JAKARTA, Jan 22 Reuters Indonesia will exempt oil and gas exporters from its new rule that all proceeds from natural resource exports be kept onshore for a year, as companies urge adjustments to the rule out of concern over its impact on their cashflows.

On Tuesday, Jakarta said the new rule would take effect on March 1 and apply to every export with a shipping document worth at least 250,000.

Currently, exporters are only obliged to retain 30 of total proceeds for a minimum of three months, which has already pushed up interest expenses for some exporters.

Jakarta said the move is needed to shore up U.S. dollar supply in the largest economy in Southeast Asia, helping its efforts to stabilise rupiah, which hit a 6month low in January.

Oil and gas exporters will be exempted from the new policy due to the nature of their business, Susiwijono Moegiarso, an official at Coordinating Ministry of Economic Affairs, told reporters on Wednesday.

The Association of Oil and Gas Companies has asked for a gradual implementation of the rule due to its potentially extraordinary impact on cashflow for their operational costs, Moshe Rizal, the head of the group39;s investment committee, said earlier on Wednesday.

It was unclear whether they will still be required to fulfill the current 30 retention rule.

Susiwijono said the government will speak with companies later this week to get their feedback and discuss incentives.

To tackle the working capital issue, the government has said…