Indonesia centralises export of coal, palm oil and ferroalloys via new state-owned channel

On 20 May 2026 President Prabowo Subianto presented the government’s macro‑economic outlook and announced a structural shift in Indonesia’s export policy. All exports of coal, palm oil and ferroalloys will now be routed through a single state‑owned enterprise, PT Danantara Sumberdaya Indonesia (DSI), in an effort to curb under‑invoicing and transfer‑pricing. The move expands President Prabowo’s broader agenda of economic centralisation, building on earlier resource‑nationalism policies such as the 2020 ban on raw nickel‑ore exports.

The new Government Regulation 26/2026 gives DSI authority to set export prices and profit margins, with a phased implementation that will culminate in a full single‑channel system by January 2027. The announcement triggered an immediate market reaction: the Jakarta Composite Index fell more than three percent and palm‑oil farmers reported price declines. Observers note uncertainty over how DSI will price commodities, as no transparent formula has been disclosed, and the regulation could later be applied to additional resources.