Indonesia unveils regulation on export centralisation for strategic commodities, government website shows
Indonesia has announced a new regulation to centralize the export of key strategic commodities through a state-owned enterprise, according to a government statement and multiple reports. The move, outlined by President Prabowo Subianto during a parliamentary address, aims to strengthen oversight of the country’s natural resources and increase state revenue by addressing issues such as under-invoicing and transfer pricing by private exporters.
The new entity, PT Danantara Sumberdaya Indonesia, will initially manage exports of coal, palm oil, and nickel—commodities in which Indonesia is a global leader. The company is 99% owned by Danantara, the sovereign wealth fund established by the president in February 2025. The government has set a timeline for implementation, with transfer export operations by September 2026.
The policy has already triggered market concerns, with Jakarta’s main stock index dropping 3.5% on May 19, 2026, as traders and investors reacted to the potential impact on pricing mechanisms and profit margins. The government has emphasized that the centralization of exports is intended to ensure transparency and accountability in the management of Indonesia’s natural resources, aligning with constitutional principles.
The regulation also includes a requirement for all natural resource exporters to deposit revenues in state-owned banks starting June 1, 2026, a measure aimed at stabilizing the rupiah amid recent depreciation. The currency has fallen more than 14% since Prabowo took office in October 2024, reaching levels not seen since the 1997–1998 Asian financial crisis.
International stakeholders, including Chinese and Japanese business groups, have expressed concerns over the policy’s potential to disrupt trade and investment. The China Chamber of Commerce in Indonesia recently highlighted “excessively stringent regulation and over-enforcement” as challenges for foreign investors. Meanwhile, analysts suggest the move could shift the balance of power in global commodity markets, particularly as Indonesia seeks to reduce reliance on Chinese investment and attract alternatives such as U.S. firms.
The government has not yet finalized all regulatory details, and the Trade Ministry has stated it is not publicly aware of the plan. However, the swift implementation timeline and the scale of the policy shift underscore the administration’s commitment to reshaping Indonesia’s economic strategy.
