Indonesian president Prabowo Subianto has introduced a policy requiring exports of strategic commodities to be channeled through state-owned enterprises.
The eighth president of the Republic of Indonesia issued a government regulation (PP) on the governance of natural resource (SDA) commodity exports, mandating that several strategic commodities -- ranging from palm oil and coal to ferroalloys -- be sold through state-owned enterprises as the sole exporters. The policy marks a new government initiative to strengthen Indonesia's control over the trade chain for strategic commodities in global markets.
Prabowo announced the measure on Wednesday (May 20, 2026) while delivering the 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) at the Senayan parliament building in Jakarta. He stated that the policy aims to improve the governance of what he described as fragmented commodity exports.
Prabowo said the mechanism will enhance oversight and supervision of national export activities. The policy will be implemented through PT Danantara Sumber Daya Indonesia (DSI), a new company established under Danantara Indonesia.
Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed at a press conference at the parliament building that the Minister of Investment and Head of the Investment Coordinating Board (BKPM) has officially formed DSI. Minister of Investment and Downstream Industry, who also serves as CEO of Danantara, Rosan Roeslani, further explained that DSI was set up to improve the governance of national strategic commodity exports and increase transparency and compliance in the process. The government believes that Indonesia has long suffered from under-invoicing and transfer pricing in commodity trade, which urgently needs to be addressed through a unified export channel.
According to the government's plan, DSI's full operation will be rolled out in phases, with the target of having all export processes for strategic natural resource commodities managed by DSI starting September 1, 2026. By then, the entire export chain -- including transaction negotiations, contract signing, goods delivery, and payment settlement -- will be conducted through Danantara Sumber Indonesia. Airlangga emphasized that the policy applies not only to fuel oil, coal, and ferroalloys but will also be extended to all other strategic natural resource commodities in the future.
Written by Cora Ji, jiruyan@mysteel.com
