100% Repatriation of Natural Resource Export Earnings Required From June 2026

The government has officially tightened the rules governing Devisa Hasil Ekspor (DHE) for the Sumber Daya Alam (SDA) sector by mandating 100% repatriation of funds into the domestic financial system starting 1 June 2026. The policy, contained in the third revision to Government Regulation No. 36 of 2023, aims to bolster national foreign exchange liquidity and support financing for development and the downstreaming of industry. “The key provision is that exporters of natural resources must place 100% of their DHE SDA into the Indonesian financial system or repatriate it with 100% compliance,” Airlangga Hartarto, Minister Coordinating Economic Affairs, said at a press conference at the DPR building, Jakarta, on Wednesday 20 May. Under the technical scheme, the government differentiates retention durations by sector. For the oil and gas sector (migas), exporters must place at least 30% of DHE for three months. Meanwhile, the non-migas sector is subject to a 100% DHE placement for at least 12 months in a Bank Himbara special account. Notably, the government has also adjusted the foreign exchange conversion policy. The maximum conversion of DHE from foreign currency into the Rupiah has been reduced to 50%, from the previous 100%. This move provides flexibility for exporters while preserving the supply of foreign currency in the domestic market. As compensation for the tightening, the government offers competitive fiscal incentives. Exporters who park their funds domestically stand to obtain an Income Tax (PPh) rate of up to 0% on the placement instrument, depending on the placement duration. Airlangga said the incentive for DHE placement could carry a PPh rate of 0% according to the duration of placement. In addition, there is a special exemption for trading partner countries with strategic agreements with Indonesia. Mining exporters from partner countries are allowed to place a 30% retention for three months in non-Himbara banks as part of priority international cooperation. Through this policy, the government is optimistic that foreign exchange from the SDA sector will no longer linger abroad, but will become a driver of domestic financing and the acceleration of the nation’s downstream industries.