The government is centralizing the export of coal, palm oil, and iron alloys through a single special state-owned enterprise (BUMN) under Danantara. This represents a bold leap in the Prabowo era aimed at ending foreign exchange leaks, securing domestic energy supplies, and strengthening Indonesia’s bargaining position on the global stage.
The Plenary Meeting Room at the Senayan Parliamentary Complex in Jakarta on Wednesday (20/5/2026) witnessed a new chapter in the direction of the national economy. From the podium, the government officially enacted the Government Regulation on the Governance of Strategic Natural Resource Exports. Its contents mark a long-awaited major breakthrough: all exports of black coal, crude palm oil (CPO), and iron alloys will now be consolidated through a single channel, a dedicated state-owned enterprise named PT Danantara Sumberdaya Indonesia (PT DSI).
President Prabowo Subianto described this tactical policy as a cornerstone of “Indonesia Incorporated,” a middle-path economic manifesto that marries state sovereignty with modern state capitalism. Jakarta’s argument is straightforward and patriotic: the state must take control of the gateway to natural wealth that has leaked for decades due to long chains of international speculators, in order to ensure the greatest possible prosperity for the people.
The government presented figures underscoring the urgency of this reform. Between 1991 and 2024, potential revenue lost due to export invoice manipulation (under-invoicing) and capital flight to tax havens (transfer pricing) is estimated at a staggering US$908 billion, equivalent to Rp15,400 trillion. Through a single export gateway, the government aims to directly cut this massive fraud. The clear target: ensuring that trade surpluses recorded on paper actually enter the domestic financial system to strengthen the rupiah.
Senior Analyst at the Indonesia Strategic and Economic Action Institution (ISEAI), Ronny Sasmita, views this move as a strategic effort to elevate Indonesia’s geopolitical standing in natural resources. As the world’s largest palm oil producer and a major coal exporter, Indonesia should rightfully dictate market prices rather than merely watch from the sidelines.
“The urgency lies in strengthening control and integration,” Ronny told Inilah.com on Friday (22/5/2026). According to him, centralization through a single exporting BUMN will synchronize production data, secure Export Proceeds Foreign Exchange (DHE) flows, and eliminate intermediary traders. With this centralized model, Jakarta now holds bargaining power as strong as Saudi Arabia’s with Aramco or Qatar’s with QatarEnergy.Although this major policy initially caused ripples in the spot market a common occurrence in any structural reform the government remains optimistic that domestic economic fundamentals will become far more solid once the new ecosystem is fully operational.
Consolidation in the Upstream Sector:
Toward Integrated Trade Governance. The next three months will be a critical transition period for players in the extractive industry. The government has wisely provided a grace period so the industry is not caught off guard. Business operators are required to submit contract data and export documents under the Concurring Carrier (CC) or Qualitate Qua (QQ) schemes to Danantara for evaluation and integration.
Executive Director of the Indonesian Coal Mining Association (APBI), Gita Mahyarani, acknowledged that intensive communication is ongoing with the Ministry of Energy and Mineral Resources (ESDM). “The abundant details of the value chain are being aligned,” she said at the Coordinating Ministry for Economic Affairs office on Thursday (21/5/2026).
The government has assured that existing long-term contracts with buyers in Japan, India, and South Korea will be respected and that legally certain transition mechanisms will be provided. The coal sector’s experience with an integrated digital monitoring system will be adopted and strengthened by Danantara to ensure efficient synchronization free from costly bureaucratic hurdles.
In the palm oil sector, the single-gateway policy is also designed to bring fresh air. With a BUMN acting as stabilizer and sole export manager, Indonesia’s bargaining position for palm oil products in global markets will improve. This is expected to provide price certainty at the upstream level, ultimately protecting millions of independent smallholders from wild price fluctuations often manipulated by international traders.
Addressing Challenges, Building a Fortress of Accountability
Every major policy that overhauls the old order naturally sparks heated discussion. Economist at the Center of Economic and Law Studies (CELIOS), Nailul Huda, warned the government to remain vigilant against past risks and to ensure the new governance remains competitive, accountable, and transparent. Historical experiences with commodity trade governance serve as valuable lessons for building a far superior and cleaner system.
The government is fully aware of these challenges. Centralizing exports under “Indonesia Incorporated” is precisely intended to eradicate corrupt practices and systemic economic value leakage through technological integration.
“The key lies in modern accountability architecture,” emphasized Ronny Sasmita. Export transaction oversight must be built on end-to-end digital integration. Port activities, customs, cargo volumes, and payment flows will be connected in a single national monitoring system that can be tracked in real time.
This step provides a concrete answer to closing price manipulation loopholes that have long been difficult to trace.
National Coordinator of Publish What You Pay (PWYP) Indonesia, Aryanto Nugroho, reminded that the spirit of Article 33 of the 1945 Constitution championed by the government must translate into principles of accountability and public prosperity. With cross-institutional oversight involving the DPR, BPK, and KPK, Danantara is projected to become a model of a clean, transparent, and professional state institution.
Abundant Domestic Energy: A Leap Toward Self-Reliance and Downstreaming
Behind the establishment of PT Danantara Sumberdaya Indonesia (PT DSI) lies a visionary strategic blueprint to secure national energy resilience. This policy serves as an important catalyst for downstreaming programs and meeting domestic energy needs independently. Executive Director of CELIOS, Bhima Yudhistira, analyzed that tight single-gateway control will ensure domestic coal supplies remain secure and abundant.
This is crucial to supporting the national industrialization agenda, particularly to power nickel and aluminum smelter industrial zones outlined in the 2025–2034 Electricity Supply Business Plan (RUPTL). With a guaranteed domestic energy supply, the wheels of downstreaming strategic commodities can turn without the shadow of supply crises.
A similar approach strengthens the palm oil sector. Starting July 1, 2026, the government is preparing to accelerate the implementation of mandatory B50 biodiesel a major leap toward energy self-reliance to substitute imported fuel oil. The crude palm oil (CPO) requirement of 18.6 million tons per year for the B50 program can be met with supply certainty protected by Danantara’s single-gateway control.
Although the long-term target remains a full transition to 100% renewable energy, the tactical step of optimizing palm-based bioenergy and securing domestic coal supplies represents a realistic and robust solution to maintain national energy resilience amid global geopolitical uncertainties, such as those previously seen in the Strait of Hormuz.
A New Dawn in Natural Resource Governance
PT Danantara Sumberdaya Indonesia (DSI) now holds full control at the gateway of international trade. The success of this super investment management agency will mark a new historical milestone in proving that the state can serve as a strong yet professional operator.
Executive Director of Sustain at Tata, Mustasya, stated that Danantara must leverage this momentum to implement clean, modern internal governance. Beyond increasing state revenue, this single-export agency has a golden opportunity to correct past market failures by integrating environmental impact management into trade policy.
The application of export duties or adjustments to the economic value of extractive commodities, such as coal, can serve as instruments for green funding in the future, including to support the ambitious development of national solar power plants.
Senayan has struck the gavel, and the Prabowo cabinet has chosen its path: the path of sovereignty. Through Danantara’s single gateway, Indonesia is preparing to step forward as a respected global economic giant standing tall on its own natural wealth, managed safely, transparently, and entirely for the prosperity of the people. [Diana/Clara/Ikh]
Source: Inilah.com