Prabowo: Curb Coal and CPO Exports, Prioritise Domestic Needs
President Prabowo Subianto has instructed coal and crude palm oil (CPO) producers to withhold commodity exports until domestic requirements are fully satisfied. The directive was conveyed during a plenary cabinet session at the State Palace in Jakarta on Friday, 13 March.
In his guidance, Prabowo emphasised that coal and other strategic commodity production must be prioritised to meet national needs before being marketed abroad. According to him, natural resource management must fully serve the interests of the Indonesian people.
“All coal production is prioritised for our national needs. This also applies to other commodities, including palm oil,” the President stated.
Prabowo stressed that Indonesia’s natural wealth belongs to the nation and must be utilised extensively for public welfare. He reminded that although entrepreneurs are permitted to conduct business activities, ownership of natural resources remains vested in the state.
“All natural wealth belongs to the Indonesian nation. Entrepreneurs may operate, but ownership remains with the nation,” he said.
On the same occasion, the President also instructed Bahlil Lahadalia, the Minister of Energy and Mineral Resources (ESDM), to take a firm stance towards coal companies, emphasising that exports should not be conducted if domestic requirements have not been met.
In response to the directive, Bahlil explained that the Government continues to ensure coal availability for domestic needs through the Domestic Market Obligation (DMO) policy and export controls.
According to him, coal companies that have obtained a Work Plan and Budget (RKAB) are obligated to fulfil DMO allocations first. Should this obligation not be met, the Government will not issue export permits.
“If national needs are not satisfied, we will not issue export permits. Our orientation is domestic needs,” Bahlil stated.
Additionally, the Government is preparing a ministerial decision policy that ensures all national coal production is initially allocated for domestic needs. Once domestic requirements are met, remaining production can be exported to the global market.
This policy forms part of the Government’s strategy to strengthen national energy security whilst ensuring optimal utilisation of natural resources for the nation’s interest.