Transition Schedule for Palm Oil Export Regulation: Exports Must Be Routed Exclusively Through Danantara
Jakarta, CNBC Indonesia - Trade Minister (Mendag) Budi Santoso said that a new Minister of Trade Regulation (Permendag) concerning the governance of natural resource exports is being prepared. He said the Permendag would be completed no later than tomorrow, with all technical provisions expected to be in place today.
He told reporters at the Coordinating Ministry for Economic Affairs’ office, Jakarta, on Thursday 21 May 2026.
Budi emphasised that under the new regime for the governance of natural resource exports, the policy requiring domestic market obligations (DMO) remains in force. Currently, the DMO applies to the export of palm oil and coal.
So when will this policy take effect?
Quoting the materials from the Ministry of Trade (Kemendag) in the Limited Coordinating Meeting at Ministerial Level on the Economy: Discussion on the Governance of Strategic Natural Resource Exports, Thursday 21 May 2026, the new Permendag will eventually revoke Permendag No 26/2024 on the Provisions for Palm Oil Derivatives Exports.
It is planned that the new Permendag will take effect on 1 June 2026.
The main provisions of the draft Permendag on palm oil export provisions include the definition of export state-owned enterprises (BUMN ekspor), provisions regulating palm oil exports as a strategic natural resource and that exports can only be conducted by exporters that have an export BUMN, transitional provisions, provisions for full effectiveness, and the duration of the new Permendag.
Transition Period for the New Palm Oil Trade Regulation:
- Transitional provisions from 1 June to 31 August 2026
During this period:
Business licences in the form of Export Approvals already issued to operators remain valid until 31 August 2026
Export Approvals applied for by operators between 1 June and 31 August 2026 will be issued with a validity period up to 31 August 2026
Exports are conducted through the Export State-Owned Enterprise
Using the Export Approval belonging to the operator
Exporter in the name of PT Danantara Sumber Daya Indonesia; and
In the Bill of Entry (PEB), the operator is listed as the owner of the goods, the Export State-Owned Enterprise as the Exporter
- During the transitional period, the Export State-Owned Enterprise should prepare the administrative readiness of export documents to be implemented on 1 September 2026.
Full Implementation Schedule
- Provisions come into effect on 1 September 2026
Exports may only be conducted by the Export State-Owned Enterprise
The Export State-Owned Enterprise must hold an Export Approval with the Export Rights
The Export Rights of the Export State-Owned Enterprise are obtained from the DMO results or from the transfer of Export Rights by an operator implementing the DMO.
New Order from Prabowo
President Prabowo Subianto has mandated that all exports of natural resources must pass through a single gate. He said this policy aims to control and monitor where and how much of Indonesia’s natural resource outputs are sold.
Export commodities affected by this policy are palm oil, coal, and ferroalloys (iron alloys).
This was disclosed when President Prabowo delivered the President’s Speech at the 19th Plenary Session of the Indonesian House of Representatives regarding KEM and PPKF RAPBN 2027 in the 19th Plenary Session of the DPR RI in the Nusantara Building MPR/DPR/DPD-RI, Jakarta, Wednesday, 20 May 2026.
During the occasion, Prabowo announced the issuance of a new Government Regulation (PP) and the formation of a new state-owned enterprise dedicated to commodity exports.
With this new PP, Prabowo stated, all sales of all natural resource outputs, from palm oil and coal to ferroalloys, must go through the state-owned enterprise designated by the Indonesian government.
The new state-owned enterprise is named PT Danantara Sumberdaya Indonesia.