Bank Indonesia Regulation Number 5 of 2026 Requires Placement of Export Proceeds in State-Owned Banks

Introduction

On 29 May 2026, Bank Indonesia issued Bank Indonesia Regulation Number 5 of 2026 on the Second Amendment to Bank Indonesia Regulation Number 7 of 2023 on Export Proceeds and Import Payment Foreign Exchange (“PBI 5/2026”), which took effect on 1 June 2026. This regulation aims to restructure the governance and ecosystem of the receipt, placement, and utilization of Export Proceeds Foreign Exchange (“DHE”), particularly those derived from activities involving the exploitation, management, and/or processing of natural resources (“SDA”).

PBI 5/2026 was enacted to enhance the benefits of foreign exchange in supporting the sustainability of national development, economic resilience, and sustainable economic growth. Bank Indonesia introduced these regulatory adjustments in response to and in alignment with Government Regulation Number 21 of 2026 on the Third Amendment to Government Regulation Number 36 of 2023 on Export Proceeds Foreign Exchange from Activities Involving the Exploitation, Management, and/or Processing of Natural Resources. Through this regulation, Bank Indonesia seeks to strengthen the availability of foreign currency liquidity within the domestic economy by centralizing foreign exchange flows through state-owned banks and expanding the range of secure foreign exchange management instruments available to businesses.

 

Comparison

PBI 5/2026 amends and revokes several provisions previously regulated under Bank Indonesia Regulation Number 7 of 2023 on Export Proceeds and Import Payment Foreign Exchange (“PBI 7/2023”), as most recently amended by Bank Indonesia Regulation Number 3 of 2025 (“PBI 3/2025”).

 

Key Provisions

Export Receipt Obligation Through State-Owned Banks

Pursuant to Article 18 paragraph (1) and Article 2 paragraph (2) of PBI 5/2026, Bank Indonesia now requires Natural Resource Exporters (with export values of at least a specified minimum threshold) to deposit all of their DHE SDA into a DHE SDA Special Account at a State-Owned Bank. Furthermore, where an Exporter receives such DHE SDA directly in cash within Indonesia, Article 18 paragraph (2) instructs the Exporter to immediately deposit the funds into the relevant DHE SDA Special Account at the State-Owned Bank. Bank Indonesia requires Exporters to comply with the foreign exchange deposit or receipt deadline no later than the end of the third month following the month in which the Export Customs Notification (PPE) document is issued.

Additional Placement Instrument Options

Article 20 paragraphs (1) and (3) provide that Natural Resource Exporters must place DHE SDA held at State-Owned Banks into eligible placement instruments. Bank Indonesia has expanded the range of investment placement options available to businesses by specifying the following instruments:

1. A dedicated foreign currency DHE SDA Special Account at a State-Owned Bank.
2. Banking instruments in the form of foreign currency deposits at State-Owned Banks.
3. Financial instruments issued by Bank Indonesia, including foreign currency term deposits, BI foreign currency securities, and BI foreign currency sukuk.
4. Government Bonds (SUN) and/or State Sharia Securities (SBSN) denominated in foreign currency.
5. Other financial instruments that may be designated by Bank Indonesia in the future.

Maximum Limitation on the Conversion of DHE SDA into Rupiah

Article 22A paragraphs (1) and (2) require Natural Resource Exporters (particularly commodity businesses outside the oil and gas sector) to control the amount of foreign exchange converted into Indonesian Rupiah. Natural Resource Exporters must ensure that the amount of DHE SDA converted through either spot or forward transactions complies with the prescribed maximum percentage limit. To determine this limit, Article 22A paragraph (3) provides that the calculation shall be based on the cumulative nominal amount of DHE SDA deposited by the exporter into the Special Account during the same month. Bank Indonesia will impose sanctions on any Natural Resource Exporter that violates this maximum conversion percentage requirement.

Designation of Special Banks for Bilateral Trade Agreements

Article 47A paragraph (1) provides special flexibility for certain cross-border trade activities, whereby Bank Indonesia may designate any foreign exchange commercial bank, without limitation to State-Owned Banks, to accommodate export proceeds directly linked to bilateral trade agreements or other international trade arrangements. Article 47A paragraph (2) ensures that Bank Indonesia conducts a selection process and designates these special partner banks based on qualification criteria established by Bank Indonesia.

Removal of LPEI’s Role within the DHE SDA Ecosystem

PBI 5/2026 revokes the entirety of Chapter V, covering Articles 50 through 56, and also revokes Articles 24 and 24A. The revocation of these provisions signifies the withdrawal of the authority of the Indonesia Eximbank (“LPEI”) within the DHE SDA management ecosystem. Previously, LPEI was authorized to receive DHE SDA, facilitate the conversion of foreign currency into Rupiah, and issue DHE-related financial instruments. By revoking these provisions, Bank Indonesia affirms that all functions relating to the receipt, placement, and utilization of DHE SDA may now only be carried out through State-Owned Banks, meaning that businesses may no longer use LPEI accounts to fulfill their foreign exchange obligations.

Strengthened Controls on Incoming Fund Transfer Mechanisms

Article 23 paragraph (1) and Article 43 strengthen the rules governing incoming fund flows into Special Accounts. Bank Indonesia instructs State-Owned Banks to ensure that Incoming Fund Transfers into DHE SDA Special Accounts originate only from authorized sources, including DHE SDA belonging to the same exporter, proceeds from the liquidation of previously placed instruments, funds transferred from another DHE SDA Special Account owned by the same exporter, or deposits made to cover placement shortfalls and excess Rupiah conversions. Where a State-Owned Bank identifies incoming funds originating from sources outside these permitted categories, Article 23 paragraph (4) requires the Natural Resource Exporter to promptly transfer such funds out of the DHE SDA Special Account at the State-Owned Bank.

 

Transitional Provisions

Pursuant to Article II point 1, State-Owned Banks and Bank Indonesia shall continue to maintain DHE SDA placement instruments (such as foreign currency term deposits, securities, or foreign currency sukuk) derived from Export Customs Notifications (PPE) issued before 1 June 2026 until such instruments mature or otherwise expire in accordance with their applicable terms.

 

Closing

PBI 5/2026 reforms the governance of DHE SDA to strengthen domestic foreign currency liquidity by requiring exporters to place their foreign exchange proceeds in Special Accounts at State-Owned Banks, while simultaneously removing LPEI’s authority within this ecosystem. The regulation also optimizes foreign exchange management by expanding placement instruments through the introduction of foreign currency-denominated SUN and SBSN, strengthening the validity requirements for incoming fund flows into special accounts, and imposing maximum percentage limits on the conversion of DHE into Rupiah. Through this centralization and regulatory adjustment, the Government seeks to ensure that foreign exchange flows are managed more securely and provide optimal benefits for economic resilience and sustainable national economic development.