Jakarta, May 21, 2026 – The Europe Today: President Prabowo Subianto has emphasized the Indonesian government’s commitment to eliminating illegal mining, unlawful plantation activities, and export fraud, saying the measures could help the country secure up to US$150 billion annually through the establishment of a natural resources export management system.
Speaking during a plenary session of the House of Representatives (DPR) in Jakarta on Wednesday, while presenting the government’s 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF), President Prabowo said Indonesia had suffered major financial losses due to fraudulent export practices, including over- and under-invoicing, illegal mining, and unauthorized plantation operations.
“We have calculated a potential savings of US$150 billion a year from these leaks,” Prabowo stated, describing the figure as a significant strategic opportunity for the country.
He stressed that the success of the initiative would depend on the government’s determination and resolve to enforce reforms and improve oversight in the natural resources sector.
As part of the policy, the president announced the issuance of a Government Regulation on the Management of Natural Resource Commodity Exports. Under the new regulation, state-owned enterprises (SOEs) will be designated as the sole exporters of several strategic commodities, including palm oil, coal, and ferroalloys.
Prabowo explained that all export sales of these commodities would be conducted through government-appointed SOEs, which would then transfer export proceeds to the business operators involved in the activities.
According to the president, the policy is aimed at strengthening supervision over commodity exports and eradicating fraudulent practices such as under-invoicing, transfer pricing manipulation, and the embezzlement of foreign exchange earnings from exports.
He noted that the reforms are expected to enhance tax collection and boost state revenues derived from Indonesia’s natural resources sector.
