Indonesia's Coordinating Ministry for Economic Affairs recently held a hybrid policy briefing session to explain the implementing regulations of Article 18A of Government Regulation No. 21 of 2026, which is the third amendment to regulations on foreign exchange from natural resource export earnings (DHE SDA). Representatives from mining companies, banks, industry associations, and foreign chambers of commerce attended the event. The Secretary of the Coordinating Ministry for Economic Affairs chaired the meeting, with the Coordinating Ministry for Economic Affairs, the Ministry of Finance, and Bank Indonesia as the main speakers announcing four core implementation decisions: designated applicable countries, exporter qualification criteria, list of foreign exchange deposit banks, and exporter data reporting mechanisms.
The natural resource export foreign exchange policy originates from Article 33 of Indonesia's 1945 Constitution, with three objectives: maintaining macroeconomic stability and deepening domestic financial markets; providing construction funds for downstream industry upgrades; and improving investment and export performance in the natural resource sector. The original general rules required 100% of natural resource export foreign exchange to be repatriated into Indonesia's financial system, with the oil and gas industry retaining at least 30% for 3 months, and the non-oil and gas industry retaining 100% for 12 months, all using state-owned foreign exchange banks.
Non-oil and gas foreign exchange funds can be used for exchanging into Indonesian rupiah (up to 50%), paying taxes, paying foreign currency dividends, purchasing materials and equipment, repaying loans, and working capital. The newly added Article 18A is a special facility under the framework of bilateral trade agreements, specifically targeting the mining sector. Qualified enterprises only need to deposit at least 30% of their foreign exchange for no less than 3 months, and are allowed to conduct rupiah exchange at designated foreign exchange banks.
Through ministerial-level coordination meetings, Indonesia has designated five applicable countries and regions: the United States, Mainland China, Hong Kong China, Australia, and Canada, all of which are major sources of investment in Indonesia's mining sector. Exporters eligible for this policy must simultaneously meet three conditions: be a limited liability company; have shareholders from the aforementioned designated countries or regions; and foreign shareholders must hold at least 10% of shares.
Customs data from March 2025 to July 2026 for mining declarations covered 537 tariff code entities. After comparison, only 64 companies (about 12%) met the criteria. The list of qualified companies is updated monthly. The list of companies corresponding to September 2026 declarations will be published on Bank Indonesia's official website no later than the second week of October.
Officials have also finalized 15 foreign exchange banks eligible to handle this business, including 5 state-owned banks and 10 foreign banks. Bank of China, ICBC Indonesia, and CCB Indonesia are all on the list.
It is important to note that Article 18A is an optional preferential policy. Qualified enterprises that do not wish to use this policy must submit a written "opt-out declaration" to Bank Indonesia within 5 working days of the announcement. Failure to submit within the deadline will be considered automatic activation of this facility. The entire policy cannot be partially selected and can only be chosen once.
The new regulation takes effect for export declarations starting September 1, 2026. Enterprises that do not opt for Article 18A continue to follow the original strict rules: non-oil and gas mining companies must deposit 100% in state-owned foreign exchange banks for a full 12 months.
If disputes arise during implementation, enterprises may submit written appeals to the Coordinating Ministry for Economic Affairs, the Ministry of Finance, or Bank Indonesia. The government has also provided multiple consultation channels including email and telephone, hoping that the natural resource export foreign exchange system can contribute to national macroeconomic stability and industrial development.
