ASIATODAY.ID, JAKARTA — Indonesia has officially launched a sweeping overhaul of its natural resource export system after President Prabowo Subianto signed Government Regulation (PP) No. 24/2026 on the Governance of Strategic Natural Resource Exports, creating a single-state gateway for the overseas sale of key commodities.
The regulation, signed on May 20 and effective from June 1, marks one of the most significant interventions in Indonesia’s commodity trade sector in decades. Under the new framework, exports of coal, palm oil, and ferro alloys—the first three commodities designated as strategic natural resources—will be managed through a specially appointed state-owned enterprise.
The government has assigned PT Danantara Sumberdaya Indonesia (DSI) as the dedicated state export agency responsible for handling exports of the three commodities, either as the owner of the goods or as the sole intermediary.
The move is part of Jakarta’s broader effort to strengthen state control over strategic resources, improve export governance, stabilize commodity markets, and maximize national economic benefits from Indonesia’s vast natural wealth.
According to the regulation, strategic natural resource commodities can only be exported through the designated state exporter. The appointed company will also have the authority to determine export selling prices and apply commercially reasonable margins in accordance with prevailing regulations.
For the initial phase, the strategic commodity list includes: Coal, Palm oil, Ferro alloys (iron-based alloys used in the steel industry).
The government also retains the authority to expand the list to other strategic commodities through future inter-ministerial coordination meetings.
The regulation provides several mechanisms for managing exports, including export controls, technical verification and tracing systems, shipping and insurance arrangements, and other measures deemed necessary under Indonesian law.
However, certain companies may be exempted from the single-gateway requirement if they hold existing agreements with the government that include substantial commitments related to investment, divestment, and domestic processing or refining activities.
A transition period has been established to allow exporters to adjust to the new system. Existing exports of the designated commodities must be transferred to the state-controlled export mechanism no later than December 31, 2026, although the government retains the authority to accelerate or modify the deadline following periodic evaluations.
The regulation also requires the state exporter to review all commodity sales contracts signed before June 1, 2026, that remain in force.
The policy underscores President Prabowo’s determination to ensure that Indonesia’s strategic resources generate greater value for the national economy, while giving the government stronger oversight of export flows in sectors that contribute billions of dollars annually to state revenues and foreign exchange earnings.
Beginning in 2027, exports of coal, palm oil, and ferro alloys are expected to operate fully under the new centralized framework, potentially reshaping Indonesia’s role in global commodity markets and altering how international buyers access some of the world’s most important resource supplies. (AT Network)
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