On July 12, 2023, the Government of Indonesia (the
"Government") enacted Government
Regulation No. 36 of 2023 on the Foreign Exchange Export Proceeds
from the Business, Management, and/or Processing of Natural
Resources ("GR 36/2023"). GR 36/2023
sets as an update to, and revokes, Government Regulation No. 1 of
2019 dated June 1, 2019, on the Foreign Exchange Export Proceeds
from the Business, Management, and/or Processing of Natural
Resources ("GR 1/2019").
GR 36/2023 will enter into force from August 1, 2023.
Under its consideration, GR 36/2023 states GR 1/2019 must be
updated to accommodate the latest developments in the Indonesian
financial system. Further, GR 36/2023 states that the foreign
exchange export proceeds in relation to natural resources
(Devisa Hasil Ekspor Sumber Daya Alam or the
"DHE SDA") must be retained in
Indonesia's financial system to maintain the sustainability of
development, improvement, and resilience of the national economy,
as well
