Indonesia's New Regulation on Natural Resource Exports: Enhancing State Oversight and Revenue Maximization
The Indonesian government, under President Prabowo Subianto, has introduced a new regulation on natural resource exports, establishing a dedicated agency for this purpose. This agency, a state-owned enterprise, will serve as the exclusive exporter for specified natural resources. The move is aimed at enhancing state oversight of natural resource exports in line with the constitutional provision that grants the state control over land, water, and natural resources. The regulation will be rolled out in phases, with a transition period from June 1 to August 31, 2026, followed by full implementation starting September 1, 2026. During this process, all export transactions will be gradually shifted to designated state-owned enterprises. The initial batch of commodities managed by the export agency includes palm oil, coal, and ferroalloys.
President Prabowo highlighted that the designated state-owned enterprises will transfer proceeds from each export sale to the relevant sector businesses. He also emphasized the significant revenue losses incurred by the state over the past three decades due to unrecorded exports, amounting to $908 billion or approximately 15,400 trillion Indonesian rupiah. This new regulation is a strategic step towards ensuring transparency and maximizing state revenue from natural resource exports.
In conclusion, the establishment of the natural resources export agency marks a significant development in Indonesia's governance of its natural resources sector. By centralizing export activities through state-owned enterprises, the government aims to strengthen control over these valuable resources and prevent revenue leakage. This initiative underscores the country's commitment to enhancing transparency and maximizing the benefits derived from its abundant natural resources.