Antara News·Indonesia·Friday, November 6, 2026 at 10:56 AM UTC

Indonesia adds South Korea, Japan, EU to DHE SDA exemption list

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Imamatul Silfia, Resinta Sulistiyandari

Jakarta (ANTARA) - The Indonesian government has added three countries to the list of jurisdictions whose investors are eligible for exemptions from Foreign Exchange Proceeds from Natural Resource Exports (DHE SDA) placement requirements under Article 18A of Government Regulation No. 21 of 2026.

The three additions are South Korea, Japan, and the European Union.

The expansion was agreed upon at a limited coordination meeting on November 3, 2026. The previous list covered the United States, Canada, China, Hong Kong, and Australia.

“This expands the previous list of five countries and jurisdictions—the United States, Canada, China, including Hong Kong, and Australia—to include three more: South Korea, Japan, and the European Union,” Coordinating Minister for Economic Affairs Airlangga Hartarto said on Friday.

Under Article 18A, eligible mining exporters receive special treatment, requiring them to place at least 30 percent of their DHE SDA proceeds in designated accounts for a minimum of three months.

These provisions are more flexible than the general requirements for non-oil and gas exporters, who must place 100 percent of their DHE SDA proceeds in the Indonesian financial system for at least 12 months.

The government has established three cumulative requirements for exporters seeking to use this facility:

The exporter must be a limited liability company (PT) operating in the mining sector.
At least one of its shareholders must come from a country or jurisdiction designated by the government.
The shareholder from that country or jurisdiction must hold at least 10 percent of the company's shares.

The selection of these countries and jurisdictions takes into account their significant investments in Indonesia's mining sector, as well as their bilateral agreements or trade arrangements with Indonesia.

Hartarto also said the government had agreed to expand the criteria for exporters eligible to use the special facility.

The expansion includes recognizing permanent establishments (PEs) with direct share ownership of more than 10 percent, as well as indirect ownership structures through ultimate beneficial owners (UBOs). For indirect ownership arrangements, companies are required to disclose their ownership structures to the government.

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