Can Storing Natural Resource Export Proceeds Domestically Be Tax-Free? Purbaya Explains

Finance Minister Purbaya Yudhi Sadewa stated that businesses complying with depositing Natural Resource Export Proceeds (DHE) into domestic financial systems are eligible for tax incentives of up to 0%. The government mandates exporters to repatriate and deposit foreign exchange domestically under Government Regulation (PP) No. 21 of 2026, amending PP No. 36 of 2023 on Foreign Exchange from Natural Resource Exploitation, Management, and/or Processing. “The government offers tax facilities for exporters who comply with depositing Natural Resource Export Proceeds domestically. This includes a lower Income Tax (PPh) rate compared to regular investment instruments,” Purbaya Yudhi Sadewa said in Jakarta on Sunday. He stated that the tax rates and incentives for each business will depend on the duration of the fund deposit. He noted that a 0% withholding tax on Natural Resource Export Proceeds deposits is more beneficial for exporters than regular investment instruments, which can incur up to 20% tax. “Typically, bond yields are taxed at 20%. If the funds come from Natural Resource Export Proceeds, the tax on that instrument is 0%,” Purbaya said. He explained that the new regulation, effective Monday (1 June), mandates natural resource commodity exporters to repatriate their DHE domestically with 100% compliance. He stated that oil and gas (migas) commodity exporters must deposit at least 30% of their Natural Resource Export Proceeds for a minimum of three months. Non-oil and gas commodity exporters are required to deposit 100% of their Natural Resource Export Proceeds in a dedicated domestic account for at least 12 months. The export proceeds must be deposited through accounts of members of the State Banks Association (Himbara). Additionally, the government restricts the conversion of Natural Resource Export Proceeds from foreign currency to rupiah to a maximum of 50%. Although Natural Resource Export Proceeds must be deposited through Himbara banks, Purbaya noted relaxations for oil and gas and non-oil and gas mining exporters with buyers from countries that have bilateral trade agreements or cooperation with Indonesia. “Exporters bound by bilateral agreements are permitted to deposit up to 30% of their Natural Resource Export Proceeds in non-Himbara banks, with a maximum holding period of three months,” he added.