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View all search resultsIndonesia exempts oil and gas from export centralization
Speaking before the House of Representatives’ plenary on Wednesday, President Prabowo Subianto announced that exports of certain commodities will eventually be conducted through a single SOE.
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Energy and Mineral Resources Minister Bahlil Lahadalia speaks on April 6 at the Energy and Mineral Resources Ministry office in Jakarta. (Antara/Putu Indah Savitri)
T
he government has confirmed that President Prabowo Subianto’s newly announced “single-gate” export policy will include exemptions for the oil and gas sector, as officials do not want to disrupt investment in the capital-intensive industry.
“There is certainly some concern following the President’s announcement on the centralized natural resource exports through state-owned enterprise (SOE). I bring a special message from the President: the regulation does not apply to the upstream oil and gas sector. So, there is no need to worry, it’s business as usual,” Energy and Mineral Resources Minister Bahlil Lahadalia said when opening the Indonesian Petroleum Association Conference and Exhibition (IPA Convex) 2026 in BSD, Banten, on Wednesday, as quoted by Kompas.
Aside from that, the minister also stated that oil and gas sector would not be affected with the obligation for exporters to retain all of their foreign exchange export proceeds (DHE) domestically in state-owned banks.
“Because investments in the sector rely heavily on foreign loans, we are not requiring 100 percent of the DHE to be retained domestically. Even if there is a requirement, it would be capped at a maximum of 10 to 30 percent,” he added.
Read also: Govt mandates coal, CPO exports through state agency
Meanwhile, Coordinating Economy Minister Airlangga Hartarto said the revised regulation expanded exemptions allowing exporters in the mining, oil and gas, and non-oil sectors to place part of their export earnings outside Himbara banks.
“The revised policy under the government regulation expands exemptions for DHE placement outside Himbara banks for the mining, oil and gas, and non-oil sectors,” Airlangga said in Jakarta on Wednesday as quoted by CBNC Indonesia.
