Prabowo Grants DHE Migas Retention Relief of Up to 30 Per Cent

President Prabowo Subianto has officially provided relief on the retention of Export Earnings (DHE) for the oil and gas sector (migas) with a maximum remittance obligation of 30%. The policy was adopted to support the investment climate in the upstream migas sector, which carries high risk and substantial exploration costs.

Energy and Mineral Resources Minister Bahlil Lahadalia explained that unlike the non-migas sector, which is required to remit 100% of DHE into the domestic financial system, migas operators are given greater flexibility. He said this at the IPA Convex event in Tangerang, Banten, on Wednesday, 20 May.

‘What about the DHE, the export earnings funds? The President also said that oil and gas businessmen are all good people; there is no need to suspect them. Therefore, the DHE can also be used by you,’ Bahlil Lahadalia, quoted by Antara, Wednesday (20/5), said.

Bahlil detailed that migas companies are only required to remit a maximum of 10 to 30% of their total DHE. This step reflects the government’s consideration of the upstream migas business characteristics, which require substantial liquidity for sustainable operations.

‘Maka, DHE-nya (migas) pun tidak kami pergunakan yang diminta 100% untuk harus ke dalam negeri. Andaikan pun ada, itu paling tinggi 10–30 persen, maksimal. Selebihnya tidak ada masalah,’ tambah Bahlil.

In addition to the share of remittance, the government is also granting flexibility in terms of retention duration. Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that the retention period for migas DHE in domestic banks is much shorter than in other sectors.

‘Retensi DHE di sektor migas berlaku minimal selama tiga bulan. Sementara itu, retensi DHE berlaku selama 12 bulan untuk sektor nonmigas,’ jelas Airlangga.

Despite the relief in share and duration, Airlangga stressed that the process of repatriation or placement of the DHE must still be carried out through banks that are part of the state-owned Bank Association (Himbara). The policy is expected to help maintain the stability of the Rupiah exchange rate without burdening the cash flow of migas companies.