Prabowo Issues Government Regulation: Palm Oil to Coal Exports Must Be Routed Through State-Owned Enterprises

JAKARTA, KOMPAS.com - Indonesian President Prabowo Subianto announced that he had issued Government Regulation (PP) on the Governance of Exports of Natural Resource Commodities. Prabowo explained that the regulation provides that exports of Indonesia’s natural resource commodities, such as palm oil up to coal, must pass through a State-Owned Enterprise (BUMN) as the sole exporter. ‘Today, the Government of the Republic of Indonesia, which I lead, has issued a Government Regulation on the Governance of Exports of Natural Resource Commodities,’ Prabowo said at the DPR building, Senayan, Jakarta, on Wednesday (20 May 2026). ‘The issuance of this Government Regulation is a strategic step to strengthen the governance of export of our natural resource commodities. The sale of all our natural resource products, starting with palm oil, coal, and iron alloys, must be conducted through a BUMN designated by the Government of the Republic of Indonesia as the sole exporter,’ he said. Prabowo said that this PP aims to strengthen oversight and monitoring of export activities in Indonesia. ‘In other words, the proceeds from each export sale will be passed on by the BUMN designated by the Government to the business operators managing those activities. This can be described as a marketing facility,’ Prabowo added.