Businesses Request Fisheries Exclusion from DHE SDA Policy in Letter to Airlangga

Jakarta, CNBC Indonesia - The Indonesian Fishery Processing and Marketing Producers Association (AP5I) has requested that the government exclude the fisheries sector from the Foreign Exchange from Natural Resource Exports (DHE SDA) regulation under Presidential Regulation No. 8/2025.

The request was conveyed in a letter to Coordinating Minister for Economic Affairs Airlangga Hartarto, outlining several concerns regarding the government’s plan.

The association explained that its members, primarily shrimp processing and marketing businesses, export 62% of their production to the United States (US).

They are experiencing delayed payments from US buyers due to a 2025 case of Cesium-137 radioactive contamination, which has resulted in payments only being released after US Customs clearance, typically three to four months after shipment from Indonesia.

Additionally, businesses must pay a 3.9% anti-dumping tariff on top of the US’s 10% global tariff to enter the market.

The payment delays have nearly doubled working capital requirements for shrimp exports to the US.

Industrial fuel costs have risen over 70% compared to 2026, while shipping costs to the US have increased by 34-55% per container.

These cost increases have also driven up raw material purchase prices for processing industries.

“AP51, whose members are predominantly fisheries exporters, urgently require all foreign exchange earnings to reinvest in raw materials and other operational needs,” stated the letter signed by AP51 Chairman Saut P Hutagalung, dated 31 May 2026.

Under PP 8/2025, the conversion limit for DHE foreign exchange to rupiah has been reduced from 100% to a maximum of 50% over 12 months. The association warns this policy could disrupt company cash flows.

This could lead to a significant drop in exports, reduced export volumes, weakened global competitiveness of Indonesian fisheries products, and potential business closures.

Furthermore, AP51 noted the policy may result in job losses within the processing industry.

“Given these issues, we request the fisheries sector be exempted from DHE SDA retention obligations,” the letter concludes.