The Indonesian Palm Oil Producers Association (GAPKI) has voiced concerns over a new regulation mandating that export earnings from natural resources (DHE SDA) must be held in national banks for one year, with a maximum conversion to Indonesian Rupiah of 50%. This policy, slated to take effect on June 1, 2026, is feared to disrupt the cash flow of palm oil commodity exporters.
GAPKI Chairman Eddy Martono highlighted that the regulation could significantly impact the cash flow of palm oil exporting companies, particularly those operating on a small and medium scale. “Not all palm oil exporters are large corporations with robust financial standing,” Eddy stated. “Even large companies might find their cash flow disturbed if 50% of their export earnings are held for a year,” he told Katadata.co.id on Thursday (7/5).
He explained that the obligation for exporters to retain DHE for a full year will compel them to seek alternative funding sources to sustain business operations, with bank loans being a likely option. “With 50% being held for a year, they will automatically need to seek funds from other sources, such as banks, which will undoubtedly incur additional interest costs,” he elaborated.
According to Eddy, the policy’s impact will be felt more acutely by smaller exporters handling limited export volumes. Therefore, exporters with smaller export volumes are expected to be the most affected. GAPKI has urged the government to reconsider the implementation timeline for this policy, citing the current global economic climate, which remains uncertain. “It would be best to postpone it given the unfavorable global conditions,” Eddy advised.
Export Earnings to be Deposited in State-Owned Banks
Previously, the government finalized revisions to Government Regulation (PP) Number 36 of 2023 concerning the DHE SDA policy. Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the new regulation will come into effect on June 1, 2026.
“The revisions to PP 36 have been finalized and will be implemented starting June 1, 2026,” Airlangga stated at the Merdeka Palace in Jakarta on Tuesday (5/5/2026). The revised regulation mandates exporters to deposit their DHE SDA into special accounts at state-owned enterprises (Himbara banks) for one year, with a maximum conversion to Rupiah set at 50%. “So, the change is that DHE SDA must enter Himbara banks and be converted to Rupiah up to a maximum of 50%,” he explained.
However, the government has decided to maintain the existing rules for the oil and gas sector. Oil and gas exporters will continue to adhere to the previous stipulations, requiring them to deposit 30% of their export earnings for three months.
Summary
The Indonesian Palm Oil Producers Association (GAPKI) has expressed significant concerns regarding a new government regulation that mandates exporters to hold 50% of their natural resource export earnings in national banks for one year. Starting June 1, 2026, this policy requires funds to be deposited into state-owned Himbara banks, which GAPKI warns could severely disrupt the cash flow of both small and large palm oil exporters. Industry leaders argue that such constraints will force companies to seek expensive alternative financing, ultimately increasing their operational costs.
In response to the potential financial burden, GAPKI has urged the government to postpone the implementation of these regulations due to current global economic uncertainties. While the government has finalized these revisions for the broader export sector, the oil and gas industry remains exempt from the new requirements, maintaining its existing deposit rules. The palm oil industry continues to advocate for a reconsideration of the policy to prevent negative impacts on domestic business sustainability.
