The Indonesian government is rolling out a significant two-pronged fiscal and monetary policy overhaul. Finance Minister Purbaya Yudhi Sadewa announced plans for a new coal export duty, while simultaneously confirming sweeping revisions to the Export Proceeds from Natural Resources (DHE SDA) regulations. These proactive measures aim to strengthen the nation’s coffers and fortify its foreign exchange reserves amidst evolving global economic landscapes.

Indonesia’s Coal Sector Braces for New Export Duty

On Monday, December 8th, Finance Minister Purbaya Yudhi Sadewa revealed the government’s intention to implement an export duty on coal ranging from 1% to 5%. This proposed levy marks a pivotal shift in Jakarta’s approach to its vast coal resources. While specific details remain under wraps, Minister Sadewa indicated that the duty’s application
might be contingent on coal quality, signaling a nuanced, adaptive policy rather than a blanket charge. Furthermore, the government will keenly observe global price trends to ensure the industry’s long-term viability and competitiveness.

The timeline for this significant fiscal adjustment is nearing; Minister Sadewa had previously hinted in November 2025 that the duty could be rolled out as early as 2026. Concurrently, Energy and Mineral Resources Minister Bahlil Lahadalia is reportedly engaged in discussions to establish a minimum reference price for coal that would trigger the imposition of this duty, creating a clear threshold for exporters.

Tightening the Reins: DHE SDA Regulations Undergoing Major Revision

Beyond coal, Minister Sadewa also corroborated reports concerning a substantial revision to the country’s Export Proceeds from Natural Resources (DHE SDA) regulations. This strategic overhaul mandates exporters to deposit their foreign exchange earnings with state-owned banks, known as Himbara, and introduces stricter controls on Rupiah conversion. The primary objective is to ensure a greater proportion of valuable foreign currency remains within Indonesia’s financial system, bolstering the central bank’s reserves and enhancing monetary stability.

Key Changes to DHE SDA: A Deep Dive

Local financial daily Kontan, on Monday morning, provided early insights into the revised framework:

• The existing requirement for 100% placement of non-oil & gas DHE SDA funds for a 12-month period remains unchanged. This ensures a consistent, albeit lengthy, retention period for critical export revenues.
• A significant amendment introduces a cap on foreign currency conversion to Rupiah: it will be limited to a maximum of 50%, a sharp reduction from the previous 100% allowance. This move directly addresses the goal of retaining more FX domestically.
• The scope of eligible placement instruments will broaden considerably, now including foreign currency government securities (SBN valas). This expands beyond the current options of special accounts, banking instruments, and Bank Indonesia instruments, offering exporters more avenues for compliance while still serving national economic goals.

Further amplifying the flexibility for exporters, CNBC Indonesia reported that the DHE SDA revisions will also allow for expanded use of foreign currency for loan repayments. This includes working capital loans and removes prior restrictions on goods procurement, which previously only permitted FX for items not domestically produced. Such changes could significantly enhance exporters’ operational agility.

Notably, Coordinating Minister for Economic Affairs, Airlangga Hartarto, had in October 2025 hinted at offering more facilities for natural resource exporters. Whether these additional incentives are integrated into the revisions reported by Kontan and CNBC Indonesia, or if they represent a separate future initiative, remains to be seen.

Implications for Indonesia’s Economic Trajectory

These impending policy adjustments signal a determined effort by the Indonesian government to assert greater control over its natural resource wealth and the flow of foreign exchange. By imposing a coal export duty, Jakarta seeks to capture more value from its primary commodity exports. Simultaneously, the DHE SDA revisions represent a strategic mechanism to fortify the nation’s foreign exchange reserves, reduce vulnerability to external shocks, and foster a more robust domestic financial ecosystem. Exporters, while gaining some flexibility in FX utilization, will need to adapt to stricter compliance requirements, underlining the government’s commitment to maximizing national economic benefits from its export prowess.