Indonesia will require exports of several key natural resource commodities to be conducted through state-owned enterprises under a new regulation aimed at strengthening oversight and increasing state control over export revenues, President Prabowo Subianto announced on Tuesday.
Speaking at the parliament complex in Jakarta, Prabowo said the policy would take effect from June 1 and apply to strategic exports including palm oil, coal and ferroalloys.
“All exports of strategic natural resources must go through state-owned enterprises appointed by the government,” the president said.
The measure forms part of a broader effort by the Indonesian government to tighten governance in the commodities sector and address long-standing concerns over revenue leakages.
Prabowo said the regulation was designed to improve transparency and curb practices such as under-invoicing and transfer pricing, which authorities say have resulted in substantial losses to the state over many years.
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According to the president, export transactions covered by the policy will be centrally monitored and recorded through designated state firms in order to improve accountability and oversight.
Indonesia is one of the world’s largest producers and exporters of commodities including coal, palm oil and nickel, sectors that play a critical role in the country’s economy and export earnings.
However, officials have increasingly argued that weak supervision and limited downstream processing have reduced the broader economic benefits generated by the country’s vast natural resources.
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Prabowo linked the new policy to his administration’s wider industrialisation agenda, which emphasises greater domestic processing of raw materials and stronger state participation in strategic sectors.
Indonesia has in recent years pursued aggressive downstream industrial policies, particularly in the nickel industry, where export restrictions on raw ore were introduced to encourage domestic refining and manufacturing investment.
The government argues that such policies are necessary to move the economy up the value chain, create jobs and strengthen national control over strategic industries.
“This is not some strange policy,” Prabowo said. “Many countries protect their national interests and manage their strategic commodities carefully.”
Analysts say the latest move could further reshape Indonesia’s commodity export system and potentially increase state influence over trade flows, though some industry participants may raise concerns about operational efficiency and market competitiveness.
The announcement also reflects a broader trend among resource-rich countries seeking greater control over critical commodities amid heightened global competition for energy and industrial raw materials.
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Indonesia’s commodities sector has become increasingly important in global supply chains, particularly for energy markets and electric vehicle manufacturing, where nickel and related minerals are in high demand.
