Bahlil Reveals DHE Rules in the Oil and Gas Industry, Here Is the Explanation

Tangerang, CNBC Indonesia - The government has set a policy requiring 100% parking of foreign exchange earnings (DHE) from exports for natural resource commodities. The obligation is set out in the latest Government Regulation (PP) on the obligation to put DHE in state-owned banks (Himbara) starting 1 June 2026. However there are exemptions for exporters not required to place DHE in Himbara, including the oil and gas sector.

Energy and Mineral Resources Minister Bahlil Lahadalia initially said the obligation to store DHE domestically did not have to be applied to the upstream oil and gas industry, to provide business certainty for the oil and gas industry. At least the government would give flexibility to oil and gas companies in using their export earnings. “DHE and export revenue, Mr President says, DHE please use, you can use as you wish, you don’t need the PP, so there is no need to worry about certainty regarding the oil and gas rules,” he told investors at the opening of The 50th IPA Convention & Exhibition Convex at ICE BSD, Tangerang Regency, on Wednesday 20 May 2026.

But later, when asked by reporters after the event, Bahlil explained that even if upstream oil and gas must follow DHE rules, a maximum of 10%-30% would be applied. He said this policy is given because the majority of upstream oil and gas investments in Indonesia are large and sourced from foreign loans that must be repaid using foreign currency. Also, investment certainty for the oil and gas sector must be safeguarded given the risk profile and funding schemes differ from other sectors.

“Therefore the DHE, because the investment is mostly financed with external borrowing, we will not use 100% to be retained domestically. If anything, it will be at most 10-30%. The rest is not a problem; roughly speaking,” he told reporters after the IPA Convex opening.

The government regards oil and gas exports as having tight oversight due to long-term contracts. This closes potential loopholes for price manipulation or capital flight that are often concerns in commodities trade.

“And for foreign markets, we already operate long-term contracts, and that almost guarantees there is no transfer pricing or under-invoicing,” said Bahlil.

He also stressed that the exemptions would apply for a long period for the oil and gas sector to align with long-term cooperation contracts. He noted that the oil and gas industry requires strong regulatory stability because each field development contract lasts at least twenty years.

“Migas forever. Because contracts cannot be set year by year; they last at least twenty years, and can be extended while oil or gas remains,” he said.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that President Prabowo Subianto had signed the latest Government Regulation governing the obligation to place DHE in state-owned banks starting 1 June 2026.

But he said the obligation to park DHE in Himbara includes exemptions. “The revision in the policy within the PP is to widen the exemptions for DHE placement to non-Himbara for the mining, oil and gas, and non-oil and gas sectors,” Airlangga said at the DPR Building complex, Jakarta, on Wednesday (20 May 2026).

Airlangga said the exemptions to the 100% DHE placement in Himbara would apply for exporters transacting with partner countries or countries that have signed trade agreements or arrangements with Indonesia.

Furthermore, exporters that have complied 100% with repatriation of the Indonesian DHE and have implemented retention of 30% of their DHE for 3 months for the oil and gas sector and 100% for 12 months for non-oil and gas into a special account will also be exempt.

These exporters must first comply with repatriation in Himbara with a conversion limit reduced from 100% to 50%.

As for the mining sector, the retention limit is 30% to be placed in non-Himbara banks with a minimum of 3 months.

“So those that have bilateral agreements can place 30% for 3 months in non-Himbara banks,” Airlangga noted.

The PP also provides DHE placement incentives, including tax treatment (PPh) up to 0% depending on placement duration, and income earned from placement instruments.

“If the instrument is regular, tax is charged up to 20%. And this regulation will take effect on 1 July 2026,” Airlangga said.

(wia)