Indonesia widens eligibility for mining export proceeds relief

Indonesia has expanded the list of partners covered by relaxed export proceeds retention rules for eligible mining companies, adding South Korea, Japan and the European Union. Coordinating Minister for Economic Affairs Airlangga Hartarto announced the additions in Jakarta on 6 November 2026.

The decision was made at a limited coordination meeting on 3 November 2026. The list previously covered the United States, Canada, China including Hong Kong, and Australia.

Under the Article 18A facility, qualifying mining exporters must retain at least 30 per cent of their natural-resource export proceeds for at least 3 months after depositing them in a designated special account. They may use banks authorised to conduct foreign-exchange business, including banks that are not state-owned, for placement and conversion into rupiah.

Finance Minister Regulation No. 48 of 2026 sets three cumulative eligibility conditions: the exporter must be a limited liability mining company, have at least one shareholder from a designated partner, and that shareholder must hold at least 10 per cent.

The general framework requires exporters to repatriate 100 per cent of natural-resource export proceeds into Indonesia’s financial system. Outside the facility, non-oil-and-gas mining exporters must retain 100 per cent for at least 12 months at state-owned foreign-exchange banks. Oil-and-gas mining exporters must retain at least 30 per cent for at least 3 months at those banks.

Eligible companies choosing not to use Article 18A must notify the head of Bank Indonesia’s compliance and reporting management department by letter within 5 working days of the announcement. Copies must go to the secretary of the Coordinating Ministry for Economic Affairs and the Finance Ministry’s director-general for economic and fiscal strategy. Without that notification, an eligible exporter is automatically deemed to have chosen the facility.