President Prabowo Subianto announced Wednesday that Indonesia will centralize the export of three key commodities through a state-owned agency [1].
The move represents a significant shift in trade policy for one of the world's largest commodity exporters. By mandating that palm oil, coal, and ferroalloy or iron alloys be routed through a single government entity, Jakarta is tightening its grip on the flow of strategic resources to global markets [2].
Government officials said the plan is designed to increase state revenue and ensure that strategic resources are managed for the benefit of the nation [3]. This centralization allows the state to maintain greater oversight of export flows, reducing the autonomy of private trading firms.
"We will ensure that the export of strategic commodities is managed by the state to benefit the nation," Subianto said [4].
The policy change on May 20, 2026 [5], has sparked concern among international trade observers. The sudden shift in how these materials reach the global market could create bottlenecks or price volatility for industries relying on Indonesian raw materials.
Analyst Arif Mahendra said the move resembles a hostile takeover of the sector, with far-reaching implications for global supply chains [6].
The specific commodities targeted—palm oil, coal, and ferroalloys—are critical to global energy and manufacturing sectors [7]. Industry experts said that these new rules could reshape global supply chains and pricing for these specific materials [8].
This strategy follows a broader trend of resource nationalism in the region. By controlling the export gate, Indonesia can more easily enforce domestic processing requirements and maximize the value added to materials before they leave the country.
“"We will ensure that the export of strategic commodities is managed by the state to benefit the nation."”
This policy signals a move toward resource nationalism, where the Indonesian government prioritizes state control over market-led exports. By centralizing the trade of palm oil, coal, and ferroalloys, Jakarta gains significant leverage over global pricing and supply, potentially forcing international buyers to negotiate directly with the state rather than private suppliers.
