Indonesia introduce centralised export regime for strategic natural resources: key regulatory changes and competition law considerations

Overview

On 20 May 2026, Indonesia introduced a new regulatory framework centralising the export of certain strategic natural resources commodities through a designated state-owned enterprise (SOE), which became effective on 1 June 2026.  Government Regulation No.24 of 2026 on the Export Governance of Strategic Natural Resource Commodities (Regulation 24) fundamentally changes the export model for coal, palm oil and ferroalloy commodities (together, Strategic Commodities) by requiring trade of all such Strategic Commodities to be channelled through such a designated SOE.  On 25 May 2026, the Indonesian Government subsequently established PT Danantara Sumberdaya Indonesia (PT DSI)¹ to be such designated SOE. 

PT DSI sits underneath BPI Danantara, which is known as Indonesia's sovereign wealth fund and investment management agency (BPI Danantara). On 24 August 2026, PT DSI announced the appointment of its Board of Commissioners and Board of Directors who, between them, have a very broad range of skills, expertise and experience.

This update summarises the key features of the Regulation 24 and highlights the principal Indonesian Competition Law² issues that businesses should consider during implementation.

Background

Having been officially announced in the Plenary Session of the House of Representatives on 20 May 2026, the Indonesian Government immediately enforced the centralisation of export commodities policy through Regulation 24, which:

1. introduces a centralised export governance scheme for the Strategic Commodities; and
2. resulted in the subsequent establishment of a new SOE (i.e., PT DSI) specifically designated by the Government to undertake Strategic Commodities’ export.  

The Government believes that Regulation 24, particularly the appointment of an export SOE (i.e., PT DSI), may strengthen its oversight in the export of Strategic Commodities, enhancing transparency in export activities, and preventing under-invoicing practices and transfer pricing.³

Although Regulation 24 has been legally effective since 1 June 2026, a transition period has been allowed until 31 December 2026.  During this transitional period, current Strategic Commodities export companies may continue their ongoing business, but now they must provide their export activities documents using PT DSI as an intermediary.  Regulation 24 also allows the Government, through the coordinating Minister for Economic Affairs, to set a shorter transition period (i.e., before 31 December 2026) following its evaluation.  

Key regulatory changes

The Government intends to expand the centralisation of exports for Strategic Commodities gradually.  For now, the regulation will focus on the three key Strategic Commodities.  Detailed implementing regulations for the export policies relevant to the Strategic Commodities are set out in Minister of Trade Regulation (MoT Reg) No. 15 of 2026 (for coal), MoT Reg No. 16 of 2026 (for palm oil), and MoT Reg No. 17 of 2026 (for ferroalloys), which also came into effect on 1 June 2026. 

Before Regulation 24 was issued, the Strategic Commodities were exported directly by domestic exporters or businesses through a sectoral trade licensing system.  Following the new regulatory framework, the export of Strategic Commodities will be exclusively conducted by PT DSI (either as owner or intermediary).  

Businesses currently involved in exporting Strategic Commodities must submit the documents reflecting their export activities to PT DSI through the CEISA 4.0 portal, the customs information system operated by the Directorate General of Customs and Excise (Bea Cukai).⁴  Exporters must confirm that the relevant data has been submitted to PT DSI through this system, and failure to do so may result in the automatic rejection of the exporter’s submitted notification/declaration.⁵

The Role of PT DSI as the sole export SOE

Regulation 24 does not clearly explain how the role of the “designated export SOE” (either as owner or sole intermediary) will operate in practice.  However, Regulation 24 has specifically granted the export SOE specific rights to:

1. determine the Strategic Commodities’ export selling price;
2. determine the margin to be applied in the Strategic Commodities export; and
3. review sales contracts entered before 1 June 2026 to assess their compliance with the Regulation 24 (during the transitional period).

BPI Danantara further clarified that PT DSI’s role in the following terms:⁶

• During the transition period (1 June to no later than 31 December 2026), PT DSI is expected to strengthen the export reporting and monitoring system through digitalisation.  PT DSI must establish a digital platform to analyse the transaction data on Strategic Commodities’ export, including identifying any under-invoicing practices.
• After the transition period (from no later than 1 January 2027), PT DSI will focus on its role as an intermediary, which facilitates and oversees Strategic Commodities’ export activities, where the commercial relationship between producers and overseas buyers is ongoing.

On 17 June 2026, PT DSI held a meeting with export industry stakeholders to explain the technical aspects of the new regulatory framework.⁷ At this meeting, we understand that PT DSI explained the meaning of Article 3(1) of Regulation 24 (Article 3(1)), which states that Strategic Commodities “may only be exported by the export SOE”.  PT DSI’s explanation was that it is required, at the minimum, to be included in the contractual/documentary chain so that it can access the transaction data, rather than ACTUALLY taking over the export process itself.⁸ 

PT DSI therefore appears to interpret its role under Article 3(1) as that of sole intermediary, rather than as the sole business entity authorised to conduct Strategic Commodities’ export activities.

Potential Indonesian Competition Law implications

Regulation 24’s preamble indicates that the centralisation of Strategic Commodities’ export is fundamental to the implementation of Article 33(3) of the Indonesian Constitution, which declares that the state must have control over all natural resources.  The Indonesian Trade Law also allows the Government to restrict the export and import of goods for national security and/or public interest safeguards. 

SOEs can have exemptions from the operation of the Indonesian Competition Law for certain activities, to the extent that such exemption is regulated in a law.⁹  In practice, this means that an SOE may carry out activities that are inconsistent with the Competition Law as long as they are expressly authorised to do so by law.  An example of an SOE being permitted to act inconsistently with the Competition Law is set out in the SOE Law¹⁰, that expressly authorises the President to grant monopoly rights to an SOE or its subsidiaries where it is deemed necessary for the national interest or on grounds determined by the President.   

Monopoly and market structure

Even though Regulation 24 has a clear legal basis, its implementation may still be subject to Competition Law challenges.  First, PT DSI’s exclusive position creates a de facto monopoly, and it is likely to hold a dominant position (as referred to under Articles 17(1) and 25 of the Competition Law).  At the same time, the creation of an export SOE under Regulation 24 has fundamentally shifted the market structure, from a competitive export market to a centralised single channel structure.  Even though such a monopoly may arise by operation of a law, exercise of the monopoly remains subject to scrutiny where its implementation results in abuse of a dominant position.  

Pricing and discrimination risks

As the sole entity that has also been granted the right to determine the price and margin for the export of Strategic Commodities, PT DSI will become a price maker in Strategic Commodities.  The implementation of different prices or commercial terms for different exporters could potentially breach the anti-discrimination requirements under the Competition Law. 

Article 6 of the Competition Law prohibits a business entity (such as PT DSI) from charging different prices to business partners for the same goods or services, while Article 19(d) of the Competition Law prohibits discriminatory treatment being applied to businesses that may result in monopolistic practices and/or unfair business competition.[3]  To comply with these Competition Law provisions, PT DSI would need to have a clear and objective basis for determining any differences in pricing or commercial terms, which must be applied consistently to exporters in similar circumstances.

Access to competitively sensitive information (CSI)

Third, as the Strategic Commodities’ exporters are required to provide to PT DSI their data, including sales contracts, PT DSI will have access to CSI of all related exporters.  Access to such information may create Competition Law risks among competitors that may lead to the facilitation of prohibited coordination between competitors or cartels.  Although PT DSI itself is not a competing exporter, it will need to ensure confidentiality safeguards are in place, so that all CSI controlled by PT DSI is used solely for regulatory purposes.

Key takeaways

The transitional period of the implementation of Regulation 24 will be critical as to how Indonesia’s new centralised export regime will operate in practice. While a number of implementation issues need to be clarified, businesses involved in the export of Strategic Commodities should bear in mind the following:

• Fundamental change to the export market structure.  The new regime replaces the existing the market structure for the export of Strategic Commodities through a single export channel operated by PT DSI.  
• Competition Law scrutiny remains relevant.  Notwithstanding the monopoly right granted by Regulation 24, PT DSI remains subject to Indonesia’s Competition Law. In addition, even though PT DSI’s monopoly is not prohibited, PT DSI’s conduct in exercising its monopoly rights may still be scrutinised by the Indonesian Competition Commission (locally known as KPPU).
• Implementation will be critical.  Transparent, non-discriminatory and objective pricing and margin setting will be essential to mitigate Competition Law risks that may arise through the implementation of Regulation 24, which inherently centralises and therefore concentrates the Strategic Commodities’ export.