Prabowo Forms a Special Export State-Owned Enterprise, Here Is the Scheme

Jakarta — President Prabowo Subianto announced in a plenary session of the Indonesian House of Representatives on Wednesday 20 May 2026 that he would establish a Special Export State-Owned Enterprise (BUMN Ekspor). With this body, export activities by exporters of coal, palm oil and other minerals would be fully conducted by the Special Export SOE. ‘To achieve our national goals today, the government I lead has issued a Regulation (PP) on the governance of the export of natural resource assets,’ Prabowo said, referring to the May 2026 regulation. ‘This PP is a strategic step to strengthen governance over the export of our natural resources.’ Prabowo explained that the sale of all Indonesia’s natural resource outputs — from palm oil, coal, to ferro-alloy iron — must be conducted through the Special Export SOE designated by the government as the sole exporter. ‘Exports must be routed through the government-appointed export monopoly. In other words, every export is forwarded by the government-designated BUMN to the relevant business operator,’ he said. He described the move as a marketing facility that will enhance oversight and monitoring to root out under-invoicing, transfer pricing and evasion of export proceeds. ‘This policy will optimise tax revenue and overall government revenue from our natural resources; with this policy we hope to achieve revenue levels like Mexico, the Philippines and neighbouring countries,’ he said. ‘We do not want our receipts to be the lowest simply because we fail to manage our own assets, the property of our nation.’ Draft PP on Governance of Export of Strategic Natural Resource Commodities via BUMN Chapter I General Provisions Article 1 In this Government Regulation, the following terms mean: 1. Export means the activity of taking goods out of Indonesian customs territory. 2. Strategic Natural Resource Commodities are natural resource commodities designated by the Government considering national interests, economic stability, domestic needs, and/or the management of strategic national resources. 3. State-Owned Enterprise, abbreviated as BUMN, means an enterprise wholly or partially owned by the State of the Republic of Indonesia through direct participation or where the State holds special rights. 4. Export-Only State-Owned Enterprise, hereinafter referred to as BUMN Ekspor, is a BUMN appointed 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 governed by Export are: a. coal; b. palm oil; and c. other Strategic Natural Resource Commodities. (2) The Government may change the Strategic Natural Resource Commodities as referred to in paragraph (1)(a) and (b) and designate other Strategic Natural Resource Commodities as referred to in paragraph (1)(c) through a coordination meeting led by: a. the minister responsible for synchronisation and coordination and control of the government’s economic affairs; or b. the minister responsible for synchronisation and coordination of affairs in the field of agriculture, attended by the minister/head of non-ministry government agencies. (3) 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 regulated in a ministerial regulation handling trade. Chapter III Export Governance Article 3 (1) The Strategic Natural Resource Commodities referred to in Article 2 can only be exported by a BUMN Ekspor. (2) A BUMN Ekspor as referred to in paragraph (1) is designated in accordance with the rules of law in the field of BUMN. Article 4 (1) Governance of Export of Strategic Natural Resource Commodities as referred to in Article 2 may be conducted through: a. export controls; and/or b. other mechanisms in accordance with applicable laws. (2) Further provisions on the governance of Export of Strategic Natural Resource Commodities as referred to in paragraph (1) shall be set by the relevant ministers/head of non-ministry government agencies according to their authority. Chapter IV Supervision and Guidance Article 5 Supervision and oversight of the implementation of Governance of Export of Strategic Natural Resource Commodities shall be carried out by the relevant ministers/heads of non-ministry government agencies according to their authority. Chapter V Transitional Provisions Article 6 Upon the entry into force of this Government Regulation: a. Export of Strategic Natural Resource Commodities as referred to in Article 2 may only be performed through the BUMN Ekspor until 31 December 2026. b. Exports after 31 December 2026 can only be conducted by the BUMN Ekspor. c. If the implementation of Export of Strategic Natural Resource Commodities as referred to in Article 2 has been fully transferred to the BUMN Ekspor before 31 December 2026, export of Strategic Natural Resource Commodities continues…