathe of Indonesia’s natural resources industry — including mining, plantation, forestry and fisheries sectors — to retain all of their overseas earnings in the country for a year.