On 6 May 2026, the President of the Republic of Indonesia enacted Government Regulation No. 21 of 2026 on the Third Amendment to Government Regulation No. 36 of 2023 on Foreign Exchange from Export Proceeds from Natural Resources Business Management and/or Processing Activities (“GR 21/2026“), which came into force on 1 June 2026. GR 21/2026 is the third amendment to Government Regulation No. 36 of 2023 (“GR 36/2023“), following the first and second amendments made respectively by Government Regulation No. 8 of 2025 (“GR 8/2025“) and Government Regulation No. 2 of 2026 (“GR 2/2026“). Together, these regulations govern the obligation of exporters to bring foreign exchange proceeds from natural resources exports (Devisa Hasil Ekspor dari Kegiatan Pengusahaan, Pengelolaan, dan/atau Pengolahan Sumber Daya Alam or “DHE SDA“) into Indonesia’s financial system.
Background
Article 5 (2) and 7 (1) of GR 36/2023 originally required exporters generating DHE SDA from the mining, plantation, forestry, and fisheries sectors to place such proceeds into a special DHE SDA account, with at least 30% required to remain in Indonesia’s financial system for a minimum of three months.
This framework was substantially tightened by Article 7 (1), 7 (2), and 7 (2a) of GR 8/2025 (the first amendment), which raised the mandatory retention amount to 100% of DHE SDA for a minimum period of 12 months, subject to a carve-out for the oil and gas mining sub-sector, which retained the original requirement of 30% of DHE SDA proceeds to be retained for 3 months. However, GR 2/2026 (the second amendment) subsequently restricted placement of DHE SDA exclusively to state-owned foreign exchange banks (removing the Indonesia Eximbank as a placement option), introduced new permitted uses of DHE SDA (including purchase of foreign-currency government bonds/sukuk), and capped conversion of DHE SDA into Rupiah at 50% of export value (Article 6 and 8 of GR 2/2026). The second amendment also introduced Article 18A, which created a carve-out from the general placement regime for DHE SDA covered by bilateral trade agreements.
GR 21/2026 (the third amendment) amends only one article of this framework, revising Article 18A.
Key Changes Introduced by GR 21/2026
- Expanded Scope of Article 18A Exception
Prior to GR 21/2026, the Article 18A exception applied only in connection with the implementation of bilateral agreements on reciprocal trade (perjanjian bilateral mengenai perdagangan resiprokal). In this third amendment, GR 21/2026 broadens this scope to cover the implementation of any bilateral agreement, understanding, or other arrangement relating to trade (perjanjian bilateral mengenai perdagangan atau kesepahaman atau kesepakatan lainnya mengenai perdagangan), removing the “reciprocal trade” qualifier and extending the exception to a wider range of bilateral trade arrangements with Indonesia’s trading partners. For instance, an MoU between Indonesia and a trading partner providing special trade treatment could now fall within the exception even if it is not a reciprocal trade agreement.
- Substance of the Exception Retained
The substantive relief available under Article 18A is unchanged. For DHE SDA falling within the (now broadened) scope of the exception:
- the mandatory minimum retention is 30% of DHE SDA originating from the mining sector, for a minimum placement period of 3 (three) months from placement into the special DHE SDA account (rather than the general 100%/12 months);
- DHE SDA originating from the mining sector may be placed in a special DHE SDA account at any bank providing foreign currency business activities, rather than being restricted to state-owned banks; and
- conversion of such mining-sector DHE SDA into Rupiah may likewise be carried out at any bank providing foreign currency business activities.
- New Authority for Bank Indonesia to Designate Eligible Banks
GR 21/2026 adds a new paragraph (2) to Article 18A, providing that the banks providing foreign currency eligible to receive placements and conversions under the Article 18A exception are to be determined by Bank Indonesia. This introduces a designation mechanism that did not exist under the Article 18A framework as previously amended by GR 2/2026, giving Bank Indonesia direct control over which banks may participate in this exception.
- Transitional Provisions
GR 21/2026 applies to Customs Export Declarations (Pemberitahuan Pabean Ekspor or “PPE“) issued on or after 1 June 2026. Accordingly, where an exporter’s PPE is issued on or after 1 June 2026, the new requirements under GR 21/2026 apply in full to the receipt, placement and use of the relevant DHE SDA. For example, if PT A’s PPE is issued on 2 June 2026 and the corresponding DHE SDA is received in its DHE SDA Special Account on 5 June 2026, all requirements under GR 21/2026 will apply, including any flexibility to place the DHE SDA with a non-state-owned bank where permitted under a bilateral trade agreement or other bilateral trade arrangement meeting the criteria under Article 18A.
On the other hand, for PPEs issued before 1 June 2026 that remain under supervision by Bank Indonesia and/or the Financial Services Authority (Otoritas Jasa Keuangan) as to compliance with obligations before the third amendment, the relevant exporter is deemed to have fully satisfied its obligations. For example, PT B’s PPE issued on 20 May 2026 will be deemed to have satisfied all relevant obligations even if no DHE SDA had been received in its DHE SDA Special Account when GR 21/2026 came into effect. Similarly, if PT C’s PPE was issued on 10 March 2026 and part of the corresponding DHE SDA was only received in July 2026, PT C will nevertheless be deemed to have fully satisfied its obligations because the PPE was issued before 1 June 2026, even if the supervision process was still ongoing when GR 21/2026 came into effect.
Other regulations relating to DHE SDA already in effect remain valid to the extent they do not conflict with, and have not been superseded by, GR 21/2026.
Rationale
The elucidation to GR 21/2026 explains that, following enactment of GR 2/2026, global trade and geopolitical conditions changed significantly, and natural resources exports are viewed as a comparative advantage that Indonesia should optimize to mitigate external risk and increase value added to the national economy. Against that backdrop, the openness previously afforded only to reciprocal trade agreements is extended to trading partners with any bilateral trade agreement, understanding, or arrangement, reflecting a fairness principle of equal treatment across trading partners while continuing to support external resilience, transparency, and deepening of the domestic financial market.
Concluding Remarks
GR 21/2026 is a narrow but strategically significant amendment. Rather than altering the core DHE SDA retention regime introduced by GR 8/2025 and refined by GR 2/2026 — 100% retention for 12 months, with only limited carve-outs for the oil and gas mining sub-sector and, under Article 18A, for mining-sector DHE SDA covered by qualifying bilateral trade arrangements, along with the general restriction of placement to state-owned foreign exchange banks — GR 21/2026 expands the range of exporters that may qualify for the more flexible Article 18A carve-out by extending it to any bilateral trade arrangement, not only reciprocal trade agreements. At the same time, by empowering Bank Indonesia to designate which foreign-currency banks may participate in this carve-out, the government retains a supervisory checkpoint over the practical scope of the exception.
Exporters in the mining sector, particularly those whose export markets are governed by bilateral trade arrangements with Indonesia, should review whether their existing bilateral arrangements fall within the broadened scope of Article 18A, monitor forthcoming Bank Indonesia regulations designating eligible banks, and reassess their DHE SDA placement, retention, and conversion strategies in light of these changes.
Disclaimer: The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their circumstances.
