Indonesia will require exporters of non-oil and gas natural resources to place 100% of their export proceeds (DHE) in state-owned banks from January 1, 2026, under a revised regulation aimed at strengthening foreign exchange reserves, Kontan reported.

This amendment came as previous policy was deemed incapable of significantly increasing foreign exchange reserves.

The government has amended Government Regulation No. 8/2025 to mandate that proceeds from natural resource exports will all be placed in member banks of the Association of State-Owned Banks (Himbara). The previous regulation did not specify the definition of bank placement, meaning exporters could be placed in any domestic bank.

Meanwhile, exporters must continue to retain all foreign exchange earnings for at least 12 months, remaining unchanged compared with the previous version, but the amount that can be converted into rupiah will be capped at 50%, down from 100% previously.

The permitted use of foreign exchange has been expanded to include procurement of goods and services and working capital needs, not limited to goods that cannot be produced domestically.

The revision also widens eligible placement instruments to include foreign-currency government securities (SBN), which cannot be withdrawn before the retention period ends.

Myrdal Gunarto, economist at Maybank Indonesia, said the changes are intended to secure foreign exchange liquidity but warned that limiting placement to Himbara banks could sideline other lenders capable of offering competitive products.

"Many non-Himbara banks can also provide solutions to attract exporters' funds. They should also be given the opportunity," he told Kontan.

He recommended shortening the mandatory retention period to six months and making rupiah conversion requirements more flexible. He also suggested Bank Indonesia strengthen the use and promotion of its foreign-exchange term deposit instruments to draw more export earnings into the onshore financial system.