Indonesia\u2019s government plans to form a special state body to oversee\nexports of strategic commodities have drawn attention from mining\nplayers. The Indonesian Mining Association (IMA) has urged the\ngovernment to review the policy comprehensively to maintain balance\nbetween strengthening governance, optimising state revenue, and the\nsustainability of the mining industry.<\/p>\n
Executive Director of the Indonesian Mining Association, Sari\nEsayanti, said the mining industry principally supports the government\u2019s\nmove to tighten supervision of the mineral and coal sector. However,\npolicy implementation must consider long-term sales agreements already\nagreed with overseas buyers.<\/p>\n
\u2018In implementation, it is necessary to still observe business\ncertainty, continuity of long-term contracts, and a competitive\ninvestment climate so that Indonesia\u2019s mining industry remains trusted\nand can grow sustainably,\u2019 Sari said in a written statement, Wednesday,\n20 May 2026.<\/p>\n
According to Sari, many mining companies have prepared investment\ncalculations and the economics of their business based on long-term\ncontracts. Therefore, legal certainty and policy stability are important\nto maintain market confidence and the competitiveness of Indonesia\u2019s\nmining industry on the global stage.<\/p>\n
Previously, President Prabowo Subianto stated that the government\nwould require exports of certain strategic natural-resource commodities\nto be conducted through designated state-owned enterprises as sole\nexporters. The commodities to be exported under this mechanism at the\ninitial stage include palm oil, coal, and ferro-alloy.<\/p>\n
In his speech to the DPR\u2019s Plenary Session on the Macro Economy\nFramework and the Fundamentals of Fiscal Policy for the 2027 RAPBN,\nPrabowo said the policy aims to strengthen export supervision while\nreducing under-invoicing, transfer pricing, and foreign-exchange leakage\nfrom exports.<\/p>\n
\u2018The sale of all our natural resources outputs, we will begin with\npalm oil, coal, and ferro-alloy steel, and we will require the sellers\nto channel sales through a state-owned enterprise designated by the\nGovernment of Indonesia as the sole exporter,\u2019 Prabowo said.<\/p>\n
Economist Syafruddin Karimi of Andalas University views that\nestablishing a state institution to manage commodity exports could\nstrengthen national economic sovereignty if implemented transparently\nand accountably. However, he warned the government to learn from the\nexperience of BPPC (Badan Penyangga dan Pemasaran Cengkeh) in the New\nOrder era, which led to rent-seeking monopolistic practices due to weak\noversight and transparency.<\/p>\n
According to Syafruddin, the key issue is not the state\u2019s presence in\ncommodity trade but the design of the institution. If the new entity\nmerely serves as a single export gateway without price transparency and\nindependent oversight, the policy risks creating a new monopoly.<\/p>\n
\u2018Conversely, if run with open governance that protects producers, the\nbody could become an instrument to strengthen national economic\nsovereignty,\u2019 he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/mining-association-responds-to-government-plan-for-state-owned-commodity-export-entity-1779545782", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }