100% DHE SDA Placement Obligation – Amendment of Government Regulations

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Indonesia has strategically recalibrated its export revenue regulations with the introduction of Government Regulation No. 8/2025*, which took effect on 1 March 2025 and amends Government Regulation No. 36/2023**. This new regulation brings significant changes to the placement of foreign exchange export proceeds derived from the business, management, and/or processing of natural resources (Sumber Daya Alam or SDA) (“DHE SDA”). For corporate leaders, these changes will have a major impact on cash flow management and strategic financial planning.

Under the previous regulation, exporters in the SDA sector were required to deposit 30% of their DHE SDA into a designated account at a domestic foreign exchange bank and/or the Indonesian Export Financing Institution (Lembaga Pembiayaan Ekspor Indonesia or LPEI) for a 3 months retention period, provided that the export value met or exceeded USD250,000 (or its equivalent). Exporters below this threshold had the option to voluntarily deposit their DHE SDA.

With the introduction of Government Regulation No. 8/2025, the key changes are as follows:

1. 100% Mandatory Placement: Exporters in the mining (except oil and gas), plantation, forestry, and fisheries sectors must now deposit 100% of their DHE SDA into the national financial system for 12 months. Meanwhile, oil and gas exporters remain subject to Government Regulation No. 36/2023, which mandates a 30% deposit for three months;

2. Removal of the Voluntary Deposit Option: Exporters whose DHE SDA proceeds fall below the USD250,000 threshold are no longer allowed to voluntarily deposit their earnings.

While the new regulation extends the retention period, it also provides greater flexibility for non-oil and gas exporters by allowing them to use their DHE SDA for specific financial transactions, including:

1. exchanging foreign currency for Rupiah through a designated foreign exchange bank, in accordance with Bank Indonesia’s regulations;

2. paying taxes, non-tax state revenues, and other government obligations in foreign currency as required by law;

3. disbursing dividends in foreign currency;

4. settling payments for goods and services in foreign currency when purchasing raw materials, auxiliary materials, or capital goods that are unavailable, partially available, or do not meet domestic specifications; and/or

5. repaying loans taken for capital expenditures in foreign currency.

These provisions offer greater flexibility in managing DHE SDA, enabling businesses to address essential operational needs while adhering to retention requirements.

Exporters must ensure strict compliance with these regulations, as non-compliance may result in administrative sanctions, including the potential suspension of export services.

*Regulation of the Government of the Republic of Indonesia Number 8 of 2025 on the Amendment to Regulation of the Government Number 36 of 2023 on Foreign-Exchange Export Proceeds from Business, Management, and/or Processing Activities of Natural Resources (“Government Regulation No. 8/2025”).

**Regulation of the Government Number 36 of 2023 on Foreign-Exchange Export Proceeds from Business, Management, and/or Processing Activities of Natural Resources (“Government Regulation No. 36/2023”).