President Announces Formation of Export Authority

Jakarta – President of the Republic of Indonesia, Prabowo Subianto, has announced that a Government Regulation (PP) on the Governance of Exports of Natural Resource Commodities has been issued. With the enactment of this regulation, a dedicated export body has been formed.

‘The issuance of this PP is a strategic step to strengthen the governance of export of our natural resource commodities. The sale of all our natural resource outputs will begin with palm kernel oil, coal, and iron alloys, and must be conducted through a state-owned enterprise designated by the Government of the Republic of Indonesia as the sole exporter,’ Prabowo said during a plenary session at the DPR complex, Jakarta, on Wednesday (20 May 2026).

He explained that under the single exporter body, each export sale will be handled by the government-designated state-owned enterprise for the export activities.

‘This can be described as a marketing facility. The principal aim of this policy is to strengthen oversight and monitoring and to root out underpayment or underinvoicing, transfer pricing manipulation, and the flight of export proceeds,’ he added.

Prabowo said the move would optimise tax revenue and state income from the management of natural resource commodities. He noted that with this policy, Indonesia’s receipts could be comparable to those of Mexico, the Philippines, and several neighbouring countries.

‘We do not want our revenue to be the lowest because we do not have the courage to manage our own national wealth. All Indonesian natural resources belong to the Indonesian people, and the state has the right to know in detail what is being sold overseas. We do not want to be deceived again; we want to know exactly how much of our wealth is sold,’ he continued.

Prabowo revealed that through the new policy, the Export Agency, the national treasury is projected to secure potential revenue of up to 150 billion US dollars per year, equivalent to Rp2,653.92 trillion at an exchange rate of Rp17,692 per US dollar.

‘We calculated, we estimate the amount of money that could be saved from leaks at 150 billion US dollars a year. The potential is there. Whether we can achieve it depends on our courage, determination, and whether we can work well together or not,’ he said.