Prabowo Issues Government Regulation on Strategic Natural Resource Export Governance
President Prabowo Subianto has signed Government Regulation (PP) Number 24 of 2026 concerning the Governance of Strategic Natural Resource Commodity Exports. Established in Jakarta on 20 May 2026, this policy mandates that the export of several commodities must be carried out through State-Owned Enterprises (SOEs) appointed by the government as the sole exporters.
In its considerations, the government determined that regulating the export governance of certain natural resources is necessary to maintain domestic supply stability, national economic resilience, increase value-added, ensure sustainable national development, and utilise natural resources for the greatest prosperity of the people.
Article 2, paragraph (2) states that the determination of strategic natural resource commodities subject to these export regulations will be implemented in stages. In the initial phase, three commodities classified as strategic natural resources include coal, palm oil, and ferroalloys.
“For the subsequent stages, the government will determine other Strategic Natural Resource Commodities through coordination meetings,” reads Article 2, paragraph (4) of PP 24/2026. These coordination meetings will be led by the Coordinating Minister for Economic Affairs for non-food commodities, or the Coordinating Minister for Food Affairs for food commodities.
A prominent provision in this regulation is the designation of state-owned companies, given special assignments by the government, as the only entities permitted to export strategic natural resources. “Strategic natural resource commodities as referred to in Article 2 may only be exported by export SOEs, either as owners or as the sole intermediary,” states Article 3, paragraph (1).
Furthermore, the regulation stipulates that in the execution of these strategic commodity exports, the selling price shall be determined by the designated export SOEs.
Previously, President Prabowo announced the issuance of this regulation regarding the governance of natural resource exports during the Plenary Session of the House of Representatives (DPR) at the Nusantara Building in Senayan, Jakarta, on Wednesday, 20 May 2026.
“The sale of all our natural resource products—starting with palm oil, coal, and ferroalloys—must be conducted through SOEs appointed by the Government of the Republic of Indonesia as the sole exporters. In essence, the proceeds from every export sale will be passed on by the appointed SOE to the business actors managing those activities. This can be described as a marketing facility,” Prabowo stated.