PALMOILMAGAZINE, JAKARTA – Indonesian President Prabowo Subianto has officially announced a major overhaul of the country’s natural resource export governance system, starting with palm oil as the first commodity to be regulated under the new framework.
The new policy is aimed at tightening oversight of strategic commodity exports, increasing state revenue, and preventing foreign exchange leakages that have long been linked to trade manipulation practices.
Prabowo delivered the announcement during the 19th Plenary Session of the House of Representatives (DPR RI) on the discussion of the 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF), Wednesday (20/5/2026).
In the initial phase, the government will focus on restructuring export governance for three key commodities: palm oil, coal, and ferrous alloy products.
“The Government of the Republic of Indonesia under my leadership will issue a government regulation concerning the governance of natural resource commodity exports,” Prabowo said, as quoted by Palmoilmagazine.com.
According to the President, the regulation is intended to strengthen state control over natural resource trade, which has long been vulnerable to export data manipulation, under-invoicing, transfer pricing schemes, and offshore foreign exchange leakages.
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Exports to Be Supervised Through State-Appointed Enterprises
Under the new scheme, exports of strategic commodities will be conducted through state-owned enterprises (SOEs) appointed by the government to act as single exporters.
The appointed SOEs will function not only as export marketing agencies but also as monitoring entities to ensure all trade transactions are recorded transparently and remain under government supervision.
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“All sales of our natural resource products, beginning with palm oil, coal, and ferrous alloy products, must be conducted through SOEs appointed by the Government of the Republic of Indonesia as single exporters,” Prabowo stated.
The President emphasized that the policy is not intended to take over private sector businesses, but rather to improve monitoring and accountability within Indonesia’s commodity trading system.
The government believes the mechanism is necessary to prevent export underpayment practices and price manipulation that have potentially caused massive state revenue losses over the years.
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Palm Oil Receives Special Attention
During his speech, Prabowo specifically highlighted the palm oil sector as one of the industries most vulnerable to under-invoicing practices and discrepancies in export volume reporting.
Indonesia remains the world’s largest palm oil producer, generating substantial foreign exchange earnings for the national economy. However, the President noted that global palm oil benchmark prices are still largely determined outside Indonesia.
“I do not want our palm oil prices to be determined by other nations. We must determine our own prices,” Prabowo stressed.
The government expects the new regulation to strengthen Indonesia’s bargaining position in global commodity markets while ensuring greater domestic value creation from strategic natural resources.
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Potential to Prevent Massive Foreign Exchange Leakage
Prabowo estimated that losses from illegal practices and manipulation in natural resource trade could reach as much as US$150 billion annually.
For that reason, the government views export governance reform as a critical step toward strengthening national economic sovereignty and ensuring that Indonesia’s natural wealth delivers maximum benefits to its people.
The President also pointed out that similar policies have been implemented in several resource-rich countries, including Saudi Arabia, Russia, Malaysia, and Vietnam.
“We cannot afford to be naive. We must learn from countries that have successfully managed their natural resources for the prosperity of their people,” Prabowo concluded. (P2)
