JAKARTA. The Indonesian government is introducing new tax incentives to encourage exporters to retain Natural Resource Export Proceeds (DHE SDA) in the domestic financial system. Effective June 1, 2026, interest income earned from DHE SDA placements in Indonesia will be exempt from Income Tax.
The incentive is part of the government's revised DHE SDA policy under Government Regulation (GR) No. 21 of 2026, which amends GR No. 36 of 2023.
Under the new regulation, the government has not only tightened the export proceeds retention requirement but also introduced tax incentives to encourage exporters to keep their foreign exchange earnings in Indonesia.
Income Tax Exemption
The government believes that requiring exporters to retain foreign exchange earnings for a longer period should be accompanied by incentives that provide tangible benefits to businesses.
Accordingly, the government will offer an Income Tax rate of up to 0% on income generated from approved DHE SDA placement instruments. Specifically, the exemption applies to interest income earned on U.S. dollar funds placed in Indonesia.
"Interest income earned from U.S. dollar deposits will be exempt from Income Tax," said Coordinating Minister for Economic Affairs Airlangga Hartarto during the National Conference on Regional Economic Development on Monday (May 25), as quoted by Kontan.co.id.
The government expects the incentive to encourage exporters to retain more of their export proceeds in the domestic financial system.
New DHE SDA Retention Rules
At the same time, the government has strengthened the rules governing DHE SDA placements.
Starting in June 2026, natural resource exporters must repatriate 100% of their export proceeds into Indonesia's financial system and place the funds in a special domestic bank account.
Airlangga said the policy is intended to maximize the economic benefits of natural resource exports for the national economy.
"The key provision is that natural resource exporters are required to repatriate 100% of their export proceeds into Indonesia's financial system," he said.
The government expects the policy to strengthen foreign exchange management while supporting national development financing. By combining tax incentives with stricter DHE SDA retention requirements, it also aims to increase foreign exchange reserves, strengthen investment financing, and maintain the stability of Indonesia's domestic financial markets. (KEN)
