Indonesia tightens control of coal, palm oil and ferroalloy exports

Indonesia's Trade Ministry put new export controls on coal, palm oil and ferroalloys into force June 1, giving the central government tighter oversight of three commodities that anchor state revenue and palm-based fuel supply chains. In the first phase, exporters must report their export activity to a state firm appointed by the government. The move rests on Government Regulation No. 24 of 2026, issued May 20, as President Prabowo Subianto pushes to capture more earnings from the country's natural resources.

Prabowo said the regulation was meant to strengthen supervision, boost state revenues and improve governance of national commodity exports. Airlangga Hartarto said the first-stage list covers coal, palm oil and ferroalloy, and that the government will review whether to add other commodities every three months. That leaves the scope of the regime open to expansion, a point that matters for traders who move cargoes across Indonesia's bulk commodities complex.

Industry reaction has been wary. By June 9, trade ministry officials were facing a barrage of questions from palm oil, coal and ferroalloy exporters worried about how the plan would affect business. The commercial model is still being shaped, with the PT Danantara Sumberdaya Indonesia unit assigned to handle strategic commodity exports saying it will not take over existing contracts or customer relationships. The government has also discussed possible carve-outs for some traders in exchange for investments and joint ventures with the new state body.

The rollout is being phased in. Separate industry and legal updates point to a transition period through Dec. 31, 2026, before full palm-oil implementation on Jan. 1, 2027. That sequencing is critical because palm oil is not just a major export stream, it is also a key feedstock for Indonesia's biodiesel industry and a growing input for SAF planning.

Indonesia is the world's largest exporter of thermal coal and a major palm-oil supplier, so tighter export intervention could ripple through pricing, availability and contract timing well beyond Jakarta. With the country maintaining its B40 biodiesel mandate and having previously weighed B50, any change in palm-oil export handling will be watched closely by biodiesel and renewable diesel producers that depend on the virgin-versus-waste oil spread.