New Export Governance Direction for Indonesia’s Strategic Natural Resource Commodities
Authors
Background
Indonesia is moving toward a more centralized model for the export of certain strategic natural resource commodities. Following the issuance of Government Regulation No. 24 of 2026 concerning the Governance of Exports of Strategic Natural Resource Commodities ("GR 24/2026"), selected natural resource exports will be placed under a designated state-owned enterprise ("SOE") export mechanism.
This framework could mark a significant shift in Indonesia's export governance, particularly for sectors that currently depend on direct contractual arrangements between Indonesian producers or exporters and offshore buyers.
General Overview of the Framework
Under GR 24/2026, the initial coverage includes coal, palm oil, ferro alloy, and other strategic natural resource commodities that may be determined by the Government from time to time, with the relevant Harmonized System ("HS")[1] Codes expected to be further specified in a Minister of Trade regulation.
The framework is part of a broader policy effort to strengthen state oversight over strategic exports, improve trade data accuracy, and address concerns around trade under-invoicing and export proceeds leakage. It also sits alongside the recently strengthened Foreign Exchange Export Proceeds (Devisa Hasil Ekspor -- "DHE") framework under Government Regulation No. 2 of 2026 and Government Regulation No. 21 of 2026.
From an industrial policy perspective, GR 24/2026 is also consistent with the Government's broader approach under Government Regulation No. 28 of 2021 concerning Industrial Sector Implementation, as amended by Government Regulation No. 46 of 2023. Under that framework, state control over strategic industries may be implemented through regulation of ownership, licensing, production, distribution, pricing, supervision, and export restrictions to support domestic supply and industrial deepening.
Commodity Coverage
GR 24/2026 defines "Strategic Natural Resource Commodities" broadly, namely as natural resource commodities determined by the Government by considering national interests, economic stability, domestic needs, and/or national strategic resource management.[2]
At this stage, coal, palm oil, and ferro alloy are expressly identified in GR 24/2026. However, the definition and designation mechanism allow future expansion to other commodities. Additional commodities may be determined through a coordination meeting and formalized through a Minister of Trade regulation.[3] Accordingly, businesses in strategic minerals, plantation commodities, and other export-oriented natural resource sectors should continue monitoring whether their products may later be brought within the regime.
Role of SOE Export Entity and the Transition Period
The most significant feature of GR 24/2026 is the limitation on the party entitled to export covered commodities. Under GR 24/2026, Strategic Natural Resource Commodities may only be exported by a designated SOE export entity, either as owner or sole intermediary.[4] In this regard, Government statements identify PT Danantara Sumberdaya Indonesia ("DSI") as the SOE expected to assume this role.
This would represent a departure from the current export model, where private business actors may generally export commodities subject to applicable licensing, customs, and sectoral requirements. The model would require exports of covered commodities to be conducted through, and subsequently by DSI.
During the transition period, exports may only be conducted through the SOE export entity. GR 24/2026 provides that this transition period runs no later than 31 December 2026, but it also requires an evaluation within three months after the regulation comes into force.[5] Based on that evaluation, the Government may set an earlier deadline before 31 December 2026.
After the transition period, exports may only be conducted by the SOE export entity. This suggests a more substantive transfer of the export-facing function to DSI or the relevant SOE export entity, which may require domestic producers to adjust their business model from direct international sales to a domestic sale or supply arrangement with the SOE export entity.
Implications for Existing Export Arrangements
Businesses in affected commodity sectors should pay close attention to the treatment of existing export contracts. Many exporters currently rely on long-term sales contracts, offtake arrangements, shipping arrangements, price adjustment mechanisms, and trade finance structures that are based on direct contractual relationships between the Indonesian exporter and offshore buyer.
The introduction of a mandatory SOE export channel may require companies to revisit key contractual provisions, including change in law, force majeure, assignment, novation, payment redirection, sanctions undertakings, title transfer, delivery terms, and risk allocation. This will be particularly relevant for contracts that extend beyond the transition period.
GR 24/2026 provides that sales contracts signed before 1 June 2026 and still in force will be evaluated by the SOE export entity. This may create immediate review requirements for existing long-term offtake and export sales arrangements.[6]
The impact during the transition period is likely to be more procedural and documentary, as producers may still preserve certain underlying commercial arrangements while routing export documentation and related processes through the SOE export entity. GR 24/2026 clarifies that exports "through" the SOE export entity include reporting and submission of export documents, sales contracts, and other related documents, as well as additional data and information through integrated systems such as CEISA, SINSW, INATRADE, SiMoDIS, and/or MOMS.[7]
After the transition period, the impact may become more structural. If exports must be conducted by the SOE export entity, domestic producers may need to shift to a domestic sale or supply model. This is reinforced by GR 24/2026, which provides that the selling price of Strategic Natural Resource Commodities is determined by the SOE export entity, and that the SOE export entity may determine a reasonable margin in accordance with applicable laws and regulations.[8]
Shipping and Logistics Considerations
The newly issued framework may also affect shipping and logistics arrangements. This is particularly relevant where current export contracts are built around a private exporter's control over shipment scheduling, vessel nomination, loading arrangements, and delivery terms.
Commodity export transactions are often closely linked to charterparty arrangements, bills of lading, letters of credit, shipping instructions, laytime and demurrage, port readiness, and customs clearance. If DSI becomes the party through which, or by which, exports are legally conducted, businesses should review whether their shipping documents and commercial contracts remain aligned with the new structure.
For example, if an Indonesian producer is currently named as shipper, exporter of record, seller, or beneficiary under a letter of credit, the introduction of the SOE export entity may require changes to shipping instructions, payment documents, title transfer mechanics, and document flow. Any inconsistency between the commercial contract, customs declaration, bill of lading, and payment documents could create practical issues in cargo release, insurance coverage, and dispute allocation.
GR 24/2026 expressly provides that the governance of exports of Strategic Natural Resource Commodities may include export control, including verification or technical tracing, as well as regulation of export transportation and insurance.[9] This gives a clearer regulatory basis for shipping, freight procurement, marine cargo insurance, and related documentation issues.
Additional issues may arise if the framework is implemented together with specific shipping requirements, including a requirement for exports to be conducted on a CIF basis. In that case, further attention may be required on freight procurement, marine cargo insurance, vessel nomination, and shipment execution. The SOE export entity structure may also affect jurisdiction and dispute resolution considerations in international commercial contracts and charter parties, particularly where counterparties prefer foreign governing law and neutral forums, including international arbitration.
Key Issues to Monitor & Practical Steps
Several implementation issues remain open. The implementing regulations will need to clarify the exact commodity coverage, including the relevant HS Codes, while sectoral guidance also remains pending. Businesses should also monitor how existing export regulations and sectoral procedures will be aligned with GR 24/2026, given that existing regulations governing exports of Strategic Natural Resource Commodities must now be implemented in accordance with GR 24/2026.
Businesses will also need clarity on the legal capacity of the SOE export entity, particularly whether it will act as an administrator, agent, facilitator, trader, seller, or exporter of record. In parallel, the payment and DHE mechanics will need to be aligned. Given the Government's broader focus on export proceeds, companies should expect closer scrutiny of payment flows, foreign exchange retention, and export reporting.
Businesses with government contracts or agreements containing investment, divestment, and domestic processing and/or refining commitments should also assess whether they may fall within the exemption mechanism provided under GR 24/2026.[10]
From a practical standpoint, businesses in potentially affected sectors should begin by mapping their regulatory exposure. This includes identifying affected products, relevant HS Codes, and export contracts that will remain active beyond the transition period.
Companies should review whether their existing contracts can accommodate exports conducted through or by the SOE export entity, particularly for sales contracts signed before 1 June 2026 that remain in force and are subject to evaluation under GR 24/2026. Key areas for review include the identity of the seller, exporter of record, payment recipient, delivery obligations, liability allocation, dispute resolution, change in law provisions, letters of credit, shipping documents, bank coordination, and customs procedures.
For businesses with long-term offshore buyers, early communication may be needed once the implementing rules become clearer. Buyers will likely seek certainty on contractual performance, delivery responsibility, and whether DSI will assume any direct contractual role.
Closing Remarks
The SOE-led export framework signals a significant shift in Indonesia's treatment of strategic natural resource exports. Although the policy is framed as a measure to improve export governance and support the domestic economy, its practical impact may be substantial for existing export models in major commodity sectors.
The practical implications will depend on the implementing regulations, the formal mandate of the SOE export entity, the detailed HS Code coverage, and sector-specific implementation by the relevant authorities. Businesses should avoid assuming that the framework will operate as a simple administrative routing mechanism, and should start preparing contract, payment, and shipping documentation reviews in parallel.
Footnotes
Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.
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