News & Announcements

W&P Newsletter – Changes on Mandatory Placement of Forex Export Proceeds from Natural Resources: What to Look Out For

March 27, 2025 News

To enhance Indonesia’s foreign exchange reserves, effective as of 1 March 2025, the Government of Indonesia enacted Government Regulation No. 8 of 2025 (“GR 8/2025”), amending the existing Government Regulation No. 36 of 2023 on the Foreign Exchange Export Proceeds from the Business, Management and/or Processing of Natural Resources (“GR 36/2023”).

Under GR 36/2023 and GR 8/2025, exporters of certain natural resources products, such as  mining, plantation, forestry and fisheries with export value of at least USD 250,000  are required to deposit a certain amount of its foreign exchange export proceeds from certain natural resource exported goods (Devisa Hasil Ekspor dari Barang Ekspor Sumber Daya Alam – “DHE SDA”) into a designated accounts with the Indonesian Export Financing Agency (Lembaga Pembiayaan Ekspor Indonesia – “Eximbank”) or other Indonesian banks with foreign exchange activities. However, one of the most significant changes introduced by the GR 8/2025 pertains to the retention period and minimum retention amount of DHE SDA in which GR 8/2025 imposes stricter obligations compared to GR 36/2023. One notable improvement by GR 8/2025, nonetheless, is the increase flexibility regarding the utilization of the deposited DHE SDA during the retention period. Under certain circumstances, exporters are now allowed to use the retained DHE SDA to support their operational and financial needs, providing them with more flexibility compared to the previous regulation.

The highlights between GR 36/2023 and GR 8/2025 are as follows:

No. Subject GR 36/2023 GR 8/2025
1. Minimum Retention Percentage and Period of DHE SDA At least 30% of DHE SDA from certain mining, plantation, forestry and fisheries products must be deposited for at least 3 months.
  • For oil and gas, at least 30% of DHE SDA must be deposited within at least 3 months.
  • For other mining sector (except oil and gas), and certain plantations, forestry and fisheries products, 100% of DHE SDA must be deposited within at least 12 months.
2. Right to Use of DHE SDA During the Retention Period Strictly prohibited. During the retention period, deposited DHE SDA may be used for:

  1. currency exchange to Rupiah;
  2. payment of tax, non-tax state revenue, and other retribution to the government in foreign currency;
  3. payment of dividends in foreign currency;
  4. payment for procurement of certain capital goods and services in foreign currency; and/or
  5. repayment of loans for capital goods procurement in foreign currency.

To use DHE SDA, exporters must submit to the relevant Eximbank or banks:

  1. For #(b)-(e): proof of DHE SDA usage, and
  2. For #(d)-(e): exporter’s statement letter.

The amount of deposited DHE SDA used for #(a)-(e) above will be calculated as a deduction from the mandatory deposit, without the requirement to replenish the mandatory DHE SDA deposit amount.
3. Inspection Ministry of Finance to Eximbank and relevant banks None

 

 Ministry of Finance to inspect the fulfillment of DHE SDA deposit to Eximbank and other relevant banks.