President Prabowo Subianto has announced plans to issue a new government regulation granting PT Danantara Sumberdaya Indonesia (DSI) authority to oversee the export governance of several of Indonesia’s strategic commodities, including coal, crude palm oil (CPO), and ferro alloy products.
The policy marks one of the most ambitious state interventions in Indonesia’s commodity export sector in recent years, with the government arguing that tighter centralized oversight is necessary to combat transfer pricing practices and prevent the outflow of export foreign exchange earnings.
Prabowo revealed the plan during a plenary session at the House of Representatives discussing the macroeconomic framework and fiscal policy direction for the 2027 state budget.
According to the president, the upcoming regulation will establish a single export management mechanism in which state-owned enterprises play a dominant role in handling the overseas sale of key natural resource commodities.
“We will begin with palm oil, coal and iron-related products. The sales process must be conducted through state-owned enterprises acting as a single export bank,” Prabowo said during the parliamentary session.
He described the initiative as a “marketing facility” designed to strengthen state control over strategic exports while reducing opportunities for manipulation of export prices and offshore capital transfers.
Prabowo argued that the policy aligns with Article 33 of the 1945 Constitution, which emphasizes state control over strategic sectors and rejects excessive concentration of economic power under conglomerates or capitalist monopolies.
The president also claimed that Indonesia could potentially secure as much as US$150 billion annually in state revenue leakages through tighter supervision of commodity exports.
Under the proposed framework, PT Danantara Sumberdaya Indonesia would become responsible for monitoring export shipment volumes, pricing mechanisms, overseas contracts and transaction structures involving strategic commodities.
The government plans to implement the policy gradually in multiple phases beginning June 1, 2026.
During the first phase, exporters of strategic natural resource commodities will be required to comprehensively report all export transactions to DSI.
Authorities will then evaluate whether export prices align with prevailing international market benchmarks and determine whether transactions reflect fair pricing standards.
The reporting requirement is expected to serve as the foundation for a broader state-controlled export management system scheduled for full implementation later this year.
The second phase is planned to begin on September 1, 2026, when exporters would be required to formally conduct exports through DSI.
Prabowo said the government will review the implementation every three months throughout the transition process to evaluate operational effectiveness and market impact.
The government also plans to activate a dedicated digital trading platform managed by Danantara beginning January 2027 to facilitate strategic commodity export transactions.
Officials say the digital platform will become the primary channel for export documentation, transaction reporting and coordination between exporters, buyers and state-owned entities.
The transition period from June through August 2026 will involve three stages: pre-clearance, clearance and post-clearance.
During the pre-clearance stage, private companies will still manage most export procedures independently while adapting to the new reporting requirements and oversight mechanisms.
The clearance stage will gradually introduce participation from state-owned enterprises into export administration and transaction processes.
Meanwhile, the post-clearance stage is intended to prepare exporters and government agencies for full operational transfer to the new state-managed framework.
Throughout the transition period, private exporters will be required to begin shifting export transactions toward coordination with state-owned enterprises.
At the same time, state-owned enterprises will prepare export contracts, transaction systems and commercial arrangements with overseas buyers ahead of full implementation.
Beginning September 1, 2026, the government intends to fully implement the centralized export governance system.
At that stage, all export processes — including pre-clearance, clearance and post-clearance procedures — will be conducted through business-to-business arrangements between private companies and state-owned enterprises.
The government stated that all export-import transactions involving foreign buyers and domestic commodity exporters will ultimately be executed through state-owned enterprises acting as official export intermediaries.
Responsibility for export administration, transaction management and contract execution with overseas buyers will also shift entirely to the state-controlled entities.
Indonesia’s Ministry of Trade is currently preparing several ministerial regulations that will serve as technical guidelines for the policy.
According to presentation materials discussed during a coordinating meeting at the Office of the Coordinating Ministry for Economic Affairs, the ministry plans to issue three separate trade minister regulations governing the implementation of single-gateway exports through DSI.
Each regulation will focus on a specific strategic commodity category, namely coal, crude palm oil and ferro alloy products.
The government has framed the initiative as part of a broader effort to strengthen national economic sovereignty and improve transparency within Indonesia’s commodity trade sector.
Officials believe the system could help reduce underreporting of export values and minimize the use of transfer pricing schemes that allegedly reduce taxable revenues.
Transfer pricing has long been a concern in Indonesia’s commodity industries, particularly in sectors involving multinational corporations and complex international supply chains.
Authorities have repeatedly accused some exporters of selling commodities to affiliated offshore entities at artificially low prices before reselling them internationally at higher market values.
Such practices can reduce domestic tax obligations and limit the amount of export earnings repatriated into Indonesia’s financial system.
By centralizing export oversight through state-owned enterprises, the government hopes to gain greater visibility into commodity trading flows and improve monitoring of export proceeds.
The proposal, however, has already sparked concerns among industry participants and analysts who warn that excessive state intervention could disrupt export efficiency and create additional bureaucracy.
Business groups are expected to closely monitor the details of the implementing regulations, particularly regarding pricing flexibility, contract mechanisms and operational responsibilities between private exporters and state-owned entities.
Indonesia remains one of the world’s largest exporters of coal and palm oil, while ferro alloy products represent an increasingly important component of the country’s downstream mineral processing ambitions.
Coal exports continue to contribute significantly to Indonesia’s trade surplus and fiscal revenues, especially during periods of elevated global energy prices.
Palm oil also remains one of Indonesia’s most strategic export commodities, supporting millions of workers and generating substantial foreign exchange income.
Meanwhile, ferro alloy products have become increasingly important following Indonesia’s aggressive downstream mineral industrialization policies.
The government has prioritized domestic processing of nickel and other mineral resources to increase value-added exports and reduce reliance on raw commodity shipments.
Prabowo’s administration appears determined to expand state oversight across those sectors as part of a broader economic restructuring agenda.
The new export framework also reflects growing resource nationalism trends across several commodity-producing countries seeking greater control over strategic industries.
Supporters of the policy argue that stronger state supervision could help Indonesia maximize export revenues while ensuring more foreign exchange earnings remain within the domestic economy.
Critics, however, warn that implementation risks remain significant, especially if administrative systems are not fully prepared before the transition deadlines.
Questions also remain regarding how DSI will coordinate with private exporters, shipping companies, banks and international buyers under the centralized framework.
The government has not yet released detailed operational procedures regarding pricing negotiations, foreign exchange settlement or dispute resolution mechanisms.
Despite those uncertainties, the administration insists the transition will proceed gradually to minimize disruption to commodity exports and international trade flows.
The policy represents one of the clearest signals yet that Prabowo intends to strengthen state involvement in Indonesia’s strategic economic sectors while reshaping the country’s commodity export governance system.
