Coordinating Minister Airlangga explains the technical rules for foreign exchange earnings from natural resource exports

In Jakarta, Coordinating Minister for Economic Affairs Airlangga Hartarto explained the technical rules on the management of foreign exchange earnings from natural resource exports (DHE SDA) arising from activities of exploitation and management within the country. Airlangga in a press conference in Jakarta, on Wednesday stated that the President had explained that the changes to the rules are made to ensure that the contributions of exporters in the natural resources sector can be optimised for the prosperity of the people in line with the mandate of Article 33 Paragraph 3 of the 1945 Constitution. According to him, the policy aims to encourage development financing, particularly investment and capital to spur the downstreaming of natural resources. In addition, the regulation contained in PP 21/2026 is directed to increasing investment and export performance of the natural resources sector as well as supporting macroeconomic stability and the domestic financial market. He explained that natural resource exporters are required to place DHE with a minimum retention of 30 percent for the oil and gas industry and 100 percent for the non-oil and gas industry into a special account in the Indonesian financial system. The placement must be maintained for at least three months for the oil and gas sector and 12 months for the non-oil and gas sector. “Then the inflow or repatriation of the retention of natural resource DHE must be made through Himbara banks (State-Owned Banks Association). So I reiterate again, the retention of natural resource DHE must be carried out through Himbara banks,” he said. The government also expands exemptions from placing DHE in non-Himbara banks, particularly for the mining sectors oil and gas and non-oil and gas derived from partner countries that have trade cooperation agreements or memorandums of understanding with Indonesia. In addition, the government lowers the currency conversion limit for foreign exchange earnings from exports to rupiah from 100 percent to 50 percent, specifically for those implementing bilateral trade agreements or memoranda of understanding with Indonesia. “The incentive for placing the natural resource DHE includes a personal income tax (PPh) rate of up to 0 percent according to the placement duration for income earned by the DHE SDA placement instrument compared with the instrument that is taxed up to 20 percent. This regulation will take effect on June 1, 2026,” he said.