DHE Must Be Parked in State-Owned Banks (Himbara), Rupiah Could Strengthen to Rp16,800/US$

Jakarta, CNBC Indonesia – The Indonesian government has announced a new policy regarding the obligation to place export proceeds (DHE) from natural resources (SDA) in state-owned banks (BUMN) as of 1 June 2026.

Under Government Regulation (PP) No. 21 of 2026, 100% of the DHE must be parked in the state-owned bank cluster Himbara, with a retention requirement of 30% of the DHE for three months for the oil and gas sector and 100% for 12 months for the non-oil and gas sector in a dedicated account. Additionally, exporters must comply with repatriating their dollars held abroad back into the economy and deposited in Himbara, with a conversion cap of 50%.

With this policy aimed at maintaining domestic-dollar supply, economists expect the rupiah’s exchange rate against the US dollar to strengthen, as the supply of dollars would become more robust.

‘If implemented consistently, it should increase the supply of US dollars and ultimately strengthen the rupiah,’ said Andry Asmoro, Chief Economist at Bank Mandiri, quoted Thursday (21 May 2026).

The robust dollar supply from the DHE obligation could support exchange-rate stability and even be able to withstand global shocks, as sentiment may be less influential.

‘The hope is that this forex supply can be stronger to counter the impact of global sentiment on the rupiah,’ said Hosianna Situmorang, economist at Bank Danamon.

The policy, designed to safeguard the domestic dollar supply, even has the potential to reverse the rupiah’s trajectory against the US dollar toward appreciation, potentially reaching the government’s target range.

As noted, in the Macro Economic Framework and the Fiscal Policy Pillars (KEMPPKF) 2027, the government targets the rupiah to move in the range of Rp16,800– Rp17,500 per US$.

‘At least toward the government target in the range of Rp16,800-17,500,’ said Hosianna, adding that it is possible but one must consider its effects on Indonesia’s export competitiveness relative to other Asian countries.

This week the rupiah has faced significant pressure, hovering around the upper Rp17,600s. According to Refinitiv, the rupiah closed 0.54% stronger at Rp17,600 per US$ on Wednesday, 20 May 2026, reversing Tuesday’s close of Rp17,695 per US$.

During trading, the rupiah moved fairly volatile. At the start, it opened 0.20% weaker at Rp17,730 per US$, briefly touching Rp17,745. It then turned higher following the announcement of the BI Rate hike.

Meanwhile, the US dollar index (DXY), measuring the greenback against six major currencies, was firmer. At 15:00 WIB, the DXY was up 0.06% at 99.388.