JAKARTA – In a significant policy shift, President Prabowo Subianto’s government has introduced a new export governance regulation that centralizes shipment of palm oil, coal, and ferroalloys under a single state-owned enterprise.
Meanwhile, the Indonesia Central Bank increased its benchmark interest rate by 50 basis points to manage economic pressures, while maintaining its 2026 growth outlook.
New BUMN Monopolizes Exports of Natural Resources
Under the newly signed Government Regulation on Export Governance of Natural Resource Commodities, a single dedicated State-Owned Enterprise will act as the primary exporter for crude palm oil, coal, and ferroalloys.
President Prabowo announced the decision during a parliamentary plenary session in Jakarta, signaling a major intervention in the resource trade.
“This new entity will centralize export activities to improve governance and state revenue from key commodities,”stated President Prabowo Subianto.
The move aims to streamline logistics, curb illegal exports, and strengthen Indonesia’s bargaining power in global markets.
However, it has raised concerns among private sector players about market access and pricing efficiency.
BI Hikes Rate but Sticks to Growth Forecast
The Central Bank of Indonesia has raised its benchmark interest rate by 50 basis points to 5.75%, yet it still projects 2026 economic growth between 4.9% and 5.7%.
According to the central bank, global uncertainties, along with the need to stabilize the rupiah and contain inflation, drove the rate hike.
Separately, the Financial Services Authority issued Regulations Number 3 and Number 5 of 2026 to reinforce capital market infrastructure.
On the other hand, state utility firm State Electricity Company reported a 6.84% revenue growth in 2025, reaching 582.68 trillion rupiah.
President Prabowo has also commissioned all ministers to eliminate illegal levies and corruption within the bureaucracy to support economic performance.
For foreign investors and trading partners, the new single-exporter policy for natural resources represents a pivotal shift in Indonesia’s trade regime, warranting close attention to implementation and global price impacts.
Source: ANTARA News
Feat Image: ANTARA News
