Coal Export Proceeds Must Be 100% Deposited in Indonesia, Explains Purbaya

Finance Minister Purbaya Yudhi Sadewa has explained that the government is officially implementing new provisions regarding Export Proceeds from Natural Resources (DHE SDA), specifically through Government Regulation (PP) Number 21 of 2026, which takes effect on 1 June 2026. Purbaya noted that although 1 June 2026 falls on a holiday, the regulations will remain in force as export activities continue uninterrupted.

Under PP 21/2026, the government has introduced several new rules regarding the placement of DHE SDA. Notably, natural resource exporters are required to repatriate export proceeds to the country with a 100% compliance rate. For non-oil and gas exporters, the government mandates that 100% of these proceeds must be placed in special domestic accounts for a minimum period of 12 months. For oil and gas exporters, the mandatory placement is set at a minimum of 30% for at least three months.

These funds must be deposited through state-owned banks (Bank Himbara). Additionally, the government is limiting the conversion of DHE SDA from foreign currency to Rupiah; exporters are only permitted to convert a maximum of 50% of their export proceeds into Rupiah.

However, the government is providing relaxation for certain exporters in both the oil and gas and non-oil and gas sectors who deal with buyers from countries that have bilateral trade agreements with Indonesia. Under this scheme, such exporters are permitted to place a portion of their export proceeds in non-Himbara banks. For those under bilateral agreements, the portion placed in non-Himbara banks is capped at 30% for a maximum duration of three months.

To encourage compliance, the government will also provide tax incentives, including lower income tax (PPh) rates compared to regular instruments. The PPh rate on income and placement instruments for DHE SDA can reach as low as 0%, with the specific rate adjusting based on the duration of the fund placement. This is significantly lower than the standard tax rate of up to 20% applied to regular instruments.