Government to impose export proceeds retention policy on oil and gas sector
Thursday, May 21 2026 - 08:30 AM WIB
By Calvin Purba
The government will implement a mandatory export proceeds (DHE) retention policy for the oil and gas sector, despite previously stating that the industry would be exempt from the regulation.
Bahlil Lahadalia, Minister of Energy and Mineral Resources (ESDM), said the oil and gas industry would still be subject to the DHE retention policy, although only up to a maximum of 30%.
“Investment in the upstream oil and gas sector requires enormous capital and carries very high risks. Since much of the investment is financed through loans from overseas, we are not asking for 100% of the export proceeds to be retained domestically. Even if implemented, it would only be around 10% to a maximum of 30%,” Bahlil said on the sidelines of the 50th IPA Convex 2026 on Wednesday (20/5).
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This policy contrasts with the government’s previous stance, which exempted the oil and gas sector from export proceeds regulations due to the unique characteristics of its business operations.
“The business characteristics and payment structures in the O&G sector are somewhat different,” explained Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso to reporters.
However, the percentage of export proceeds required to be retained domestically will not be as high as that imposed on the mining sector, which must place 100% of its export proceeds in the domestic financial system. The oil and gas sector will also be subject to a shorter retention period of three months, compared with 12 months for the mining sector.
Editing by Reiner Simanjuntak