President Prabowo Subianto announced Wednesday that Indonesia will centralize the export of key commodities through a state-owned enterprise [1].
The move represents a significant shift in how the Southeast Asian nation manages its natural resources. By tightening state control, the government aims to maximize national revenue and eliminate the systemic financial leakages that have plagued the commodity sector for decades.
Under the new plan, the export of palm oil, coal, and ferro-alloys will be required to go through a state-owned agency or enterprise [1], [2], [3]. This mechanism is designed to ensure the government maintains a tighter grip on the movement of these vital resources out of the country.
Subianto said the strategy is necessary to protect the national treasury. "We will centralise the export of key commodities through a state‑owned enterprise to ensure proper revenue and prevent fraud," he said [1].
A primary driver for the policy is the prevalence of under-invoicing, where exporters report lower values for goods to avoid taxes. According to government data, Indonesia has lost up to $908 billion [4] over the past 34 years due to this practice.
Subianto said the new regulation will help curb "fraud" [5]. The administration intends to use the centralized system to verify the actual value of exports and ensure that the state receives its full share of the proceeds.
This announcement took place in Jakarta, where the president detailed the plan to parliament [1], [2], [3]. The policy targets some of the world's most traded raw materials, positioning the state as the primary gatekeeper for these global supply chains.
“"We will centralise the export of key commodities through a state‑owned enterprise to ensure proper revenue and prevent fraud."”
This shift toward resource nationalism indicates Indonesia's intent to move away from a laissez-faire export model. By eliminating under-invoicing and consolidating control, the government is attempting to capture a larger percentage of the value chain. For global markets, this could lead to increased price volatility or supply disruptions if the transition to a state-managed system creates administrative bottlenecks in the export of coal and palm oil.
