Targeted Relief for Mining Exporters
Under Article 18A of Government Regulation No. 21/2026, Jakarta has introduced a special export-proceeds facility for qualifying mining companies. Under the general regime, non-oil and gas mining exporters must place 100 percent of export proceeds in the domestic financial system for 12 months. Now, eligible miners can retain at least 30 percent of proceeds for a minimum of three months. Placement is permitted at designated foreign-exchange banks, not only state-owned institutions.
The facility applies to export declarations dated from 1 September 2026. All mining export proceeds must still be repatriated to the domestic financial system. What changes is the proportion and tenor of funds parked in dedicated accounts. As a result, the reform eases liquidity constraints without dismantling the broader natural-resource export-proceeds framework.
The regime is optional. Guidance from the Coordinating Ministry for Economic Affairs shows that exporters who decline must notify Bank Indonesia in writing within five working days of the eligible-company list being published. Firms that remain silent are deemed to have opted into the lighter 30-percent, three-month conditions. The package must be adopted as a whole. That structure lets policymakers test demand for more flexible rules while preserving the restrictive default for companies that prefer stability.
Who Qualifies and Why Capital Flows Are Affected
The new facility is tightly targeted. Only mining exporters organised as Indonesian limited liability companies can qualify. They must also have at least one shareholder from a designated partner country — the United States, China, Hong Kong, Australia, or Canada — holding at least 10 percent of shares. Ministry implementation notes show that 64 mining exporters met the initial criteria, around 12 percent of the 537 companies reviewed. The eligible list updates monthly, adding rolling scrutiny and creating an incentive for potential entrants to align ownership structures with the rules.
Authorities have designated 15 foreign-exchange banks to host the special export-proceeds accounts. This expands placement options beyond the state-bank channel used under the general regime. Large miners gain more room to integrate export-proceeds management with broader treasury operations. The change sits within bilateral trade arrangements and is designed to support strategic foreign investment while maintaining control over aggregate foreign-exchange liquidity.
What Does the Reform Signal for Investors?
Mining remains central to Indonesia’s external accounts. The Energy and Mineral Resources Ministry reported non-tax mining revenue of 108 trillion rupiah (approximately US$6.15 billion) through 31 August 2026, up 21 trillion rupiah year on year. However, the sector’s share of GDP has slipped below nine percent, from more than 12 percent in 2022, even as headline growth stayed solid. This trend is relevant to Indonesia’s broader mining revenue trajectory tracked across the same period.
Against that backdrop, the new facility positions Indonesia as more competitive for capital-intensive projects in nickel, copper, and coal. One Jakarta-based strategist put it plainly: Indonesia is loosening the grip on mining dollars just enough to keep investors interested, but not enough to unsettle the central bank. The signal for institutional investors is constructive. The facility reduces working-capital drag for a defined group of foreign-backed miners and suggests scope for further targeted easing if macro-stability holds. Meanwhile, the broader 100-percent, 12-month regime stays in place for other natural-resource exporters, underlining Jakarta’s continued focus on foreign-exchange buffers. Investors should watch three indicators next: opt-in rates during the first review cycle, any expansion of the partner-country list, and how Bank Indonesia balances this flexibility with wider capital-account controls as commodity prices and mining quotas shift into 2027.
Quick answers
Under Government Regulation No. 21/2026, eligible mining exporters can retain at least 30 percent of export proceeds for a minimum of three months, down from the standard 100 percent held for 12 months.
Only Indonesian limited liability companies with at least one shareholder from the US, China, Hong Kong, Australia, or Canada holding at least 10 percent of shares qualify. Approximately 64 companies — 12 percent of 537 reviewed — met the initial criteria.
The Energy and Mineral Resources Ministry reported non-tax mining revenue of 108 trillion rupiah (approximately US$6.15 billion) through 31 August 2026, an increase of 21 trillion rupiah year on year.
