Prabowo Issues Government Regulation on Export Governance, Natural Resource Exports to Be Routed Through State-Owned Enterprises

JAKARTA — President Prabowo Subianto issued a Government Regulation (PP) on the Governance of Export of Natural Resource Commodities. The PP will require that sales of natural resources (SDA) such as palm oil and coal be conducted through government-designated state-owned enterprises (BUMN). ‘Issuing this government regulation is a strategic step to strengthen the governance of export of our natural resource commodities,’ Prabowo said in a speech at the plenary meeting delivering the Macro Economic Framework (KEM) and the Core Policies/Policy Package for Fiscal (PPKF) RAPBN 2027, on Wednesday, 20 May 2026. In due course, export proceeds will be shared by the BUMN with the traders who supply the commodities. The government hopes the PP will curb transfer pricing, and prevent the outflow of export proceeds to overseas. Prabowo also hopes that the governance policy for these commodities will boost national revenue. ‘We do not want our revenues to be the lowest because we are not brave enough to manage our own assets, our nation’s assets,’ he added. Meanwhile at the Parliament Complex, Prabowo has reportedly formed a specialised export-focused state-owned enterprise named PT Danantara Sumber Daya Indonesia. ‘The Investment Minister/Head of BKPM has formed what is called PT Danantara Sumber Daya Indonesia. More details will follow,’ Airlangga said at a press conference at the Parliament Complex, Jakarta, on Wednesday. ‘Over a long period, in presidential data, World Bank shows high levels of under invoicing and transfer pricing,’ Rosan explained.