Indonesia has expanded its special foreign-exchange retention arrangements for qualifying mining exporters to include investors from the European Union, Japan and South Korea, while increasing the number of designated banks to 16.
The Indonesian government has expanded the list of eligible jurisdictions under its relaxed foreign-exchange retention rules for natural-resource export proceeds, known as Devisa Hasil Ekspor Sumber Daya Alam (DHE SDA), to include the European Union, Japan and South Korea.
The decision was reached during a coordination meeting on 3 November 2026 and announced by Coordinating Minister for Economic Affairs Airlangga Hartarto on 6 November. The three additions join the United States, Canada, China, Hong Kong and Australia, which were previously covered by the special provisions under Article 18A of Government Regulation (PP) No. 21/2026.
Under the arrangement, qualifying mining exporters are required to retain at least 30% of their export proceeds in Indonesia for a minimum of three months, compared with the general requirement for non-oil-and-gas natural-resource exporters to retain 100% for at least 12 months.
The special provisions apply to eligible companies operating in Indonesia's mining sector with qualifying foreign ownership from designated partner jurisdictions. Under the existing eligibility criteria, companies must be incorporated as Indonesian limited liability companies (PT), with at least 10% ownership held by an investor from a designated jurisdiction.
The government has also agreed to expand the eligibility criteria to recognise permanent establishments (Bentuk Usaha Tetap, BUT) and indirect shareholding through ultimate beneficial ownership (UBO). These changes remain subject to further technical review and amendments to Minister of Finance Regulation No. 48/2026.
In addition, the government increased the number of designated foreign-exchange banks available for DHE SDA placement from 15 to 16 institutions, comprising five state-owned banks and 11 non-state-owned banks. The expansion includes PT Bank OCBC NISP Tbk.
The special arrangement remains optional for eligible exporters. Companies choosing not to use the facility remain subject to the general DHE SDA requirements.
The government is also preparing further adjustments to the rules governing the conversion of export proceeds into rupiah, including a possible relaxation of the existing 50% conversion limit. These proposed changes have not yet been implemented.