Indonesia Sets Regulations on the Placement of Natural Resource Export Forex

RRI.CO.ID, Jakarta – The Indonesian government has introduced flexibility in placing Foreign Exchange Proceeds from Natural Resource Exports (DHE SDA) under Article 18A of Government Regulation (PP) No. 21/2026.

Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, said four decisions regarding the implementation of Article 18A were agreed upon during a Ministerial-Level Coordination Meeting on July 23, 2026.

These decisions cover the designation of partner countries, the criteria for exporters, the designation of foreign exchange banks for DHE SDA placement, and the mechanism for channeling exporter data to determine the list of eligible exporters.

The core provision of DHE SDA requires the repatriation of 100 percent of export proceeds into Indonesia’s financial system. For the oil and gas sector, a retention requirement of at least 30 percent for three months applies.

For the non-oil and gas sector, exporters must place 100 percent of DHE SDA in state-owned foreign exchange banks (Bank Devisa BUMN) for 12 months.

The use of non-oil and gas DHE SDA remains permitted for five purposes: conversion into rupiah up to a maximum of 50 percent; payment of obligations to the government, including taxes and non-tax state revenue (PNBP); payment of foreign currency dividends; procurement of goods and services, including capital goods; and repayment of loans and working capital, provided the funds remain deposited in a Special Foreign Exchange Account.

“Meanwhile, Article 18A of PP No. 21/2026 sets out specific provisions for implementing bilateral trade agreements or other trade-related understandings,” Susiwijono said in Jakarta on Saturday, August 29, 2026.

For DHE SDA originating from the mining sector, the provisions include a retention requirement of at least 30 percent for a minimum of three months from the date of placement in the Special DHE SDA Account. Placement and conversion into rupiah may be conducted at banks engaged in foreign exchange operations.

The government has designated five countries that meet the criteria of Article 18A: the United States, China, Hong Kong, Australia, and Canada. “These five countries represent the largest investors in Indonesia’s mining sector,” Susiwijono said.

These countries also have bilateral trade agreements or other trade-related understandings with Indonesia. Their selection ensures that the benefits of Article 18A are appropriately targeted.

From the exporters’ perspective, three criteria must be met to qualify for the Article 18A facility: the exporter must be a mining company organized as a Limited Liability Company (PT); must have at least one shareholder from a designated partner country; and must have a minimum ownership stake of 10 percent.

“The list of eligible exporters will be published no later than the second week of October on Bank Indonesia’s official website. These exporters will also serve as the basis for monitoring compliance with DHE SDA obligations for the September Export Customs Declaration,” Susiwijono said.

Meanwhile, 15 foreign exchange banks have been designated as depositories for the Special DHE SDA Accounts for exporters utilizing Article 18A.

Five state-owned foreign exchange banks have been designated: Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), Bank Tabungan Negara (BTN), and Bank Syariah Indonesia (BSI).

The designated non-state-owned foreign exchange banks are Standard Chartered Bank, Deutsche Bank AG, MUFG Bank, Ltd., JPMorgan Chase Bank, N.A., Citibank, N.A., Bank of China, PT Bank ICBC Indonesia, PT Bank China Construction Bank Indonesia Tbk, PT Bank SMBC Indonesia Tbk, and PT Bank HSBC Indonesia. (Gusti Panji)