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Confirmed! Prabowo Announces Creation of Special Export State-Owned Enterprises for Coal and Other Commodities

| Source: CNBC Translated from Indonesian | Regulation
Confirmed! Prabowo Announces Creation of Special Export State-Owned Enterprises for Coal and Other Commodities
Image: CNBC

Jakarta, CNBC Indonesia – Indonesian President Prabowo Subianto has asserted that his administration will form a Special Export State-Owned Enterprise (BUMN Ekspor). He emphasised this during a Plenary Session of the DPR RI on Wednesday, 20 May 2026.

“To achieve our national goals, today the government I lead has issued a Government Regulation on the governance of the export of natural resource commodities. The issuance of this procedural regulation is a strategic step to strengthen governance of the export of our natural resource commodity materials,” Prabowo said, on Wednesday 10 May 2026.

Prabowo explained that the sale of all Indonesian natural resource outputs, from palm oil, coal, and ferro alloys, must be conducted through a Special Export State-Owned Enterprise. “Sales must be carried out through a BUMN appointed by the Government of the Republic of Indonesia as the sole exporter. In other words, every export output will be routed by the government-appointed BUMN to the business operators managing those activities,” Prabowo said.

Prabowo stated that the purpose of forming this Special Export BUMN could be described as a marketing facility, thereby strengthening oversight and monitoring to root out practices of underpayment, under invoicing, transfer pricing, and the flight of export proceeds.

“This policy will optimise tax and state revenue from the management of our natural resources. With this policy we hope our revenue can be on a level with Mexico, the Philippines, and our neighboring countries,” he added.

“We do not want our revenue to be among the lowest because we are not bold enough to manage our own assets, the nation’s own property,” Prabowo asserted.

The following is the complete draft regulation on the Governance of the Export of Strategic Natural Resource Commodities through State-Owned Enterprises:

Chapter I – General Provisions

Article 1

In this Government Regulation, the following definitions apply:

  1. Export means the activity of removing goods from the Indonesian customs territory.

  2. Strategic Natural Resource Commodities are natural resource commodities defined by the Government considering national interests, economic stability, domestic needs, and/or management of nationally strategic natural resources.

  3. State-Owned Enterprise (BUMN) means an enterprise that fulfils at least one of the following:

    1. all or most of its capital is owned by the Republic of Indonesia through direct participation; or

    2. there are special rights held by the Republic of Indonesia.

  4. Export BUMN, hereafter called BUMN Ekspor, is a BUMN that has been given a special mandate by the Government to carry out the export of Strategic Natural Resource Commodities.

Chapter II – Designation of Strategic Natural Resource Commodities

Article 2

  1. The Strategic Natural Resource Commodities subject to export governance include:

  1. coal;

  2. palm oil; and

  3. other Strategic Natural Resource Commodities.

  1. The Government may change the Strategic Natural Resource Commodities as referred to in paragraph (1) letters a and b and designate other commodities as referred to in paragraph (1) letter c through a coordination meeting chaired by:

  1. the minister responsible for the coordination and control of economic affairs; or

  2. the minister responsible for the coordination and control of the agricultural sector,

attended by ministers/heads of non-ministerial government agencies.

  1. The designation of changes to Strategic Natural Resource Commodities and other Strategic Natural Resource Commodities as referred to in paragraph (2) shall be regulated in a ministerial regulation dealing with trade.

Chapter III – Export Governance

Article 3

  1. The Strategic Natural Resource Commodities referred to in Article 2 may only be exported by an Export BUMN.

  2. An Export BUMN as referred to in paragraph (1) is designated in accordance with the provisions of laws regulating State-Owned Enterprises.

Article 4

  1. The governance of Export of Strategic Natural Resource Commodities as referred to in Article 2 may be conducted through:

  1. export controls; and/or

  2. other mechanisms in accordance with the provisions of law.

  1. Further provisions on governance of Export of Strategic Natural Resource Commodities as referred to in paragraph (1) shall be issued by the respective ministers/head of relevant non‑ministerial government agencies in accordance with their authority.

Chapter IV – Guidance and Supervision

Article 5

Guidance and supervision of the implementation of the governance of Export of Strategic Natural Resource Commodities shall be carried out by each minister/head of the relevant non‑ministerial government agencies in accordance with their authority.

Chapter V – Transitional Provisions

Article 6

Upon the commencement of this Government Regulation:

  1. Export of Strategic Natural Resource Commodities as referred to in Article 2 may only be conducted through an Export BUMN until 31 December 2026.

  2. After 31 December 2026, export of Strategic Natural Resource Commodities may only be conducted by an Export BUMN.

  3. If the export of Strategic Natural Resource Commodities as referred to in Article 2 has already been fully transferred to an Export BUMN prior to 31 December 2026, such exports shall be conducted in accordance with the provisions of paragraph (b).

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