Export Mandatory Through Special State-Owned Enterprises, Foreign Exchange from 3 Commodities Reaches Rp1,100 Trillion

Jakarta, CNBC Indonesia - The government of President Prabowo Subianto has formed a Special Export State-Owned Enterprise (BUMN Khusus Ekspor). Three commodities that must export via this entity are coal, crude palm oil and ferro-alloys. Prabowo explained that through the Special Export BUMN, the sale of all extractive products starting with crude palm oil, coal, and ferro-alloys must be conducted through the government-designated state enterprises as the sole exporters. ‘In other words, the proceeds from each export sale will be transferred by the designated BUMN to the business actors managing those activities. This can be described as a marketing facility.’ ‘The main aim of this policy is to strengthen oversight and monitoring, as well as to eradicate under-invoicing, transfer pricing, and leakage of export proceeds,’ Prabowo said in the DPR plenary session, on Wednesday (20/5/2026). In Prabowo’s notes, Indonesia is the third-largest exporter of these commodities. For instance, palm oil exports have contributed foreign exchange earnings of US$23 billion or Rp391 trillion in 2025. Coal exports have foreign exchange earnings of US$30 billion or Rp510 trillion in 2025. Ferro-alloy exports have foreign exchange earnings of US$16 billion or Rp272 trillion in 2025. ‘The three strategic commodities generate foreign exchange of US$65 billion or Rp1,100 trillion per year,’ he asserted. However, Prabowo notes Indonesia, as a G20 member, has the lowest ratio of government expenditure to GDP among G20 nations. ‘Our revenue-to-GDP ratio is the lowest among G20 countries according to the latest IMF data. We can see Mexico at 25% of GDP, India 20%, the Philippines 21%, Cambodia 15%, while Indonesia stands at 11-12% of GDP,’ he said.