Forming an Export Authority, Prabowo Cites Malaysia, Vietnam and Russia as Examples

Jakarta, CNBC Indonesia - President Prabowo Subianto has officially announced the formation of a dedicated export authority that will become the sole company exporting Indonesia’s natural resource outputs. In forming the body which will take the form of a state-owned enterprise (BUMN), Prabowo said he learned a lot from various countries which have similar policies. “This policy has been implemented by other countries that truly master the wealth of their natural resources,” Prabowo said during a speech at the DPR building, Jakarta, Wednesday (20/5/2026). The list of countries referenced includes Saudi Arabia, Qatar, Russia, Algeria, Kuwait, Morocco, Ghana, Malaysia, and Vietnam. “We must not be naive, naive, and not use our common sense; we must learn from countries like these, they have been able to manage our natural resource wealth for the benefit of their people,” he said. The scheme for forming the export body will be divided into two stages. Stage I will run from 1 June to 31 August 2026, with export companies for natural resource commodities required to transfer their transactions to the state-owned enterprise, and the appointed SOE as export body must transact and contract with all buyers abroad. Stage II, starting 1 September 2026, transactions and contracts with overseas buyers will be carried out entirely by the SOE, and the responsibility and authority to manage exports will also be entirely with the SOE. Prabowo emphasised that all sales of natural resource outputs abroad, from palm oil, coal, iron, to ferroalloys will be centralized. “We will obligate that sales be conducted through the state-owned enterprise designated by the Indonesian government as the sole exporter, meaning that every export output will be forwarded to the government-designated SOE to the business operator managing those activities,” he asserted. Through this new export mechanism, Prabowo believes all fraudulent business practices that have allowed Indonesia’s wealth to leak abroad for 22 years amounting to US$343 billion or around Rp 6,069.04 trillion can be closed, thereby supporting stronger state revenue. Fraud practices that could be closed by the policy include under invoicing, under accounting, transfer pricing, and even evasion of export proceeds (DHE). “Disciples, this policy will optimise tax and state revenue from our natural resource management; with this policy we hope our revenue can be like Mexico, the Philippines, and our neighbouring countries,” Prabowo said. Source on Google [Gambas:Video CNBC]