What commodities will be subject to Indonesia's new state-controlled export system, and what is the stated rationale?

Prabowo announced that the government will require palm oil, coal, and ferroalloys to be exported exclusively through a newly appointed state company. The stated rationale is to address 'under-invoicing and under-accounting' in exports, which he claimed has caused 'hundreds of billions of dollars in losses' due to the gap between reported and actual export values, and to assert national control over pricing—particularly highlighting the anomaly that 'Indonesia is the world’s largest palm oil producer, yet palm oil prices are determined by other countries.'

How does Prabowo link this export policy shift to his broader domestic agenda and fiscal challenges?

Prabowo framed the new state export agency as his 'most drastic move yet to shore up state revenue' to fund expensive flagship policies, specifically naming a free meals program for more than 80 million people and plans to establish thousands of new cooperatives across Indonesia—initiatives being pursued amid 'mounting fiscal pressures,' a 'plunging rupiah,' higher energy prices, and concerns over shrinking middle-class share and rising poverty despite ~5% average annual economic growth over the past seven years.

Prabowo to Tighten Control of Indonesia’s Commodity Exports

May 19, 2026

Indonesia's President Prabowo plans to mandate state-controlled exports for commodities like palm oil and coal to boost revenue, causing palm oil futures to jump 2%. The policy aims to curb under-invoicing but raises governance concerns.

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