New Rules for Exports of Natural Resources from Indonesia: Implications for Producers, Traders and Financiers

In response to domestic budgetary pressures and as part of a global trend towards resource nationalism, the Government of Indonesia (GOI) has introduced new regulations and policy measures aimed at increasing state revenue from natural resource commodities through enhanced governmental oversight and control.

In particular, in an apparent crackdown on “under-invoicing”, the GOI has sought to nationalise the process for exporting certain strategic natural resources. It has also revised the requirements on natural resource export proceeds with the objective of increasing the involvement of Indonesian financial markets (especially state-owned enterprise (SOE) banks) in the trade of natural resources. These reforms will have wide-ranging implications for Indonesia’s natural resources sector.

Government control of natural resource exports

The Indonesian Government has issued new regulations to control exports of “strategic natural resources” by mandating that these exports be conducted exclusively through an appointed SOE, namely PT Danantara Sumberdaya Indonesia (Persero) (the Export SOE).

Under Government Regulation No. 24 of 2026 on the Governance of Exports of Strategic Natural Resource Commodities (GR 24/2026), “strategic natural resources” are determined in stages and, initially, limited to palm oil, coal and ferroalloys (Strategic Natural Resources). However, the list of designated commodities constituting Strategic Natural Resources may later be amended or expanded through further regulations, in coordination with relevant ministries and institutions.

Based on GR 24/2026, Strategic Natural Resources may only be exported by the Export SOE, acting either as the principal (owner) or as the sole export agent for such Strategic Natural Resources. Strategic Natural Resources in the form of ferroalloys may be exempted from this requirement where the relevant business actors have entered into an agreement with the GOI containing provisions relating to: (i) minimum investment amounts in Indonesia, (ii) local divestment arrangements, and (iii) domestic processing and/or refining obligations. To date, there are no further details (or government guidance) regarding the implementation or application of this exemption. However, we expect that, in practice, any exemptions will only be granted on a case-by-case basis in extraordinary circumstances.

The new export arrangements will be implemented in accordance with the following timeline:

Transitional Period (from 1 June 2026 until no later than 31 December 2026)

• In this transitional period, all exports of Strategic Natural Resources must be conducted (by the relevant exporting company) in coordination with the Export SOE.
• During this transitional period, all export and sale activities are still carried out by, and in the name of, the relevant exporting companies (utilising the existing licences held by such exporting companies). However, the relevant export documentation and the relevant sale and purchase or offtake contract must be reported to the Export SOE through the integrated system including Customs Excise Information System and Automation (CEISA), Indonesia National Single Window System (INSWS), INATRADE (maintained by the Ministry of Trade), SiMoDIS (maintained by Bank Indonesia), and/or Minerba Online Monitoring System (MOMS).
• During this transitional period, all sale and purchase or offtake contracts executed before 1 June 2026 for the export of Strategic Natural Resources shall remain valid. However, such contracts will be subject to evaluation by the Export SOE. While not expressly stated in the relevant regulations, we understand that if the Export SOE determines (pursuant to its evaluation) that such contracts are not on market terms, such contracts must be amended to comply with the findings of the Export SOE by no later than the commencement of the implementation period (as specified below). As a result, there is now a material risk that sale and purchase or offtake contracts executed before 1 June 2026 may have to be amended to comply with the findings of the Export SOE. Unfortunately, there is currently no regulatory guidance on the scope or criteria of the applicable amendments that may be required by the Export SOE, meaning that there is currently significant uncertainty as to how the evaluation by the Export SOE will be implemented in practice.

Full Implementation Period (commencing on or before 1 January 2027)

• The specific date of commencement of the full implementation period (which must be on or before 1 January 2027) will be determined by the relevant technical ministries.
• During the full implementation period, all exports of Strategic Natural Resources must be carried out exclusively by the Export SOE, acting either as (i) the owner of the relevant commodities (in which case the Export SOE may determine the sale price of the Strategic Natural Resources), or (ii) the sole intermediary or agent (in which case the Export SOE may determine a reasonable sales margin for such sales, in accordance with prevailing laws and regulations).
• Accordingly, during the full implementation period (unless an exemption applies), affected exporting companies will not be able to obtain or extend their permits or licences to export Strategic Natural Resources since these exporting activities will instead be exclusively conducted by the Export SOE.

The implications of this new regulatory regime are significant and varied.

Implications for natural resource companies. Natural resources companies will no longer be entitled to directly export Strategic Natural Resources to third parties (including affiliated entities). Instead, natural resources companies will have to directly negotiate with the Export SOE on the export of their Strategic Natural Resources (either through sale or through an intermediary/agent relationship, including the payment of a sales margin to the Export SOE). While the GOI has stated that the objective of these new reforms is to increase the sale price of Strategic Natural Resources, in practice, national resources companies are likely to have less commercial leverage in negotiating terms with the Export SOE (compared to the broader commodity trading market), including in respect of risk allocation of the parties and pricing arrangements.

Implications for trading companies. Trading companies currently exporting Strategic Natural Resources from Indonesia will be most directly affected by the changes. In some cases, trading companies may face significant restrictions on their ability to conduct operations (given that their role in Indonesia will effectively be replaced by the Export SOE) and those companies may be unable to obtain export permits or licences to perform their current activities. Global trading companies (such as those operating in Singapore) will also be affected as they will no longer be able to directly import Strategic Natural Resources from natural resources companies in Indonesia. Instead, they will have to acquire the Strategic Natural Resources from the Export SOE. It remains to be seen how the Export SOE will implement sales of Strategic Natural Resources in practice, and whether any public bidding systems will be introduced.

Implications for financiers. Financiers of Indonesian natural resource projects will need to consider the assignment/security arrangements for existing long-term export sales contracts. To the extent that such arrangements are replaced or superseded by the arrangements with the Export SOE, new assignment/security arrangements will need to be put in place. The creditworthiness of the Export SOE (as a counterparty) will also need to be considered. It remains to be seen whether the Export SOE will allow third-party financiers to step into sales contracts/arrangements entered into between natural resources companies and the Export SOE. In general, financiers will need to consider the implications of these changes for the fund flows (including onshore and offshore bank accounts) of the relevant security providers in order to ensure continued protection of the financiers’ interests. In addition, financing structures involving a prepayment arrangement between a natural resources company and an offshore buyer (which rely on commodity set-off repayment) may also be affected by GR 24/2026. The involvement of the Export SOE, whether as an intermediary or agent, or as a seller, may create complexity in the practical operation of such arrangements, given that the Export SOE may have the authority to determine the sale price of the Strategic Natural Resources and the reasonable sales margin.

Revised rules for export proceeds

The GOI also recently amended the requirements for natural resource export proceeds (Devisa Hasil Ekspor Sumber Daya Alam or DHE SDA) through:

• Government Regulation No. 2 of 2026 on Second Amendment to Government Regulation No. 36 of 2023 on Foreign Exchange Export Proceeds from the Business, Management and/or Processing of Natural Resources (GR 2/2026);
• Government Regulation No. 21 of 2026 on Third Amendment to Government Regulation No. 36 of 2023 on Foreign Exchange Export Proceeds from the Business, Management and/or Processing of Natural Resources (GR 21/2026); and
• Bank Indonesia Regulation No. 5 of 2026 on Second Amendment to Bank Indonesia Regulation No. 7 of 2023 on Export Proceeds and Import Payment Foreign Exchange (PBI 5/2026),

(collectively, the Amendments). These Amendments were enacted in response to the pressures of global economic developments, with the ultimate objective of increasing the involvement of Indonesian financial markets (in particular SOE banks) in the trade of natural resources.

The Amendments have introduced several substantive modifications to the DHE SDA placement framework:

• SOE bank placement obligation. Exporters are now required to deposit all DHE SDA in designated special DHE SDA accounts opened and maintained with SOE banks (previously, non-SOE banks could also serve this role). We note that the existing 12-month retention period for mining commodities and 3-month retention period for oil and gas commodities are unchanged.
• 50% rupiah conversion cap. The amount of DHE SDA that may be converted into Indonesian Rupiah is now capped at 50% of the export value declared in the relevant export declaration, calculated on an accumulated basis against DHE SDA placed into the Special DHE SDA Account in the relevant month of placement. Similar to the previous regulatory regime, the Amendments do not set any further restrictions on export proceeds once they are converted to Indonesian Rupiah and therefore, in theory, these proceeds could then be immediately converted back into foreign currency without having to be re-deposited in the dedicated bank account.
• Special treatment for bilateral government-to-government trade exporters. The Amendments provide a carve-out for exporters operating under bilateral trade government-to-government agreements, understandings, or other arrangements on trade. Under this exemption, eligible oil and gas and mining sector exporters are only required to retain a minimum of 30% of their DHE SDA to be deposited in any authorised foreign exchange bank (ie not limited to SOE banks) for a minimum period of three months.

These Amendments expand on the GOI’s ongoing push to utilise natural resource export proceeds to support the Indonesian Rupiah and US dollar deposits of SOE banks.

Going forward

The GOI’s natural resource reforms represent a continued shift toward increased state oversight, strengthened fiscal returns, and a more strategic deployment of Indonesia’s natural resources to support domestic economic priorities. These measures are designed to enhance government revenue, stabilise the Indonesian Rupiah, and position Indonesia more competitively in global value chains.

At the same time, these reforms introduce heightened compliance obligations and additional fiscal burdens that may affect the economic feasibility of both existing and prospective natural resource projects – particularly if the scope of the Export SOE is later expanded to include other natural resource products such as gold, copper and nickel.

As the natural resources regulatory framework continues to evolve, businesses will need to closely monitor future implementing measures as they navigate an increasingly complex and policy-driven regulatory framework.