Jakarta. Indonesia is considering expanding the list of exempt countries and designating banks to receive export proceeds under its foreign exchange retention policy for natural resource exporters.

"We are making sure which countries will be exempted, which banks can receive the export proceeds, and which companies will be subject to the policy, including all the technical details," Finance Minister Purbaya Yudhi Sadewa said on Thursday after a coordination meeting involving Bank Indonesia, the Financial Services Authority (OJK), and sovereign wealth fund Danantara.

Purbaya said more countries would be added to the exemption list but declined to identify them, saying Chief Economic Affairs Minister Airlangga Hartarto would announce the final list after technical discussions conclude.

Currently, the United States is the only country publicly exempted by the government from the DHE retention requirement. Purbaya said additional countries would be added to the list, with the names to be announced by Chief Economic Affairs Minister Airlangga Hartarto once the technical review is completed.

The regulation requires oil and gas exporters to retain at least 30% of their export proceeds domestically for a minimum of three months, while non-oil and gas exporters must place 100% of their export earnings in Indonesia for at least 12 months.

The funds will be deposited in special accounts at government-designated banks. Thursday's meeting also discussed criteria for banks eligible to receive the deposits.

The regulation also tightens foreign exchange conversion rules by limiting exporters to converting a maximum of 50% of their retained foreign currency into rupiah, down from the previous limit of 100%.

The government says the policy aims to strengthen Indonesia's foreign exchange reserves and support rupiah stability while still allowing exporters to use part of the funds for operational needs.

Earlier, China, Indonesia's largest trading partner with bilateral trade totaling $154.6 billion in 2025, raised concerns over the policy in a letter from the China Chamber of Commerce to President Prabowo Subianto. One of the concerns the letter mentioned was about the DHE policy. Chinese businesses warned the DHE rule could disrupt corporate cash flow and liquidity.

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