Indonesia Tightens Rules on Export Proceeds from Natural Resources

New Regulations for State-Owned Banks

The Indonesian government, in coordination with Bank Indonesia, has introduced new regulations regarding the management of export proceeds from natural resources (DHE SDA). Starting January 1, 2026, exporters will be required to place 100% of their foreign exchange earnings from natural resources in state-owned banks (Himbara) ¹

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https://nasional.kontan.co.id/news/eksportir-wajib-tempatkan-dhe-sda-100-di-himbara-mulai-2026-konversi-ke-rupiah-50

. This measure is part of a broader effort to strengthen the country's foreign exchange reserves and stabilize the rupiah.

Key Features of the New Regulation

1. Mandatory Placement in Himbara: Export proceeds must be placed in banks that are members of Himpunan Bank Milik Negara (Himbara), which includes major state-owned banks such as Mandiri, BRI, BNI, and BTN.
2. Conversion to Rupiah: The new rules also introduce a 50% limit on converting foreign exchange earnings to rupiah. This means that exporters can retain up to 50% of their earnings in foreign currency, while the remaining portion must be converted to rupiah.
3. Retention and Utilization: The regulations maintain the existing 100% retention period for non-oil and gas export proceeds for 12 months. Exporters are allowed to use their foreign exchange earnings for various purposes, including the procurement of goods, services, and working capital.

Rationale Behind the Policy

The government's decision to revise the existing regulations was driven by the need to enhance the effectiveness of the policy in boosting foreign exchange reserves. The previous framework was deemed insufficient in achieving the desired outcomes, prompting the need for a more stringent approach. By mandating the placement of export proceeds in state-owned banks, the government aims to have better control over foreign exchange inflows and improve the overall stability of the financial system.

Implications for Exporters and Banks

The new regulations will likely have significant implications for exporters, particularly those in the natural resources sector. Companies will need to adjust their foreign exchange management practices to comply with the mandatory placement requirement. State-owned banks, on the other hand, are expected to benefit from the increased inflow of foreign exchange deposits, potentially enhancing their liquidity and capacity to support trade financing.