Indonesian Political, Business & Finance News

Draft Plan for a Special Export State-Owned Enterprise for Coal and Other Commodities

| Source: CNBC Translated from Indonesian | Regulation
Draft Plan for a Special Export State-Owned Enterprise for Coal and Other Commodities
Image: CNBC

Jakarta, CNBC Indonesia - The administration of President Prabowo Subianto is reportedly planning to create a State-Owned Enterprise (BUMN) Special Export for a number of commodities, such as coal and palm oil. The issue has been confirmed directly to several cabinet ministers, including Energy and Mineral Resources Minister Bahlil Lahadalia, Investment/Head of BKPM Rosan P. Roeslani, and Finance Minister Purbaya Yudhi Sadewa.

The officials were in fact reluctant to comment in detail on the plan. However, they asked to wait until this is truly completed. ‘Just wait and see,’ Rosan said at the Office of the Ministry of Energy and Mineral Resources. ‘We will see later,’ said Bahlil yesterday (20/5/2026). ‘Gosh, I don’t know, the President will announce it,’ said Purbaya.

Meanwhile, according to CNBC Indonesia’s findings, the government is actually drafting regulations for the establishment of this Special Export State-Owned Enterprise. In fact, the draft has already circulated among mining entrepreneurs.

From the draft received by CNBC Indonesia, the regulation will be in the form of a Government Regulation (PP) on ‘Governance of Exports of Strategic Natural Resource Commodities Through State-Owned Enterprises’.

This draft has not yet been signed by President Prabowo Subianto. Here is the content of the draft that circulates:

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 area.

  2. Strategic Natural Resource Commodities are natural resource commodities designated by the Government, taking into account national interest, economic stability, domestic needs, and/or management of strategic national natural resources.

  3. State-Owned Enterprise hereafter abbreviated as BUMN is an entity that meets at least one of the following:

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

  2. there are privileges held by the Republic of Indonesia.

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

Chapter II

DETERMINATION OF STRATEGIC NATURAL RESOURCE COMMODITIES

Article 2

  1. 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 Strategic Natural Resource Commodities as referred to in paragraph (1) letter c through a coordination meeting chaired by:

  1. the minister responsible for coordinating and synchronising and controlling the execution of affairs of the ministry in charge of economic governance; or

  2. the minister responsible for coordinating and controlling affairs in the field of agriculture,

attended by ministers/head of non-ministerial government bodies.

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

Chapter III

EXPORT GOVERNANCE

Article 3

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

  2. The BUMN Export referred to in paragraph (1) shall be designated in accordance with the regulations governing state-owned enterprises.

Article 4

  1. Export governance 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 the laws and regulations.

  1. Further provisions on export governance of Strategic Natural Resource Commodities as referred to in paragraph (1) shall be set by each minister/head of the relevant non-ministerial government agencies in accordance with their authority.

Chapter IV

GUIDANCE AND SUPERVISION

Article 5

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

Chapter V

TRANSITIONAL PROVISIONS

Article 6

Upon the entry into force of this Government Regulation:

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

  2. Exports of Strategic Natural Resource Commodities under Article 2 after 31 December 2026 shall be conducted only by BUMN Export.

  3. If the implementation of Export of Strategic Natural Resource Commodities under Article 2 has already been fully transferred to BUMN Export before 31 December 2026, export shall be conducted in accordance with the provisions as referred to in item b.

(pgr/pgr)

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