Prabowo Announces! Coal, Palm Oil Exports to Be Controlled by This Body
Jakarta, CNBC Indonesia – President of the Republic of Indonesia Prabowo Subianto emphasised that his administration will form a new body in the form of a Special Export State-Owned Enterprise (BUMN Khusus Ekspor). He made the remark at a DPR RI Plenary Session on Wednesday, 20 May 2026.
The special body will conduct transactions with domestic exporters, after which the government-designated BUMN would export overseas.
“To achieve our national goals today, the government I lead is issuing a Government Regulation on the governance of export of natural resource commodities. The issuing of this Government Regulation is a strategic step to strengthen governance of the export of our natural resource commodities,” Prabowo explained on Wednesday (10/5/2026).
Prabowo disclosed that the sale of all Indonesia’s natural-resource outputs starting from crude palm oil, coal and ferro-alloy iron must be directed through a Special Export BUMN.
“This must be done through a BUMN designated by the Government of the Republic of Indonesia as the sole exporter. In other words, every export of outputs will be channelled by the BUMN designated by the Government to the business actors managing the activity,” he said.
Prabowo stated that the objective of forming the Special Export BUMN can be described as a marketing facility, thereby strengthening oversight and monitoring to eradicate underpayment, under-invoicing, transfer pricing and foreign exchange leakage practices.
“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 neighbouring countries,”
“We do not want our revenue to be the lowest because we are not brave enough to manage our own assets, assets of the nation,” Prabowo asserted.
Draft Regulation on the Governance of Exports of Strategic Natural Resource Commodities via State-Owned Enterprises (presentation by President Prabowo to the DPR)
Phase I: (Export Processing)
From 1 June to 31 August 2026
Companies must redirect their transactions to the BUMN
The BUMN must transact and contract with all foreign buyers
Phase II: (Export Processing)
From 1 September 2026
Transactions and contracts with foreign buyers -> entirely the BUMN
The responsibility and authority of export management -> BUMN
The following are the clauses of the draft regulation on the Special Export State-Owned Enterprise regarding the “Governance of Exports of Strategic Resource Commodities”.
CHAPTER I
GENERAL PROVISIONS
Article 1
In this Government Regulation, the following definitions apply:
Export means the activity of taking goods out of the Indonesian customs area.
Strategic Natural Resource Commodities are natural resource commodities designated by the Government with regard to national interests, economic stability, domestic needs, and/or management of strategic national resources.
State-Owned Enterprise, hereinafter abbreviated as BUMN, is an entity whose capital is wholly or partly owned by the State of Indonesia through direct participation, or which has special rights granted to the State.
Export State-Owned Enterprise, hereinafter referred to as BUMN Ekspor, is a BUMN that has been assigned a special mandate by the Government to carry out export activities of Strategic Natural Resource Commodities.
CHAPTER II
DETERMINATION OF STRATEGIC NATURAL RESOURCE COMMODITIES
Article 2
- Strategic Natural Resource Commodities under this export governance cover:
coal;
crude palm oil; and
other Strategic Natural Resource Commodities.
- The Government may amend 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)(c) through a coordination meeting chaired by:
the minister responsible for synchronising and coordinating and controlling governmental affairs relating to economic affairs; or
the minister responsible for synchronising and coordinating and controlling government affairs in the field of food,
attended by ministers/head of non-ministerial government institutions.
- The designation of changes to Strategic Natural Resource Commodities and other Strategic Natural Resource Commodities as referred to in paragraph (2) shall be set in a ministerial regulation dealing with trade affairs.
CHAPTER III
EXPORT GOVERNANCE
Article 3
Strategic Natural Resource Commodities as referred to in Article 2 may only be exported by Export BUMN.
The Export BUMN as referred to in paragraph (1) shall be designated in accordance with the provisions of laws and regulations in the field of BUMN.
Article 4
- The governance of Export of Strategic Natural Resource Commodities as referred to in Article 2 may be undertaken through:
export control; and/or
other mechanisms in accordance with the provisions of laws and regulations.
- Further provisions on the governance of the Export 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
MENTORING AND SUPERVISION
Article 5
Mentoring and supervision of the implementation of the governance of the 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
When this Government Regulation comes into force:
the Export of Strategic Natural Resource Commodities as referred to in Article 2 may only be conducted through Export BUMN until 31 December 2026.
After 31 December 2026, Export of Strategic Natural Resource Commodities as referred to in Article 2 may only be conducted by Export BUMN.
In the event that the implementation of Export of Strategic Natural Resource Commodities as referred to in Article 2 has been fully transferred