Indonesian Political, Business & Finance News

Prabowo's Rationale for Centralising Natural Resource Exports Through Danantara Subsidiary

| Source: DETIK_BALI Translated from Indonesian | Regulation
Prabowo's Rationale for Centralising Natural Resource Exports Through Danantara Subsidiary
Image: DETIK_BALI

President Prabowo Subianto explained the rationale for implementing a one-stop policy for natural resource exports through PT Danantara Sumberdaya Indonesia (DSI). DSI is a state-owned enterprise (SOE) and a subsidiary of the Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara) Indonesia.

Prabowo stated that the prices of several Indonesian commodities have long been determined by external parties, with a portion of natural resource profits flowing overseas. To address this, the government has regulated the management of natural resource exports to ensure more economic value is retained domestically. The move is also expected to close significant revenue leaks.

“For too long, the prices of our natural wealth have been set by others, abroad. For too long, profits from natural resources have flowed overseas instead of staying in the motherland. Therefore, the government has mandated a single channel for natural resource exports,” Prabowo said during the Pancasila Birthday Ceremony broadcast by the Presidential Secretariat’s YouTube channel on Monday, 1 June 2026.

PT DSI will oversee the management of natural resource commodity exports. Its establishment follows the Government Regulation (PP) on Natural Resource Commodity Export Management through State-Owned Enterprises.

The regulation aims to strengthen export oversight, prevent manipulation practices such as under-invoicing and transfer pricing, and curb foreign exchange leakage. Under this policy, strategic commodities including palm oil, coal, and ferroalloys must be exported via PT DSI.

The government will also strengthen industrial downstreaming and foreign exchange management to ensure the benefits of natural wealth are more widely felt by the Indonesian people. Natural resources are not merely economic commodities but a trust to be managed for the greatest prosperity of the people.

Prabowo added that economic development must not merely produce statistical figures but directly impact citizens’ welfare, from children’s nutrition, fertiliser access for farmers, to decent employment and income for workers.

“Economic development must not only yield statistical figures. It must deliver a better life for all Indonesian citizens,” he stressed.

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