Indonesian Finance Minister Purbaya Yudhi Sadewa announced that the government is preparing a strategy to bring back dollars held overseas by Indonesian citizens.
The plan is designed to encourage Indonesians to keep their funds within the country.
Mr Sadewa said the policy framework is being finalised and is expected to be rolled out within a month.
“This is a market-driven policy, not a forced one. We will provide incentives so that Indonesians choose to keep their dollars here rather than abroad,” he told reporters, following a meeting with President Prabowo at the Presidential Palace, according to a broadcast by the Presidential Secretariat.
Regarding the strategy’s specifics, the former Chair of the Board of Commissioners of the Deposit Insurance Corporation (LPS) said the focus will be on offering incentives. He noted that Indonesian citizens send substantial amounts of money abroad each month, and these measures are expected to help curb that outflow.
Mr Sadewa stressed that retaining these dollars would strengthen the nation’s foreign exchange reserves and allow domestic sources to meet foreign currency needs.
“If we can prevent dollars from leaving the country, our foreign exchange reserves will grow, and our banks will be able to supply more dollars,” he said.