Below is an English translation of the article.
JAKARTA – A new wave of criticism has emerged over the government’s plan to exempt certain exporters from Indonesia’s requirement to retain Natural Resource Export Proceeds (DHE SDA) within the country.
This time, several civil society organizations have questioned the legality of a policy that would reportedly grant special treatment to the United States under a bilateral trade arrangement.
The Civil Society Coalition for Economic Justice (Koalisi MKE), together with Publish What You Pay (PWYP) Indonesia and INFID, argue that the move could violate existing regulations because the Indonesia–United States Agreement on Reciprocal Trade (Indonesia–U.S. ART) has not yet officially entered into force.
The criticism follows a statement by Coordinating Minister for Economic Affairs Airlangga Hartarto, who indicated that the government is considering exemptions from DHE SDA requirements for partner countries that already have bilateral trade agreements or free trade agreements (FTAs) with Indonesia.
According to Olisias Gultom, Director of the Sahita Institute (Hints), the requirement to place DHE SDA funds within Indonesia is a strategic policy aimed at strengthening national economic resilience.
He explained that export revenues from natural resources should be utilized to support economic stability amid pressure on the rupiah and growing state financing needs.
However, he warned that granting exemptions to companies from foreign trading partners must be approached cautiously, as it could undermine the effectiveness of the policy.
“Any exemption granted by the Indonesian Government to exporters from foreign trade partners that already have FTAs with Indonesia must be carefully considered and may reduce the effectiveness of efforts to maximize economic resilience, given the significant role of foreign companies in natural resource exports,” he said on Tuesday, May 26, 2026.
Do Not Let Foreign Corporations Benefit
A stronger criticism came from Aryanto Nugroho, National Coordinator of PWYP Indonesia.
He argued that relaxing DHE SDA requirements for U.S. companies would once again create opportunities for multinational corporations in the extractive sector to reap substantial profits.
According to Aryanto, Indonesia has long borne the social and environmental costs of natural resource exploitation. Therefore, the financial gains generated from these resources should not continue flowing abroad.
“For years, natural resource exploitation, particularly in the extractive sector, has left behind a massive socio-ecological crisis on the ground. It is deeply unfair for environmental damage to remain in Indonesia while the financial benefits are allowed to fly overseas,” Aryanto said.
He also argued that compromises made under the Indonesia–U.S. ART agreement could represent a form of national economic governance dependency on global pressures.
“Granting DHE SDA exemptions through trade agreement compromises such as the Indonesia–U.S. ART is a clear manifestation of our governance surrendering to pressure from global actors, which is nothing less than a betrayal of national sovereignty,” he added.
Transparency of DHE SDA Management Under Scrutiny
Beyond questions of legality, the civil society coalition also highlighted the lack of transparency in the management of DHE SDA funds.
Aryanto stressed that the government should publicly disclose corporate compliance data and information regarding the management of DHE funds so that the public can monitor implementation of the policy.
He emphasized that liquidity generated from DHE SDA should not merely benefit the banking sector but should also support broader public interests, including environmental restoration and a just energy transition.
“We urge the government to publish corporate compliance data and information on DHE management so that the public can participate in oversight. In addition, we call for clarity regarding the allocation of DHE liquidity and insist that it should not solely benefit the banking sector,” he explained.
Indonesia–U.S. Agreement Has Not Yet Taken Legal Effect
Rachmi Hertanti, a researcher at the Transnational Institute, argued that the government currently lacks a legal basis to grant DHE SDA exemptions to the United States.
She explained that the Indonesia–U.S. ART agreement has not yet entered into force because Indonesia has not completed its ratification process.
Rachmi also pointed to the status of former U.S. President Donald Trump’s reciprocal tariff policy, which she noted had been declared invalid by a ruling of the U.S. Supreme Court.
“The Indonesian Government has committed to reviewing domestic requirements regarding the retention of natural resource export proceeds and has been urged to eliminate those requirements within 12 months after the ART agreement enters into force. However, the ratification process for the ART Agreement has not yet been completed,” she said.
As a result, she argued, the Indonesian Government currently lacks the legal foundation to implement provisions contained in the agreement.
“Therefore, the government cannot grant exemptions from DHE SDA requirements to U.S. trading partners,” she added.
Trade Agreement Could Pressure Farmers and the Rupiah
Meanwhile, Hana Saragih, a researcher at FIAN Indonesia, warned that the trade-balancing requirements proposed by the United States could place additional pressure on Indonesia’s economy.
She argued that commitments to import agricultural products from the United States, such as soybeans and corn, could increase Indonesia’s import burden and contribute to pressure on the rupiah.
Furthermore, exempting U.S. agricultural products from Indonesia’s commodity balance mechanism could weaken protections for local farmers and agricultural prices.
“This agreement effectively limits Indonesia’s ability to regulate food and agricultural imports. If the government ratifies it, Indonesia will no longer have the flexibility to assess domestic needs, protect local producers, enforce national quality standards, or consider social and cultural contexts before products enter the domestic market. The result would be an asymmetrical market-access regime,” Hana explained.
Government Should Not Sacrifice Economic Sovereignty
In its concluding statement, the Civil Society Coalition for Economic Justice urged the government not to use trade agreements as instruments of compromise that undermine national interests.
The coalition called on the government not to proceed with the Indonesia–U.S. ART agreement until a clear legal basis exists and concerns over its potential impact on Indonesia’s economic sovereignty and natural resource governance are adequately addressed.
The coalition also emphasized that strategic economic policies should prioritize the interests of the Indonesian people and national resilience, rather than merely accommodating global market pressures or the interests of other countries.
Source: Konteks.co.id