Civil Society Coalition Questions Legal Basis for Exempting U.S. Exporters from DHE SDA Requirements
Jakarta – The Civil Society Coalition for Economic Justice (MKE) has questioned the legal basis for the Indonesian Government’s plan to exempt United States exporters from the requirement to place 100% of Natural Resource Export Proceeds (DHE SDA) in state-owned banks (Himbara).
In a joint statement issued by Publish What You Pay (PWYP) Indonesia and the International NGO Forum on Indonesian Development (INFID), the coalition argued that the proposed exemption is problematic because the reciprocal bilateral trade agreement between Indonesia and the United States has not yet been ratified by Indonesia.
The criticism follows a statement by Coordinating Minister for Economic Affairs Airlangga Hartarto, who indicated that exemptions would be granted to exporters from trading partner countries that have bilateral trade agreements or free trade agreements (FTAs) with Indonesia.
Olisias Gultom, Director of the Sahita Institute (HINTS), stated that the policy requiring natural resource export earnings to be retained domestically, particularly in Himbara banks, is a positive step toward ensuring that Indonesia’s natural wealth provides maximum benefits to the national economy. This is especially important amid economic pressures caused by the weakening rupiah and limited fiscal capacity to finance the state budget deficit.
“Any exemption granted by the Indonesian Government to exporters from foreign trading partners that already have FTAs with Indonesia must be approached with caution and may undermine efforts to maximize economic resilience, given the significant role of foreign companies in natural resource exports. Such exemptions would effectively roll out the red carpet once again for multinational corporations to extract even greater profits from the extractive sector,” he said on Monday (May 25, 2026).
Aryanto Nugroho, National Coordinator of PWYP Indonesia, emphasized that the DHE SDA policy is, at its core, a minimum safeguard against capital flight in the natural resource sector.
“For years, natural resource exploitation—particularly in the extractive industries—has left behind widespread social and ecological crises on the ground. It is deeply unfair for environmental damage to remain in Indonesia while the financial gains are allowed to flow overseas.
“Granting DHE SDA exemptions through trade agreement compromises such as the Indonesia–U.S. ART Agreement is a clear manifestation of our governance yielding to pressure from global actors and represents a betrayal of national sovereignty,” Aryanto asserted.
Aryanto also stressed that the success of the DHE SDA policy depends on full transparency in its implementation, accountable oversight, and safeguards to ensure that businesses are not disproportionately burdened.
Meanwhile, Rachmi Hertanti, a researcher at the Transnational Institute, argued that granting the United States a specific exemption from the domestic retention requirement for export proceeds is not legally possible because the Indonesia–U.S. ART Agreement has not yet entered into force due to the absence of ratification.
Furthermore, the reciprocal tariffs imposed by President Trump have been deemed unlawful by a ruling of the U.S. Supreme Court, which, according to Rachmi, further undermines the legal basis of the Indonesia–U.S. ART Agreement.
“The Indonesian Government has committed to reviewing the domestic retention requirement for natural resource export proceeds and has agreed that, within 12 months after the ART Agreement enters into force, the requirement should be abolished. However, the ratification process has not yet taken place. This means there is currently no legal basis for the government to implement such measures,” Rachmi said.
Previously, the MKE Coalition urged that the trade agreement should not become an instrument for bargaining away state control over natural resources at the expense of the public interest. The coalition also called on the government not to proceed with the ART Agreement, arguing that it lacks a valid legal foundation in the United States.
Source: Kabar24 Bisnis