What commodities will be subject to centralized government export control under President Prabowo's new regulation?

According to the news, key exports like palm oil and coal will in future be sold exclusively through a central government-run state-owned enterprise (SOE), as President Prabowo stated: 'All sales of our resources, from palm oil, coal must be through a SOE selected by the government...as sole exporters.'

What is the stated rationale behind Indonesia's plan to centralize commodity exports?

President Prabowo said the move aims to boost state revenues and tighten government control over natural resources, citing a loss of up to $908 billion in revenues over the past 34 years due to commodities being sold 'on the cheap'; he also linked the policy to constitutional principles, stating that 'the earth, water and all the resources within it must be enjoyed by all Indonesians,' and identified under-invoicing and transfer pricing by private exporters as key concerns the regulation seeks to address.

Indonesia to Centralize Commodity Exports Under Government Control, President Says

May 19, 2026

Indonesian President Prabowo Subianto announced plans to centralize exports of key commodities like palm oil and coal through a state-owned enterprise to boost state revenues. The policy shift has triggered market volatility due to concerns over pricing mechanisms and trader margins.

reuters

2026-05-19

Indonesia to Centralize Commodity Exports Under Government Control, President Says

2026-05-20

Indonesia Mandates State Agency Control Over Key Commodity Exports

Indonesia to Centralize Commodity Exports Under Government Control, President Says

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