Antara News·Indonesia·Friday, November 6, 2026 at 12:25 PM UTC

Govt prepares 100 pct rupiah conversion for resource export earnings

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Imamatul Silfia, Yashinta Difa

Jakarta (ANTARA) - The government is preparing a regulatory overhaul to allow up to 100 percent conversion of foreign currency earnings from natural resource exports (DHE SDA) into Indonesian rupiah, an increase from the current 50 percent cap.

Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the adjustment will be formalized in the upcoming fourth revision of Government Regulation (PP) Number 36 of 2023 concerning Foreign Currency Earnings from the Exploitation, Management and/or Processing of Natural Resources.

"Also being prepared in the fourth revision of Government Regulation 36 is a relaxation regarding the conversion of foreign currency into rupiah. This relaxation will allow for conversion of up to 100 percent, rather than just 50 percent," Airlangga said here on Friday.

The planned policy shift follows a comprehensive government evaluation of current DHE SDA regulations.

Airlangga noted that the adjustment accounts for robust domestic demand for rupiah, particularly to support corporate operational expenditures.

Deputy Minister of Finance Nurkholisoh Ibnu Aman added that while foreign exchange inflows and retention remained stable, data revealed a notable contraction in voluntary currency conversion.

"Conversion into rupiah has dropped quite significantly—by 37.4 percent—while the retention of foreign currency has increased," Nurkholisoh said, emphasizing the necessity of policy interventions to maintain business liquidity.

Under Government Regulation Number 21 of 2026—active since June 1, 2026—non-oil and gas exporters are mandated to place 100 percent of their export earnings into the domestic financial system for a minimum of 12 months, while oil and gas exporters must retain at least 30 percent for a minimum of three months.

Previously, conversions from foreign currency to rupiah were legally capped at 50 percent.

The government indicated that the revised framework enabling 100 percent conversion will take effect immediately upon the finalization of the implementing Minister of Finance Regulation, which Airlangga targeted for completion by the end of the month.

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