UPN Veteran Jakarta economist warns against exporting commodities through state-owned enterprises
UPN Veteran Jakarta economist Achmad Nur Hidayat has warned about the government’s plan to require that exports of strategic commodities go through state-owned enterprises (BUMN). He stressed that the policy must be implemented transparently and accountably, because, in his view, it risks creating a new rent-seeking source if the state forms a trading monopoly without strong oversight.
The economist argued that the single-window export idea has emerged because the government wants to curb under-invoicing, transfer pricing, and the leakage of export proceeds which have been blamed for suboptimal state revenue. He noted that the value of exports of strategic commodities such as palm oil, coal, and ferro alloys amounts to more than US$65 billion, or about Rp 1,100 trillion, per year.
He said the core problem for Indonesia is not a shortage of natural resources but the state’s weak ability to capture the economic value of commodity exports. Practices of selling at low prices on paper and reselling abroad at market prices mean profits, taxes, and foreign exchange do not fully accrue to Indonesia.
Nevertheless, Achmad argued, the single-window export could have benefits, as it would simplify government oversight of transactions and strengthen Indonesia’s bargaining position in the global market.
However, he emphasised that the appointed BUMN must be capable of acting as a world-class trading house, not merely adding bureaucratic layers to the export chain. He reminded that global commodity trade involves long-term contracts, trading reputation, delivery schedules, and exchange-rate risk.
Therefore, Achmad continued, if governance is not prepared, the policy could impede exports, trap foreign exchange inflows, and depress the rupiah. The effects could be felt all the way down to businesses, mining workers, and palm oil farmers in commodity-producing regions.
‘If foreign exchange is trapped, the rupiah could come under pressure. If payments to business operators are delayed, the impact could cascade to palm oil farmers, mining workers, and the regions that produce commodities,’ Achmad said.
President Prabowo Subianto said the government would require that exports of certain strategic natural resources be conducted through designated state-owned enterprises appointed as sole exporters. The commodities initially covered would include palm oil, coal, and ferro-alloys.
In his speech at the Parliament’s Plenary Session on the Macro-Economic Framework and the Main Policy of the 2027 RAPBN, on Wednesday 20 May 2026, Prabowo said the policy aims to strengthen export oversight while also curbing under-invoicing, transfer pricing, and the leakage of export proceeds.
‘The sale of all our natural resource outputs will begin with palm oil, coal, and ferro-alloys, and we will require that their sales go through state-owned enterprises designated by the Government of Indonesia as the sole exporters,’ Prabowo said on Wednesday 20 May 2026.
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