Government Regulation Number 21 of 2026 Introduces New Flexibility for Retention of Natural Resource Export Proceeds in the Mining Sector Through Bilateral Agreements

Introduction

On 6 May 2026, President Prabowo Subianto enacted Government Regulation Number 21 of 2026 on the Third Amendment to Government Regulation Number 36 of 2023 on Export Proceeds from the Exploitation, Management, and/or Processing of Natural Resources (“GR 21/2026”), which took effect on 1 June 2026. This regulation aims to restructure the ecosystem for the receipt, placement, and utilization of foreign exchange in a more targeted manner to support external resilience, enhance transparency, and deepen the domestic financial market through flexible mechanisms.

GR 21/2026 responds to global risk dynamics that position natural resource export activities as one of Indonesia’s comparative advantages. The Government seeks to optimize this advantage to mitigate various risks that may affect international trade performance. In addition, the Government intends to expand the scope of exemptions to partner countries that have bilateral trade agreements or similar arrangements. This regulation also creates greater added value for national interests while reflecting the principle of equal treatment for all trading partners.

 

Comparison

GR 21/2026 amends Article 18A on exemptions from the placement requirements for Natural Resource Export Proceeds (“DHE SDA”) in the mining sector, the implementation of which refers to trade agreements. The following table compares GR 21/2026 and Government Regulation Number 8 of 2025 on Amendments to Government Regulation Number 36 of 2023 on Export Proceeds from the Exploitation, Management, and/or Processing of Natural Resources (“GR 8/2025”):

 

Key Provisions

Exemption from Retention Percentage and Placement Period Requirements

Pursuant to Article 18A paragraph (1) letter a, the Government provides an exemption from the foreign exchange placement obligation specifically for the implementation of bilateral trade agreements or other similar arrangements. Exporters are required to place at least 30% (thirty percent) of DHE SDA derived from the mining sector. Exporters must retain such foreign exchange for a minimum period of 3 (three) months from the date of placement in the Special DHE SDA Account.

Flexibility in the Placement of DHE SDA

Pursuant to Article 18A paragraph (1) letter b, the Government expands access to foreign exchange placement for businesses. Exporters may place DHE SDA from the mining sector in a Special DHE SDA Account maintained at a Foreign Exchange Commercial Bank. Bank Indonesia is responsible for determining the list of eligible Foreign Exchange Commercial Banks, as expressly stipulated in Article 18A paragraph (2).

Conversion Mechanism into Indonesian Rupiah

Pursuant to Article 18A paragraph (1) letter c, exporters may convert DHE SDA into Indonesian Rupiah. Such conversion transactions must be conducted through a Foreign Exchange Commercial Bank.

 

Transitional Provisions

Pursuant to Article II point 1, the new provisions under GR 21/2026 apply to Export Customs Declarations (“PPE”) issued on or after 1 June 2026. Meanwhile, for exporters whose PPE was issued before 1 June 2026 and who are currently subject to supervision by Bank Indonesia and/or the Financial Services Authority, the Government deems such exporters to have fulfilled all of their obligations.

 

Closing

GR 21/2026 provides regulatory relaxation for exporters in the mining sector operating under bilateral agreements in order to optimize the potential of natural resource exports and strengthen the domestic financial market. The regulation reduces the DHE SDA retention requirement to a minimum of 30% for a minimum period of 3 months, allows greater flexibility in the placement of funds through Special Accounts at Foreign Exchange Commercial Banks, and permits the conversion of foreign exchange into Indonesian Rupiah. Together with the transitional provisions that deem all obligations fulfilled for PPE issued before 1 June 2026, this policy is expected to mitigate global risk dynamics while generating greater added value for the national economy.