Finance Minister Purbaya Announces Tax Incentives for Repatriated Export Foreign Exchange

Finance Minister Purbaya Yudhi Sadewa stated that businesses complying with regulations by depositing Foreign Exchange Earnings from Natural Resources (DHE SDA) into the domestic financial system are eligible for tax incentives of up to 0 per cent. The government mandates exporters to repatriate and deposit foreign exchange earnings domestically under Government Regulation (PP) No. 21 of 2026, which amends PP No. 36 of 2023 concerning Foreign Exchange Earnings from Natural Resource Exploitation, Management, and/or Processing. “The government offers tax facilities to exporters who comply by depositing DHE SDA domestically, including lower Income Tax (PPh) rates compared to regular investment instruments,” Purbaya said at a press conference in Jakarta on Sunday, 31 May 2026. He stated that the tax rates and incentives provided to each business would depend on the duration of fund placement. Purbaya said the 0 per cent income tax deduction incentive for DHE SDA placement is more advantageous for exporters than regular investment instruments, which can be taxed up to 20 per cent. “Typically, bond yields are taxed at 20 per cent, but for DHE SDA placements, the tax rate is 0 per cent,” Purbaya said. The new regulation, effective from Monday, 1 June 2026, requires natural resource commodity exporters to repatriate 100 per cent of their DHE domestically. Oil and gas (migas) exporters must deposit at least 30 per cent of their DHE SDA for a minimum of three months, while non-migas commodity exporters are required to place 100 per cent of their DHE SDA in domestic special accounts for at least 12 months. Export proceeds must be deposited via accounts of Himbara member banks. Additionally, the government limits the conversion of DHE SDA from foreign currency to rupiah to a maximum of 50 per cent. Although DHE SDA must be deposited via Himbara banks, Purbaya noted relaxations for oil, gas, and non-migas mining exporters with buyers from countries that have bilateral trade agreements or partnerships with Indonesia.