Debureaucratisation and Deregulation Welcomed as Export Centralisation Comes Under Scrutiny
Jakarta, Kompas — The Prabowo administration promises debureaucratisation and deregulation. At the same time, it aims to implement centralised export governance for natural resources.
The business world welcomes the government’s commitment to reform the bureaucracy and deregulation to improve the investment climate. However, business players are wary of a one-stop export policy for natural resource commodities, as it could add to trade uncertainty.
These policy contrasts are drawing attention from businesses. On one hand, the government is seeking to cut investment barriers and expand the private sector’s role as a driver of economic growth. On the other, concerns arise that centralising export governance could add new administrative layers that affect trade flexibility and trading relationships with international buyers.
APINDO Chairman Shinta W Kamdani, in Jakarta, on Thursday (21 May 2026), said that business basically understands the government’s move to strengthen governance of exports of strategic natural resources through the creation of a state-controlled export body. He argues that strengthening export governance is important to increase trade transparency, protect foreign exchange earnings from exports, and prevent practices of under invoicing that could reduce state revenue.
Nevertheless, Shinta warned that policy implementation must be designed carefully because trade in strategic commodities involves a complex international supply chain, spanning long-term contracts, global price mechanisms, shipping, trade finance, and trading relationships built up over many years with international buyers.
“We must not add bureaucratic layers or administrative processes that could affect trade efficiency and delivery certainty to international buyers,” she said.
According to him, in global commodity trade, reliability, delivery time certainty, and operational flexibility are key factors in maintaining market confidence in Indonesia as a global supplier.
Therefore, the government is urged to ensure that the export process remains efficient and does not reduce the commercial flexibility needed in international trade.
The business world has highlighted the government’s new policy after President Prabowo Subianto announced the issuance of Government Regulation on Export Governance of Strategic Natural Resource Commodities in his speech delivering the Macro Economic Framework and the Key Policy of the Economic and Fiscal Policy Framework for the 2027 State Budget (RAPBN 2027) in the House of Representatives on Wednesday (20 May 2026).
Under the regulation, the government requires the sale of strategic commodities, such as palm oil, coal, and ferro alloys, to be conducted through a state-owned enterprise designated as the single exporter.
In line with this policy, BPI Danantara established PT Danantara Sumberdaya Indonesia as a one-stop platform for documentation and export transactions of natural resource commodities. The formation of this company aims to enhance transparency of national commodity trade, while simultaneously curbing manipulation of export values, such as under invoicing and transfer pricing.
Bending the truth? Benny Soetrisno, Chairman of the Indonesian Export Company Association (Gabungan Perusahaan Ekspor Indonesia), warned that many exporters currently have long-term contracts with overseas buyers. This includes price agreements and delivery schedules over a certain period. Some transactions also take place through spot trading, following dynamics in the global market. “Exporters already have long-term export contracts with delivery times and prices agreed for a period,” he said.
He added that the government needs to clarify whether contracts already in force can be transferred or represented by the new export body, including the payment mechanism. “There are also spot transactions. Will those contracts be represented by the export body? Including how payments would work,” he said.
Although he remains cautious about the new export governance, the business world at the same time continues to welcome the government’s steps to accelerate regulatory reform and reduce investment barriers.
In his speech to the House, President Prabowo asked ministries and agencies to cut bureaucratic red tape that has long hindered investment and business activity. The President even highlighted the slow pace of business licensing in Indonesia compared with several other countries in the Southeast Asia region.
Shinta assessed that bureaucratic reform remains an urgent need, particularly amid industry pressure and the threat of global economic slowdown. However, the effectiveness of deregulation depends on the consistency of policy implementation on the ground.
“The success of deregulation cannot be measured merely by the number of rules cut, but by the extent to which the reform creates consistent business certainty,” she said.
The main challenge for business so far, she added, is not just the sheer volume of regulations, but overlapping policies and inconsistent implementation across agencies or local governments. Therefore, the government must ensure policy alignment from the central level to regional levels so that businesses do not face repetitive administrative barriers.
Amid efforts to accelerate investment, businesses also face pressure from rising energy and raw material prices due to global turmoil. This has begun to raise concerns about the risk of layoffs, especially in labour-intensive manufacturing sectors.
Shinta said that there has not yet been evidence of systemic mass layoffs. Adjustments are still occurring variably by sector and company. However, some indicators have begun to show a slowdown in activity.