Enviro News Asia, Jakarta – President Prabowo Subianto has announced a mandatory domestic retention policy for Foreign Exchange Export Proceeds from Natural Resources (DHE SDA), as stated during a press conference at the Merdeka Palace, Jakarta, on Monday (February 17, 2025). This policy is outlined in Government Regulation (PP) No. 8 of 2025.
Under PP No. 8 of 2025, the government mandates that exporters in the mining sector (excluding oil and gas), plantations, forestry, and fisheries must deposit 100 percent of their DHE SDA within the national financial system for 12 months in a designated special account at a national bank.
The President stated that Indonesia’s natural resources must be optimized for the prosperity of the nation and its people, whether through development financing, domestic monetary circulation, increased foreign exchange reserves, or exchange rate stability. Until now, a significant portion of Indonesia’s DHE, especially from natural resources, has been stored abroad in foreign banks.
To strengthen and maximize the impact of managing Foreign Exchange Export Proceeds from natural resources, the President continued, the government has issued Government Regulation No. 8 of 2025. Some key points of this regulation include: The government mandates that the obligation to deposit DHE SDA within Indonesia’s financial system will be increased to 100 percent for a period of 12 months from the time of placement, in a designated special DHE SDA account at national banks.
This regulation applies to the mining sector (excluding oil and gas), plantations, forestry, and fisheries. The oil and gas sector is exempt and will continue to adhere to the provisions of PP No. 36 of 2023.
“With this measure, in 2025, our Foreign Exchange Export Proceeds are expected to increase by approximately 80 billion US dollars, as this policy will take effect starting March 1. If fully implemented for 12 months, the proceeds are estimated to exceed 100 billion US dollars,” said President Prabowo Subianto.
Additionally, the government provides flexibility for exporters to ensure business continuity by allowing them to use the DHE SDA deposited in special accounts for certain purposes, including: Exchanging it for rupiah at the same bank for operational activities and business continuity; Paying taxes, non-tax state revenues, and other government obligations in foreign currency, in accordance with regulations; Dividend payments in foreign currency; Procurement of goods and services, including raw materials, auxiliary materials, or capital goods not yet available domestically; Loan repayments for capital goods procurement in foreign currency.
“Administrative sanctions will also be imposed, including the suspension of export services for those who fail to comply with this regulation,” emphasized President Prabowo Subianto.
The President further explained that the obligation to place DHE SDA for commodities in the mining, oil, and gas sectors remains governed by PP No. 36 of 2023. This regulation is set to take effect on March 1, 2025
