Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has announced that the new governance regulations for natural resource exports will be implemented as soon as possible. The policy, introduced by President Prabowo Subianto at the House of Representatives (DPR) on Wednesday (20/5), mandates that exports of three primary commodities—palm oil, coal, and ferroalloys—be centralized under state-owned enterprises (BUMN).
Speaking at the 50th IPA CONVEX in Tangerang, Banten, Bahlil emphasized the urgency of this transition. “We aim to implement this within the year, certainly before the second half of 2026. If it can be done sooner, that would be even better,” he stated.
The government plans to designate specific state-owned entities to oversee these exports, followed by a rigorous process of transaction consolidation and reconciliation. Bahlil asserted that this oversight mechanism is designed to eliminate prevalent industry issues such as under-invoicing and transfer pricing.
Strategic Implementation Through Danantara
While the long-term vision involves channeling all mineral exports through the newly formed sovereign wealth fund, Danantara, the initial phase will focus strictly on coal and ferroalloys. “We will start with those two commodities first while we continue to adjust our approach for other minerals,” Bahlil explained.
He reassured business owners and market participants that the policy is not intended to disrupt existing trade flows. Contracts already in place for international transactions will continue to be honored. The mandate applies specifically to future transactions, which will require synchronization and data integration with the designated BUMN.
“The international markets for these businesses will remain operational. The goal is not to immediately disrupt existing sales channels but to ensure that data synchronization and communication between private enterprises and BUMNs are seamless,” he added.
Strengthening National Revenue
President Prabowo Subianto previously outlined that the revenue generated from these exports will be managed and processed by the appointed state-owned entities before being distributed to the businesses. The primary objective is to enhance monitoring capabilities and curb illicit practices such as the illegal flight of export earnings.
Prabowo expressed confidence that this policy will optimize tax collection and state revenue from natural resources. “Through this policy, we hope to elevate our state revenue performance to levels comparable to Mexico, the Philippines, and our other neighbors,” the President remarked during the plenary session at the DPR.
In alignment with this mandate, the Danantara Indonesia Investment Management Agency has officially established a new entity named PT Danantara Sumberdaya Indonesia. According to the administrative certification (AHU-0039765.AH.01.01.2026) dated May 19, 2026, the company is registered as a holding firm. While the company will function as a holding entity—managing assets and ownership stakes without direct involvement in the day-to-day operations of its subsidiaries—it is also empowered to provide advisory services for mergers and acquisitions to streamline the national resource management strategy.
Summary
Minister Bahlil Lahadalia announced a new government policy, mandated by President Prabowo Subianto, to centralize exports of three key commodities—palm oil, coal, and ferroalloys—under state-owned enterprises (BUMNs). This initiative is planned for implementation by mid-2026, or sooner, with the primary objective of eliminating issues like under-invoicing and transfer pricing. The policy aims to enhance monitoring capabilities, curb illicit practices, and ultimately optimize state revenue from natural resources.
Initially, the policy will focus on coal and ferroalloys, while existing international contracts will continue to be honored to avoid disrupting current trade flows. Future transactions will require synchronization and data integration with the designated BUMNs, including the newly established PT Danantara Sumberdaya Indonesia under the Danantara sovereign wealth fund. President Prabowo expects this strategy to significantly improve national revenue collection from natural resources.
