Prabowo Prepares Strict Oversight of Natural Resources Exports: Don’t Get ‘Fooled Again’
Rancak Media JAKARTA — The Indonesian stock market witnessed a volatile trend for key commodity players in the coal and crude palm oil (CPO) sectors, with shares generally showing a weakening bias. This market movement comes in direct response to a significant new government policy mandating strategic commodity exports to be channeled through a single state-owned enterprise (SOE) mechanism, causing ripples across the market.
According to data from IDX Mobile as of 11:50 AM WIB, several prominent commodity stocks experienced considerable pressure. Shares of PT Alamtri Resources Indonesia Tbk. (ADRO) saw a notable correction of 6%, dipping to Rp2,190. Similarly, PT Bayan Resources Tbk. (BYAN) weakened by 2.18%, closing at Rp11,200, reflecting investor caution regarding the evolving regulatory landscape.
However, the impact was not uniformly negative across the entire commodity sector. Some companies managed to defy the downward trend. PT Indo Tambangraya Megah Tbk. (ITMG) shares demonstrated resilience, posting a slight gain of 0.11% to reach Rp23,250. More strikingly, PT Bukit Asam (Persero) Tbk. (PTBA) surged significantly, climbing 6.79% to Rp2,830, indicating a mixed market reaction to the new policy framework.
This fluctuating market performance immediately followed President Prabowo Subianto’s issuance of a new Government Regulation (PP). This pivotal regulation now mandates that the sale of specific natural resource (SDA) export commodities must be conducted exclusively through a government-appointed State-Owned Enterprise, acting as the sole exporter.
During his address at a DPR plenary session in Jakarta on Wednesday (May 20, 2026), where he presented the KEM PPKF 2027, President Prabowo detailed the initial three core commodities slated to fall under this new stringent scheme: crude palm oil (CPO), coal, and ferro alloy. These vital commodities represent a substantial portion of Indonesia’s export earnings.
Highlighting the immense economic stakes, President Prabowo stated that the total foreign exchange earnings from the export of these three crucial commodities alone amount to approximately US$65 billion annually, equivalent to an staggering Rp1,100 trillion. This figure underscores the potential for enhanced state revenue through improved governance.
“The issuance of this Government Regulation is a strategic step to strengthen the governance of our commodity exports,” Prabowo emphasized. He further elaborated, “The sale of all our natural resources, starting with crude palm oil, coal, and ferro alloys, we mandate must be done through SOEs appointed by the Government of the Republic of Indonesia as the sole exporter.” This statement, made during the DPR plenary session for the KEM PPKF 2027 presentation, signals a decisive shift in national export management.
Prabowo explained that under this new mechanism, the appointed SOE will facilitate the sale of exports and then transfer the proceeds to the respective business operators involved in the related activities. He described this innovative scheme as a “marketing facility,” designed to streamline and centralize the export process while ensuring transparency.
The primary objective behind this robust new regulation is to significantly enhance oversight and combat illicit financial practices such as underinvoicing, transfer pricing, and the alleged evasion of Export Proceeds Foreign Exchange (DHE). By centralizing export channels, the government aims to close loopholes and ensure greater accountability in the natural resources sector.
Ultimately, President Prabowo articulated that this ambitious policy is expected to optimize tax revenues and overall state income. “We hope our revenues can be like Mexico and the Philippines,” he remarked, expressing a clear vision for Indonesia’s fiscal future through improved natural resource governance and more efficient export management.
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Summary
The Indonesian stock market has experienced volatility following President Prabowo Subianto’s new regulation requiring the export of coal, CPO, and ferro alloys to be managed exclusively through a government-appointed state-owned enterprise (SOE). While this mandate caused shares of major players like ADRO and BYAN to decline due to investor uncertainty, other companies such as PTBA showed unexpected resilience. The policy aims to centralize trade through a “marketing facility” mechanism to improve governance over these vital commodities.
By implementing this single-gate export system, the government intends to bolster transparency and prevent illicit practices, including underinvoicing, transfer pricing, and the evasion of export proceeds. This strategic move targets approximately US$65 billion in annual export earnings to optimize state revenue and tax collection. Ultimately, the administration seeks to streamline national export management and align fiscal performance with international benchmarks.
