On February 17, Indonesian President Prabowo Subianto issued Government Decree No. 36, mandating that, starting March 1, all exporters of natural resource-based commodities—including minerals, agricultural products, timber, and seafood—must deposit 100% of their foreign trade earnings into Indonesian banks for a minimum of one year.
President Subianto stated that this move aims to boost Indonesia’s foreign exchange reserves by up to $880 billion. He criticized exporters for previously keeping much of their revenue in overseas banks, which he said benefited other nations more than Indonesia.
As of January 2025, the country’s foreign exchange reserves stood at $1,156.1 billion. Under the new policy, exporters will still be able to convert foreign currency into Indonesian rupiah at any time to support local operations. They may also use foreign currency for tax payments, interest, and importing goods not available domestically. However, failure to comply with the regulation will result in administrative sanctions, including potential suspension of export activities.
Until now, Indonesian law only required exporters to deposit 30% of foreign income in domestic banks for at least three months—a rule that has long drawn complaints from the business community.
The United States is a major market for Indonesian seafood, importing 217,121 tons worth approximately $2.5 billion in 2024. Gavin Gibbons, Chief Strategy Officer of the National Fisheries Institute (NFI), expressed concern about the new decree, saying, “Unfortunately, Indonesia’s new policy may hinder seafood trade with the U.S. and impact Indonesia’s sustainability initiatives. We hope policymakers will consider reasonable adjustments.”
Indonesia is currently the top supplier of blue swimming crab (also known as pike crab) to the U.S., exporting 12,860 tons in 2024 valued at $326 million—a year-on-year increase. These crabs represent nearly 50% of total U.S. imports of the species (27,732 tons). In December alone, the average import price reached $10.39 per pound, meaning a single 36,000-pound shipping container of crab meat was worth roughly $374,000.
Industry sources note that Indonesian exporters typically rely on credit lines and must withdraw funds with each shipment. If funds are tied up in local banks for a full year, they won’t be accessible for regular operations. As export volumes grow, credit needs rise rapidly—and locking up capital for that long could cripple exporters’ cash flow.
“Exporters with tight liquidity will be pushed to the edge,” warned Donelson Berger, product manager at U.S. importer Stavis Seafoods. He added that only a few companies could absorb the added loan interest costs—those that can would likely pass them on to consumers, making Indonesian seafood more expensive in the U.S. market.
Indonesia is also the third-largest supplier of shrimp to the U.S., after India and Ecuador. In 2024, the U.S. imported roughly 135,000 tons of shrimp from Indonesia, valued at $1 billion—a decline of 8% and 12% year-on-year, respectively. Additionally, the country exported 29,360 tons of tuna to the U.S. in 2024, worth $225.5 million.
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