State Enterprise Control of Strategic Commodity Exports: PP 24/2026

Indonesia has placed the export of designated strategic natural-resource commodities in the hands of a single class of state-owned operator. Government Regulation No. 24 of 2026 on the Governance of Strategic Natural Resource Commodity Exports (Tata Kelola Ekspor Komoditas Sumber Daya Alam Strategis) was enacted on 20 May 2026 and took effect on 1 June 2026. It applies first to coal, palm oil, and ferroalloy, and it routes their export through a state-owned enterprise carrying a specific government assignment.

Issue

The regulation rests on Article 33 of the 1945 Constitution, which places the earth, water, and the natural wealth they contain under state control for the greatest prosperity of the people. Its elucidation reasons that where the state possesses the capital, technology, and management capacity to handle strategic commodities, it should manage them directly, so that the resulting proceeds accrue to the state. The operative authority comes from Pasal 38 paragraph (1) of Law No. 7 of 2014 on Trade, as last amended by Law No. 6 of 2023, which empowers the government to set export policy and controls. The stated aims are domestic supply stability, national economic resilience, added value, and sustainable national development.

Key Provisions

Pasal 1 supplies the central definition. A BUMN Ekspor is a state-owned enterprise that has received a special assignment from the government to carry out the export of strategic natural resource commodities. The same article defines a strategic commodity as one designated by the government with regard to national interest, economic stability, domestic need, or the management of national strategic natural resources.

Pasal 2 sets the scope and the designation mechanism. Paragraph (2) states that designation proceeds in stages. Paragraph (3) fixes the initial stage at three commodities: coal, palm oil, and ferroalloy. Paragraph (4) provides that further commodities are added through a coordination meeting chaired by the coordinating minister for economic affairs for non-food commodities, or the coordinating minister for food affairs for food commodities, attended by ministers and heads of non-ministerial government agencies. Paragraphs (5) and (6) leave the specific commodity types to a regulation of the trade minister.

Pasal 3 is the operative restriction. Paragraph (1) provides that designated commodities may only be exported by the BUMN Ekspor, either as owner or as sole intermediary. Paragraph (2) places the determination of the selling price with the BUMN Ekspor. Paragraph (4) allows it to set a margin within reasonable limits in accordance with prevailing rules.

Pasal 4 sets out how that control is exercised and where it stops. Paragraph (1) lists the instruments: export control including verification or technical tracing, arrangements for export transport and insurance, and other mechanisms provided by law. Paragraph (2) creates an exemption: businesses holding a contract or agreement with the government may be excluded from the channelling requirement, provided that agreement contains at minimum provisions on investment, divestment, and domestic processing or refining. Paragraph (3) requires any exemption to be decided in the same form of coordination meeting used for commodity designation.

Pasal 5 leaves further implementing rules to the relevant ministers and agency heads within their own authority, and Pasal 6 assigns them guidance and supervision.

The transitional rules in Pasal 7 govern the changeover. Letter a requires that export of the designated commodities be conducted through the BUMN Ekspor no later than 31 December 2026. Letter b requires an evaluation through a coordination meeting chaired by the coordinating minister for economic affairs within three months of entry into force. Letter c permits that minister to set an earlier deadline. Letters d and e provide that once the transition period closes, or once the function has been transferred in full, export may be conducted only by the BUMN Ekspor. The elucidation of Pasal 7 letter a describes the mechanics: exporters submit export documents, sales contracts, and related records to the BUMN Ekspor through integrated systems including CEISA, the Indonesia National Single Window, INATRADE, SiMoDIS, and the Minerba Online Monitoring System, with supplementary data transmitted automatically.

Pasal 8 requires sales contracts signed before 1 June 2026 and still running to be evaluated by the BUMN Ekspor. Pasal 9 subordinates existing rules on strategic commodity export to this regulation, and Pasal 10 sets the commencement date.

Implications

Exporters of coal, palm oil, and ferroalloy face a changed counterparty structure. Price setting and margin determination move to the BUMN Ekspor under Pasal 3, and existing sales contracts are subject to evaluation under Pasal 8 rather than being preserved untouched. The exemption in Pasal 4 paragraph (2) is narrow: it reaches only holders of a government contract containing investment, divestment, and domestic processing or refining commitments, and it requires a coordination-meeting decision. The three-month evaluation in Pasal 7 letter b, and the power to bring the deadline forward under letter c, mean the transition timetable is capable of moving before 31 December 2026.

Regulatory Context

The regulation was promulgated in State Gazette 2026 No. 58, with Supplementary Gazette No. 7178. Its listed legal bases are Article 5 paragraph (2) of the 1945 Constitution, Law No. 19 of 2003 on State-Owned Enterprises as last amended by Law No. 16 of 2025, and Law No. 7 of 2014 on Trade as last amended by Law No. 6 of 2023. Identification of the specific commodity types, and of the enterprise designated as BUMN Ekspor, is left to subordinate instruments.

Read the explanation of this regulation in the CRPG legal encyclopedia.

Methodology: This memo summarises the official regulation text and is not legal advice; report corrections to contact@crpg.id.

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