JAKARTA, May 20 (Xinhua) -- Indonesian President Prabowo Subianto on Tuesday announced a new regulation requiring exports of several strategic natural resources commodities to be conducted through state-owned enterprises, as part of efforts to strengthen state control over export revenues and improve governance in the sector.

Indonesia's President Prabowo Subianto raises his fist as he delivers his address during a House of Representatives plenary session in Jakarta, Indonesia, Wednesday, May 20, 2026. (Photo: AP)

Speaking at the parliament complex in Jakarta, Prabowo said the policy, expected to take effect on June 1 this year, would apply to key export commodities including palm oil, coal and ferroalloys.

"All exports of strategic natural resources must go through state-owned enterprises appointed by the government," he said.

Prabowo said the regulation was introduced to improve transparency and prevent practices such as under-invoicing and transfer pricing, which he claimed had caused significant losses to the country over many years.

"This is not some strange policy. Many countries protect their national interests and manage their strategic commodities carefully," he said.

According to Prabowo, all export transactions for the commodities covered under the regulation will later be recorded and monitored through a centralized mechanism involving state firms. He argued that Indonesia had long suffered from weak oversight in commodity exports despite being one of the world's largest producers of coal, palm oil and nickel.

The president also linked the policy to his broader push for downstream industrialization and stronger state involvement in the economy.