PALMOILMAGAZINE, JAKARTA — Indonesia’s export proceeds retention policy, known as Devisa Hasil Ekspor (DHE), is still under close watch by palm oil industry players. The Indonesian Palm Oil Association (GAPKI) says the current rules remain broadly manageable for companies, but warns that weak compliance could expose exporters to serious sanctions, including export suspensions.
GAPKI Chairman Eddy Martono said the existing DHE framework has not significantly disrupted palm oil operations, as long as companies maintain disciplined financial management and proper planning.
Throughout 2025, exporters were required to retain 100% of their export proceeds for one year. However, the funds could still be withdrawn to cover operational expenses. According to Eddy, this arrangement has not posed major problems for most palm oil producers, whose core operating costs are largely denominated in rupiah.
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“Most of our operational spending is in rupiah, so this policy has not been a major issue, except for companies that rely heavily on imported equipment or machinery,” Eddy said during the Plantation Outlook 2026 webinar, attended by Palmoilmagazine.com on Thursday (15/1/2026).
He also responded to discussions around a possible follow-up scheme that would require 50% of export proceeds to be locked in state-owned banks (Himbara) for one year without access. Eddy noted that if corporate financial governance is sound, the remaining 50% should still be sufficient to support daily operational needs.
However, he cautioned that the industry must pay close attention to the increasingly integrated monitoring system. Under the current mechanism, Bank Indonesia automatically tracks export notifications from Customs. If export proceeds are not deposited within three months, companies may receive formal warnings. Continued non-compliance, he said, could escalate into export restrictions.
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“This is what exporters really need to understand. If reporting and administration are not aligned, companies could face serious technical problems that ultimately disrupt their export activities,” Eddy said.
He urged authorities to ensure that the DHE policy does not evolve into an additional burden on the palm oil sector. Eddy stressed that any accompanying measures, such as higher export levies, could ripple through the industry and weaken domestic price levels.
“If export charges are raised, the pressure will be felt. Domestic prices would inevitably come under strain,” he concluded. (P2)
