Indonesia Broadens Export Proceeds Relief, Adding Key Trading Partners and Expanding Custodian Banks to 16

JAKARTA, Investortrust.id — The Indonesian government has widened the eligibility criteria for natural resource export proceeds (DHE SDA) incentives, adding South Korea, Japan, and the European Union to its preferential framework while expanding custodian banks to 16 financial institutions.

The regulatory adjustments, implemented through Government Regulation (PP) No. 21 of 2026 as an amendment to PP No. 2 of 2026, raise the number of recognized trade destinations enjoying special relief from five to eight jurisdictions. The original cohort comprised the United States, Canada, China including Hong Kong, and Australia.

Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that the extension accommodates trade dynamics rooted in bilateral treaties, memorandums of understanding, and international commerce agreements.

"The countries designated as having fulfilled the requirements in Article 18A have been expanded from five to eight with the addition of three jurisdictions: South Korea, Japan, and the European Union," Airlangga said during a press conference on the implementation of the natural resource export proceeds rules in Jakarta on Friday (6/11/2026).

Under Article 18A of the updated decree, qualifying mining exporters outside the oil and gas sector gain access to a flexible placement tier. Instead of the standard mandate requiring 100 percent of export earnings to stay onshore for 12 months, eligible miners can place a minimum of 30 percent for at least three months. The remaining 70 percent may be utilized freely to meet company financing and operational requirements.

To benefit from this carve-out, the government also revised corporate qualification rules. The framework formally recognizes permanent establishments holding more than 10 percent equity and direct shareholdings verified through Ultimate Beneficial Owner (UBO) structures. Companies operating under indirect UBO tiers must actively file disclosures with the Ministry of Finance, as authorities will not independently trace multi-layered shareholding arrangements.

Technical guidelines governing these corporate criteria are currently being finalized to align with an upcoming revision to Minister of Finance Regulation (PMK) No. 48 of 2026.

Expanding Bank Custodians and Central Bank Liquidity Tools

To accommodate the influx of export revenue, the government broadened authorized receiving banks from an initial state-bank oligopoly to a pool of 16 lenders, inducting 11 non-state and multinational institutions.

"It has been agreed that there are now 16 banks, five state-owned banks and 11 non-state banks, including the approved application from Bank OCBC NISP," Airlangga noted.

Alongside the five state-owned banks, the 11 designated private lenders comprise Standard Chartered Bank, Deutsche Bank AG, MUFG Bank Ltd, PT Bank SMBC Indonesia Tbk, PT Bank HSBC Indonesia, Bank of China, PT Bank ICBC Indonesia, PT Bank China Construction Bank Indonesia Tbk, JP Morgan Chase Bank N.A., Citibank N.A., and PT Bank OCBC NISP Tbk.

Bank Indonesia Senior Deputy Governor Aida S. Budiman noted that the central bank provides a suite of dedicated placement instruments to support corporate yields and liquidity management.

These vehicles include commercial foreign currency bank deposits, Bank Indonesia Foreign Exchange Term Deposits for DHE, Bank Indonesia Foreign Currency Securities (SVBI), as well as foreign-currency denominated sovereign conventional bonds (SUN) and sovereign Islamic bonds (SBSN).

"The placement instruments are designed to ensure that exporters can still obtain the liquidity they require, even as they comply with the mandatory onshore retention rules," Aida said, pointing out that retained funds can serve as underlying assets for foreign exchange hedging swap transactions directly with the central bank.

Regulatory Incentives and Prudential Oversight

The financial sector watchdog, the Financial Services Authority (OJK), pledged full regulatory alignment to ensure that export receipts strengthen national monetary resilience without constraining bank liquidity or credit pipelines.

OJK Chief Executive of Banking Supervision Dian Ediana Rae highlighted that the agency had issued formal operational directives to the banking industry to smooth the rollout of PP No. 21 of 2026 while upholding strict prudential standards.

"OJK welcomes the planned amendments to the natural resource export proceeds government regulation, which are expected to provide relief and broaden implementation across banks in Indonesia so that more export proceeds are placed and managed within the national financial system," Dian said during a virtual briefing on Friday.

Under OJK guidance, banks may classify DHE SDA balances as cash collateral, allowing credit facilities backed by these funds to be categorized as performing assets and granted exemptions from legal lending limits (BMPK), provided they satisfy regulatory asset-quality thresholds.

To guard against misuse, Dian cautioned that lenders must rigorously audit supporting commercial documentation pursuant to Article 11A of the regulation. Exporters must submit verified payment paper trails alongside formal liability statements affirming the accuracy of fund allocations and accepting statutory sanctions in the event of non-compliance.

"These documents serve as the foundation for banks to discharge their supervisory functions while ensuring complete exporter accountability over how these funds are utilized," Dian said.